Tag Archives: home inspections

8 HOME INSPECTION RED FLAGS

8 HOME INSPECTION RED FLAGS:

Our gallery of home inspection nightmares (below) is good for a laugh, but a home inspection is serious business. It’s the buyer’s opportunity to make sure that the house they’re about to purchase doesn’t hold any expensive surprises.

A typical home inspection includes a check of a house’s structural and mechanical condition, from the roof to the foundation, as well as tests for the presence of radon gas and the detection of wood-destroying insects. Depending on the seriousness of what the inspection uncovers, the buyer can walk away from the deal (most contracts include an inspection contingency in the event of major flaws) or negotiate with the seller for the necessary repairs.

These are the red flags that should send a buyer back to the negotiating table, according to home improvement expert Tom Kraeutler of The Money Pit.

1. Termites and other live-in pests: The home you’ve fallen in love with may also be adored by the local termite population. The sooner termites are detected, the better. The same goes for other wood-devouring pests like powder-post beetles. Keep in mind that getting rid of the intruders is just the first step. Once the problem has been addressed, have a pest control expert advise you on what needs to be done in order to prevent their return.

2. Drainage issues: Poor drainage can lead to wood rot, wet basements, perennially wet crawlspaces and major mold growth. Problems are usually caused by missing or damaged gutters and downspouts, or improper grading at ground level. Correcting grading and replacing gutters is a lot less costly than undoing damage caused by the accumulation of moisture.

3. Pervasive mold: Where moisture collects, so grows mold, a threat to human health as well as to a home’s structure. Improper ventilation can be the culprit in smaller, more contained spaces, such as bathrooms. But think twice about buying a property where mold is pervasive — that’s a sign of long-term moisture issues.

4. Faulty foundation: A cracked or crumbling foundation calls for attention and repair, with costs ranging from moderate to astronomically expensive. The topper of foundation expenses is the foundation that needs to be replaced altogether — a possibility if you insist on shopping “historic” properties. Be aware that their beautiful details and old-fashioned charms may come with epic underlying expenses.

6. Worn-out roofing: Enter any sale agreement with an awareness of your own cost tolerance for roof repair versus replacement. The age and type of roofing material will figure into your home inspector’s findings, as well as the price tag of repair or replacement. An older home still sheltered by asbestos roofing material, for example, requires costly disposal processes to prevent release of and exposure to its dangerous contents.

7. Toxic materials: Asbestos may be elsewhere in a home’s finishes, calling for your consideration of containment and replacement costs. Other expensive finish issues include lead paint and, more recently, Chinese drywall, which found its way into homes built during the boom years of 2004 and 2005. This product’s sulfur off-gassing leads to illness as well as damage to home systems, so you’ll need to have it completely removed and replaced if it’s found in the home that you’re hoping to buy.

8. Outdated wiring: Home inspectors will typically open and inspect the main electrical panel, looking for overloaded circuits, proper grounding and the presence of any trouble spots like aluminum branch circuit wiring, a serious fire hazard.

The McMillan Group/Centum Supreme Mortgages Ltd.

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10 Signs to Watch out for to Avoid Renovating a Money Pit

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12 home inspection issues buyers can leverage to negotiate the sale price

Photo: James Bombales

Waiving a home inspection is like purchasing a used car on Craigslist without taking a look under the hood — you’re likely to run into issues down the road. A new survey from the online home improvement marketplace, Porch, reveals that 86 percent of home inspections uncover one or more problems that need to be addressed. While hiring a home inspector will set you back about $377 on average, their expertise could save you from buying a lemon or shelling out thousands of dollars in future repairs.

Prospective homebuyers can use the information provided by a home inspector to negotiate a lower sales price, accounting for the cost of repairs or replacing a feature altogether. Of the 1,000 individuals surveyed by Porch who hired a home inspector, 37 percent submitted a revised offer with help from their real estate agent, saving an average of $14,000 off the listing price of their new home. That’s no small chunk of change!

Here we examine the most-flagged home inspection issues buyers can use to negotiate the best sale price.

Photo: James Bombales

1. Roof – flagged in 19.7% of reports

Roofs with asphalt or cedar shingles have an average lifespan of 20 years whereas metal roofs only need to be replaced every 50 to 75 years. Your home inspector will look for signs of water damage, mold or algae, and take note of any sagging or missing shingles.

2. Electrical – flagged in 18.7% of reports

If you’re looking to purchase a home built prior to the 1950s, you’ll want to inquire about its electrical wiring. Knob-and-tube wiring, which was popular from the 1880s to the 1940s, can cause electrical shocks and fire. Other issues to take note of include exposed wiring, ungrounded wire receptacles and paint on electrical outlets.

Photo: James Bombales

3. Windows – flagged in 18.4% of reports

While broken windows are a pretty obvious spot, your home inspector may conduct a simple test to check for air leaks. However, there’s no guarantee the home owners will agree to repair the window seals — some consider this cosmetic, rather than structural.

4. Gutters – flagged in 16.9% of reports

Your home inspector will want to make sure the gutters are in good working condition, assessing their size, any damage, and how far water is directed away from the house.

Photo: James Bombales

5. Plumbing – flagged in 13.6% of reports

Plumbing problems can quickly add up, costing an unsuspecting homeowner thousands of dollars. With a flashlight in hand, your home inspector will scan for potential leaks, polybutylene piping, DIY projects gone wrong, tree root damage, and more.

6. Branches overhanging roof – flagged in 13.3% of reports

Having an old-growth tree in your front yard might seem like a selling point, but it can actually cause a lot of damage if not properly maintained. Branches can rip off roof shingles, leaves can pile up and clog up your gutters, and heavy limbs can come crashing down into your living room.

Photo: James Bombales

7. Fencing – flagged in 12.6% of reports

Home inspectors will evaluate the condition of a fence that lines the property. But again, this is one of those “choose your battles” situations. Are you willing to risk losing out on your dream home because a few pickets have gone missing? Probably not.

8. Water heater – flagged in 12.2% of reports

While a rickety fence may be no big deal, a busted up water heater certainly is. Home inspectors check for things like water leaks, sediment buildup, corrosion on the pipes, and low water pressure.

Photo: James Bombales

9. Driveways, sidewalks, patios, entrance landing – flagged in 11.9% of reports

Cracks in your driveway or patio are pretty much inevitable. That being said, you’ll want the home inspector to ensure water isn’t seeping into those crevices. If major issues do turn up, you may be able to seek compensation for those repairs.

10. Air conditioning – flagged in 9.9% of reports

According to the Porch survey, most homebuyers negotiate only $500 for AC repairs, but the actual costs are much higher — think thousands of dollars, not hundreds.

Photo: James Bombales

11. Exterior paint – flagged in 9.6% of reports

If the house was constructed before 1979, your inspector will likely conduct a lead paint test. Additionally, if the exterior paint is peeling, some lenders (like the Federal Housing Administration and Veterans Affairs) will not approve the loan due to concerns over health and safety.

12. Foundation issues/cracks – flagged in 8.9% of reports

Home inspectors can look for obvious signs of foundation problems like cracks in basement walls, damaged bricks and uneven floors. If you and your home inspector suspect the problems are serious, you may want to bring in an engineer. But consider it money well spent — foundation fixes can cost $10,000 or more. Gulp.

Source: Livabl.com –  

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Crucial inspections coverage

“Whether you’re thinking of buying or selling, a home transaction can be an extremely stressful process,” said Jackie Chetcuti, head of Home Protection Solutions at FCT. “Buyers often fear that they may have to incur significant expenses soon after acquiring a home, and sellers may be hesitant to get an inspection at the risk of significant repair costs prior to listing their property.

“These products seek to reduce this anxiety by assessing over 400 features around the house through an

independent home inspection, and provide warranty coverage on a property’s larger, stress-inducing blind spots that are often expensive to fix.”

FCT is offering one product for buyers and another for sellers that offer comprehensive third-party home inspections with warranties that are transferable, and that cover up to $20,000.

Home purchases are usually characterized as the most expensive purchases of people’s lives, and with good reason. However, that could become compounded by something a home inspector might miss.

 

“When you go in as a buyer, you get a home inspector, but there’s not such a paradigm shift with a product like that because people are doing home inspections on the buy side,” said Chetcuti. “You get a full home inspection with over 400 points of data on the home, and that comes with a 21-month warranty.”

Real estate sales representatives, in particular, can save themselves headaches will unhappy clients by informing them about their different options, particularly if they’re millennials, she added.

“For a real estate agent, it’s important that people let their clients know that this is an option available in the market. It also provides more transparency around what people are buying,” said Chetcuti. “There’s a demand for information with millennials. A lot of the time, for a realtor with millennial clients, they’ll show up already knowing more about the house before you even take them through it. It puts the information out there before someone gets attached to a home and then finds something out about it.”

Source: Canadian Real Estate Wealth – by Neil Sharma 04 Jul 2018

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The Role of Appraisals How do the three main types of building appraisal work?

Whether it’s a retail strip plaza, a mall, an agricultural compound, a single family home, or an industrial building of 5,000 or one million square-feet, getting an appraisal is an important first step in any property acquisition process. In order to learn how to weight the importance of different factors when forming their opinion on value, registered appraisers go through a stringent examination process.

When determining the value of a property or building, there are several methodologies that qualified appraisers have to choose from, which are driven by the scope of the assignment and the property type.  The first is the ‘Direct Comparison Approach’; a methodology whereby the appraiser develops an opinion of value by analyzing completed sales, listings or pending sales of properties that are similar to the subject property. “Estimates of market rent, expenses, land value, cost, depreciation and other value parameters may be derived using a comparative technique,” explains Dan Brewer, President of the Appraisal Institute of Canada (AIC) and licensed mortgage and real estate broker.

Another methodology commonly adopted by appraisers is the ‘Cost Approach’, which considers the land and building components separately, and reaches a value conclusion by adding these estimates together to form an opinion. “Like the Direct Comparison Approach, the Cost Approach is based on a comparison of the cost to replace the subject (cost new) or the cost to reproduce the subject (substitute property),” Brewer says. “The total cost estimate is adjusted by deducting the accrued depreciation (i.e., physical wear and tear, functional deficiencies and external influences) of the dwelling and the site improvements (e.g., garage, deck, pool, etc.). The Cost Approach is most reliable when a property is newer due to the lower depreciation, although it’s generally not a weighted approach.”

The third methodology is the ‘Income Approach’, which is used to determine the valuations of income-producing properties. “Typically purchased as investments, the earning potential is an important element affecting the value of these properties,” says Brewer. “Through the Income Approach, the appraiser analyzes a property’s annual income and expenses to convert the net income into a present value. This methodology is typically not applied when valuing a residential property.”

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When Is Daylight SavingTime 2015?

alarm clock

So, when is Daylight Saving Time for 2015 (often called Daylight Savings Time) in the USA? On Sunday, November 1, 2015 at 2:00 a.m., set your clocks back one hour … or you could just turn your clocks back before you go to sleep in order to save yourself the hassle. Don’t worry about your cell phones because they reset themselves. If you’re out still partying for Halloween, many bars and restaurants are staying open that extra hour, which means another hour of fun, but you’ll have to check with your local establishments.

Sunrise will now be an hour earlier and Patch.com reports sunset will be at 4:53 p.m. now.

There are several states and areas that do not follow Daylight Saving Time and those include Arizona, Hawaii, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the US Virgin Islands. The state of Arizona (except for the Navajo Nation in the northern part of Arizona), unlike most of the rest of the United States, doesn’t observe Daylight Savings Time, and hasn’t for about 40 years.

So, where does Daylight Saving Time originate from? CNN reported:

The U.S. government started moving into and out of “Daylight Saving Time” during World War I to copy the Germans, who said they were doing it to save fuel. When the war ended, the U.S. government wisely repealed the law since it proved unpopular. During WWII, it came back — again with the notion that it would somehow conserve resources. After the second war, the U.S. converted factories from making bombs to making cars and consumer products. The GIs came home. But Daylight Saving Time just stuck around.

Even so, there are reports that versions of Daylight Saving Time started back in the 1800s:

New Zealander George Vernon Hudson proposed the modern idea of daylight saving in 1895. Germany and Austria-Hungary organized the first implementation, starting on 30 April 1916. Many countries have used it at various times since then, particularly since the energy crisis of the 1970s.

If you go to bed before 2:00 a.m., don’t forget to fix your clocks to avoid confusion when you wake.

Source: Published 9:46 pm EDT, October 30, 2015

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Mike Holmes: Get ahead of the season by thoroughly checking attic and roof before winter arrives

Ice damming on the roof can cause expensive damage inside the home, including water damage to ceilings, walls and even mould.

I recently got an email from a homeowner complaining about ice damming on their roof last winter. It was so bad it caused major damage to their ceiling — they even had to replace walls.

It’s a good time to review ice damming because if you can fix the problem now, before winter moves in, you could save yourself a ton of money and grief.

Most people tend to think that ice damming means there’s a problem with their gutters. Nine times out of 10, ice damming is not an eavestrough issue, it’s an attic issue.

If your eavestroughs are clogged with debris and leaves, water won’t drain properly. And once temperatures drop below freezing, all that trapped water and debris will turn into a frozen channel of muck. Next thing you know, you have ice damming all along your roofline, which can lead to water backing up underneath your shingles and getting into the roof structure, possibly causing water damage to the roof deck.

Then soon you’ll be looking at things like rot and mould.

That’s why fall maintenance must include clearing your eavestroughs of any debris now — because no one knows when temperatures will drop or how quickly.

But the real source of ice damming is usually heat loss in the attic.

Ice damming occurs when there is a constant cycle of snow melting and freezing. But snow shouldn’t melt when the temperature outside is below freezing, right? So what’s going on?

The snow on the roof is melting because heat is escaping through the attic, and as the water drains down the roof to the roofline, it refreezes because the overhang is colder.

Heat shouldn’t escape from your attic; it’s supposed to be a cold zone, the same temperature as outside.

To keep the attic a cold zone, it should be properly sealed off from the rest of the home with vapour barrier and a minimum of 12 to 15 inches of blown-in insulation. (Vapour barrier helps stop drafts and moisture from getting into places it shouldn’t.) It’s also important to make sure your vapour barrier is properly sealed with Tuck tape.

If any part of this system doesn’t work the way it should, problems such as heat loss, ice damming and even mould will occur.

Then make sure there’s enough ventilation, with fresh air coming in through the soffits and going out through the venting on the roof.

If any part of this system doesn’t work the way it should — for example, if the soffits are blocked by insulation, the vapour barrier isn’t properly Tuck taped or the venting on the roof is covered by snow — problems such as heat loss, ice damming and even mould will occur.

One homeowner tried to solve his ice damming issues by replacing the soffits. That didn’t work, so he asked if spray foaming the underside of his roof could help.

If you’re going to spray-foam your attic — and I love closed-cell spray foam — it should be applied to the bottom area of your attic space (or your ceiling, behind the drywall, if it’s a finished space) to properly seal off the environment below. And the great thing about closed cell spray foam is that it’s also a vapour barrier, so you get two in one.

Now is the best time to get a professional to come to your home to look at your attic and make sure it’s doing its job. I’d even recommend getting a maintenance inspection, because if you need any repairs before winter, especially to your home’s building envelope, you still have time to get the job done right.

Stay ahead of the game and make sure your home is ready for another round of winter weather. You’ll thank yourself later.

Watch Mike in his new series, Holmes Makes It Right, on HGTV. For more information, visit makeitright.ca

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