You are ready to buy a home, you have a great realtor, you are qualified for a mortgage, your lawyer is waiting to go, and you are looking for the home you want to live in. Before you actually find that home you have some more homework to do. You need to find a reliable and decent home inspector. In many states, once the contract is accepted you will only have a short time to get your inspections done.
A great home inspector not only does a complete and accurate inspection but he also writes a clear and succinct report. Your lawyer should be able to tell what the material defects are in just a few minutes. You should be able to understand how certain conditions of the home affect the value, desirability, habitability, or safety in the home. The search for such a valuable professional should not be done with a time limit of just a few days.
The home inspector will help you put into perspective how the conditions he finds will affect the value, desirability, habitability, or safety in the home you are looking for. Not all conditions will affect all buyers the same. Good home inspectors ask questions about you and how you will live in the home. A raised narrow walkway to the house may look great, but if your aunt in a wheel chair cannot navigate the walkway she may not visit as often. It is not always the material defects that will be important to you when buying a home.
If a qualified and licensed home inspector finds material defects to the home, the buyer can then ask for repair, replacement, or not buy the property at all. Some conditions of the home may not be easily repairable. For instance, a leaking skylight may not be repaired properly the first time, even with the best roofer you can find. You may need to live with this until it can be properly diagnosed and solved. You will not be told how to fix a defect but he inspector will give an opinion of the severity and where to look for help when solving the problem.
A good home inspector will tell you when he just does not know about a certain condition that he finds. If the home inspector finds that the basement walls are damp and relative humidity is high, he will be sure to write this up as a material defect, the home inspector may not be able to give an exact reason why. In this case the home inspector may give you some probably scenarios, but will tell you to have the condition further examined by licensed and qualified professional in the field. Now you can decide if you want to deal with this condition before you buy the home.
A good home inspector can and will put conditions together, as symptoms of a problem, and give a diagnosis when possible. Many problems in the home may display conditions that when put together properly will point to a material defect. This is where experience and knowledge of the inspector are critical.
It is not just about the material defects. The home inspector may find such problems as the stairway ceiling is lower than 80 inches. This could cause a head banging situation. If you son is six foot six, this may be a bigger problem to you and your family than other families. The distance of the spindles on an upper railing may be too far apart for safety of small children. This may be a problem if you plan on having small children in the home. Every condition in the home will affect the desirability and habitability of each buyer differently.
The home inspection report is almost more important than the inspection itself. This document will spell out how conditions affect the value, desirability, habitability and safety in the home. Your lawyer was not at the inspection, the report needs to clearly alert the lawyer to the salient points that will need his attention. Many times the report will point out a deficient condition and because it is not clear the lawyer does not address the problem before the close of escrow. A properly written report can save you money, time, and a future headache when buying a property.
A good home inspection will help the home buyer access their soon to be purchase with respect to value, desirability, habitability and safety. It could mean the difference between a purchase you can live with and buying a money pit. A good home inspection will give you information beyond just what is deficient with the home. If done properly a home inspection is worth the money.
Sunday, December 28, 2008
Saturday, December 27, 2008
About Termite Inspections
What are you actually buying when you purchase a termite inspection during the purchase of a home? It is not a guarantee that the home does not have an infestation of wood destroying insects. You are actually buying a visual inspection by a trained professional who will report any findings of wood destroying insects that may be infesting the structure. This includes but is not limited to termites, carpenter ants, powder post beetles, and wharf- borers. The inspector is looking for mostly indirect signs of pest activity that can adversely affect the value of your purchase. It is not often that live insects are found during these types of inspections. It is important to remember that the inspector should not use investigative tactics that damage the property in question. This means no drilling or ripping apart any parts of the home. So what is the inspector looking for? The following items are of major interest to the inspector when performing such inspections.
First the inspector will look for live or dead insects that may be in or around the outside of the structure. Second the inspector looks for frass. Frass is the shavings from wood destroying insects. Carpenter ants leave what looks like wood shavings jus outside of their nest. Powder post beetles leave a powdery frass when they damage wood. Finally termites leave an off color frass that more resembles saw dust. Third the inspector will concentrate his time in areas of higher moisture. Termites and carpenter ants need higher than normal amounts of moisture to stay alive. Finally the inspector will be on the lookout for unsound wood. Almost all insects that damage wood infest softer damaged wood instead of dry healthy wood.
When it comes to termites, the inspector will look for shelter tubes that the termites use to travel out of soil and into your home. In the case of Dry wood termites the inspector could also look for fecal pellets. These are sand grain type of droppings that would indicate infestation. Lastly, if you live in a southern state the inspector may also be looking for a Formosan termite. Once the inspector is finished with the inspection he will write up a report of findings.
The WDO report simply states if the inspector found visual evidence of infestation by wood destroying organisms. The inspector details what he has found with a report and a diagram. The inspector will then give his recommendation of treatment depending on his findings. In some cases the inspector will find evidence of recent treatment, in these cases he will generally recommend that the treating company records be called upon to find out the level and efficacy of the termite treatment. The report will not tell you the degree of damage that has taken place. You should understand most damage from termites is hidden damage that without taking the structure apart cannot be estimated. The biggest part of the report is the Obstructions and Inaccessible areas section of the report. This basically tells you all the things that were in the way of seeing wood destroying insects. Such things as floors, walls, floor coverings, furniture, insulation, stored items, and appliances will be listed as reasons why the inspector may have not found the critters he was looking for. There are at least 24 conditions that would not allow the inspector to find an infestation.
Some states allow salesmen to do the inspection for Wood destroying insects during the sale of a property. Really, do you want some guy who is dependent upon the sale of a pest control service to do this important inspection, if this salesman has not had a sale in a while anything could potentially be a termite or carpenter ant? Who is going to know? With just days to the completed sale, someone will agree to pay the $500.00 for a treatment. Never let a salesman do a low cost inspection, it will cost all involved in the long run.
Basically you are buying a professional opinion based on little to no evidence when buying a termite inspection. A true professional will tell you that just because he did not find visual evidence at the time of inspection does not mean that there are no problems with these pests in the structure. This is a very difficult inspection that is not paid well and in most cases done in less than 30 minutes. Because of these facts a salesmen can sell fear at the time of closing to force participants in the sale to buy unneeded services just before close. It is important to investigate reliable inspectors that do not profit from their findings.
First the inspector will look for live or dead insects that may be in or around the outside of the structure. Second the inspector looks for frass. Frass is the shavings from wood destroying insects. Carpenter ants leave what looks like wood shavings jus outside of their nest. Powder post beetles leave a powdery frass when they damage wood. Finally termites leave an off color frass that more resembles saw dust. Third the inspector will concentrate his time in areas of higher moisture. Termites and carpenter ants need higher than normal amounts of moisture to stay alive. Finally the inspector will be on the lookout for unsound wood. Almost all insects that damage wood infest softer damaged wood instead of dry healthy wood.
When it comes to termites, the inspector will look for shelter tubes that the termites use to travel out of soil and into your home. In the case of Dry wood termites the inspector could also look for fecal pellets. These are sand grain type of droppings that would indicate infestation. Lastly, if you live in a southern state the inspector may also be looking for a Formosan termite. Once the inspector is finished with the inspection he will write up a report of findings.
The WDO report simply states if the inspector found visual evidence of infestation by wood destroying organisms. The inspector details what he has found with a report and a diagram. The inspector will then give his recommendation of treatment depending on his findings. In some cases the inspector will find evidence of recent treatment, in these cases he will generally recommend that the treating company records be called upon to find out the level and efficacy of the termite treatment. The report will not tell you the degree of damage that has taken place. You should understand most damage from termites is hidden damage that without taking the structure apart cannot be estimated. The biggest part of the report is the Obstructions and Inaccessible areas section of the report. This basically tells you all the things that were in the way of seeing wood destroying insects. Such things as floors, walls, floor coverings, furniture, insulation, stored items, and appliances will be listed as reasons why the inspector may have not found the critters he was looking for. There are at least 24 conditions that would not allow the inspector to find an infestation.
Some states allow salesmen to do the inspection for Wood destroying insects during the sale of a property. Really, do you want some guy who is dependent upon the sale of a pest control service to do this important inspection, if this salesman has not had a sale in a while anything could potentially be a termite or carpenter ant? Who is going to know? With just days to the completed sale, someone will agree to pay the $500.00 for a treatment. Never let a salesman do a low cost inspection, it will cost all involved in the long run.
Basically you are buying a professional opinion based on little to no evidence when buying a termite inspection. A true professional will tell you that just because he did not find visual evidence at the time of inspection does not mean that there are no problems with these pests in the structure. This is a very difficult inspection that is not paid well and in most cases done in less than 30 minutes. Because of these facts a salesmen can sell fear at the time of closing to force participants in the sale to buy unneeded services just before close. It is important to investigate reliable inspectors that do not profit from their findings.
Wednesday, December 17, 2008
Will the Real Estate Market Rebound Soon?
The truth about the real estate market is that it will not rebound soon. In fact, we are quite likely to see the commercial side of real estate falter soon. Not many banks are willing to look at the fact that the commercial real estate market is under utilized. Many areas have less than 70% occupancy in their existing real estate holdings. No one cares that there is plenty of commercial real estate properties to buy or lease. The prospect of loaning huge multi-million dollar loans is too good to pass up. Those jumbo loans were real money makers for the banks and investors. Unfortunately, businesses can only move so many times. In some neighborhoods, many businesses are moving from one strip-mall to a newer one just down the street after only 3 years in business. The newer malls are giving away the leases just to have renters. Eventually, this market will fold also.
Read more at http://www.helium.com/items/1256687-will-real-estate-reboud-soon
The truth about the real estate market is that it will not rebound soon. In fact, we are quite likely to see the commercial side of real estate falter soon. Not many banks are willing to look at the fact that the commercial real estate market is under utilized. Many areas have less than 70% occupancy in their existing real estate holdings. No one cares that there is plenty of commercial real estate properties to buy or lease. The prospect of loaning huge multi-million dollar loans is too good to pass up. Those jumbo loans were real money makers for the banks and investors. Unfortunately, businesses can only move so many times. In some neighborhoods, many businesses are moving from one strip-mall to a newer one just down the street after only 3 years in business. The newer malls are giving away the leases just to have renters. Eventually, this market will fold also.
Read more at http://www.helium.com/items/1256687-will-real-estate-reboud-soon
In most of the country now is a prime time to buy a new home. It is important to research the market in your area to know when to buy. There is no one big real estate market. In Florida, there are many people who own second or third homes in what was a great wealth accumulating market. These people are just stopping to pay their mortgages and letting the banks deal with the mess. Now 7.2% of all Florida homes are in foreclosure. The national average is about 3%. For investors and vacation home owners it is strictly a business decision to stop paying the mortgage. None of these owners are going to the street. The wealthy are more likely to just walk away from a house. It is important to get to know your particular market.
Prices tend to be cyclical in any market. The bottom of the market may not be here yet but if you plan to be in the house for the long term timing the market for a home is not essential. Finding a home that you can afford and raise your family is what is important.
This is what you need to find out to buy in this market. First, What can I reasonably afford in regards to a mortgage, Remember that major items may break in your home and at least $2000.00 in emergency funds may be needed for repairs or system failures in your house. Second, find out your credit score. This is so important as your cost of the loan will be greatly affected by this score. Higher scores mean lower rates. Third, research what home prices are in your area. There are many sites that allow this such as Realtor.com, but if you want the most up to date information, joining a realtor's site can be of great value. This site is great for looking up homes, http://www.pattisdreamhomes.com/remaxil/index.asp?acc=36035. Belonging to a realtor's site you can keep in contact with a Realtor and when you are ready get a referral for a true real estate professional that will make buying a home easier.
The best way to ensure buying without loosing your shirt is to buy through a short sale. I am a big proponent of this. For these reasons. One, the home usually is not distressed like a foreclosure's would be. Second, after the offer is made and accepted, home inspections can still be performed. These inspections will help you find what affects the value, and livability in the home. If the home needs huge repairs, just walk away. This is much cheaper than buying a house with major problems. Even if market prices drop more you know you received a price lower than the market to start.
If you are financially ready. Now is a great time to buy. Stop renting and raise your family in a better environment. Buy below the market and know that in six more months you will be gaining equity and value in your home. Your overall tax bill from uncle Sam will also be lower, giving you more money. Owning a home is a better way to live.
Prices tend to be cyclical in any market. The bottom of the market may not be here yet but if you plan to be in the house for the long term timing the market for a home is not essential. Finding a home that you can afford and raise your family is what is important.
This is what you need to find out to buy in this market. First, What can I reasonably afford in regards to a mortgage, Remember that major items may break in your home and at least $2000.00 in emergency funds may be needed for repairs or system failures in your house. Second, find out your credit score. This is so important as your cost of the loan will be greatly affected by this score. Higher scores mean lower rates. Third, research what home prices are in your area. There are many sites that allow this such as Realtor.com, but if you want the most up to date information, joining a realtor's site can be of great value. This site is great for looking up homes, http://www.pattisdreamhomes.com/remaxil/index.asp?acc=36035. Belonging to a realtor's site you can keep in contact with a Realtor and when you are ready get a referral for a true real estate professional that will make buying a home easier.
The best way to ensure buying without loosing your shirt is to buy through a short sale. I am a big proponent of this. For these reasons. One, the home usually is not distressed like a foreclosure's would be. Second, after the offer is made and accepted, home inspections can still be performed. These inspections will help you find what affects the value, and livability in the home. If the home needs huge repairs, just walk away. This is much cheaper than buying a house with major problems. Even if market prices drop more you know you received a price lower than the market to start.
If you are financially ready. Now is a great time to buy. Stop renting and raise your family in a better environment. Buy below the market and know that in six more months you will be gaining equity and value in your home. Your overall tax bill from uncle Sam will also be lower, giving you more money. Owning a home is a better way to live.
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