Important Things To Know About Home Inspections

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector.

Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Source: RealtyTimes, RealtyTimes Staff
http://realtytimes.com/consumeradvice/buyersadvice1/item/47467-20160916-important-things-to-know-about-home-inspections

Home Inspections Must Be Totally Independent

You are about to sign a contract to purchase an older home. The real estate agent has given you the name of a home inspector, and has advised you to use the "specific inspection contingency" clause in the contract instead of the "general inspection contingency" clause. There is a major difference between these two concepts and it may cost you a considerable amount of money if you use the wrong one.

When ever you purchase a house -- especially an older one -- it is imperative you have the house inspected by a professional -- and independent -- home inspector. While you certainly are free to use the inspector recommended by the real estate agent, you should make your own choice.

You should include an inspection contingency in your sales contract. This would read something like this:

This contract is completely contingent upon purchaser obtaining, at purchaser's expense, a satisfactory home inspection, within ___ days from date of contract ratification.. If purchaser is not satisfied, for any reason, and advises seller in writing within said ___ days, this contract shall be null and void and purchaser's deposit shall be immediately refunded to purchaser. If purchaser does not notify seller within said ___ days, this contingency shall automatically expire and the contract shall remain in full force and effect.
This is known as a "general inspection contingency". Basically, if the buyer -- for any reason -- does not like the results of the inspection, the buyer can terminate the contract and the earnest money deposit will be refunded to the buyer. Indeed, many buyers are adding language in their purchase and sales contract to the effect that their deposit will not be cashed until after the inspection contingency has been removed.

The contingency recommended by the broker -- referred to as a "specific inspection contingency" -- is much more limited. Although different contract forms contain different variations on the theme, the thrust of a specific contingency is that if the buyer finds defects in the house, the buyer will give the seller three days in which to agree to make the repairs. Once the seller responds, the buyer then has one or two additional days in which to decide whether to accept what the seller is prepared to do, or to terminate the contract.

I oppose the specific inspection contingency, since I believe it is unfavorable to both buyers and sellers. From the buyer's point of view, if the house is structurally sound, but the roof, for example, has a short useful life, the buyer may not want to complete the transaction faced with a large expenditure two or three years down the road. However, since there are currently no defects, the buyer cannot get out from under the contract.

At first reading, the specific contingency appears to favor the seller, since it does not permit the buyer to terminate the contract for any reason. However, my experience is that when a buyer wants out of the contract at an early stage, it sometimes is better to terminate the contract at this early point in time rather than have continuous hassles all the way through to settlement.

Why should a home seller permit the buyer to inspect the house? While sellers may think that an inspection is not in their best interests, if you really stop and think about it for a moment, it should become obvious that even from the seller's point of view, it is advisable to let buyers have a short period of time in which to cancel their contract if they are not satisfied with the condition of the house.

Clearly, sellers would rather have their purchaser cancel the contract early in the process than wait until the very last minute and raise all sorts of problems on the day of settlement. From my own personal experience, this is a common problem at a real estate settlement where the buyers really do not want to complete the deal, but know they are legally obligated to do so.

Of equal importance, if the purchaser has obtained a satisfactory home inspection report, that same purchaser will be hard pressed to raise issues about the house on the day of settlement. Often, I have heard sellers tell buyers, "You removed the inspection contingency, and if you have a problem with our house, look to your home inspector."

Souce: RealtyTimes, Benny L. Kass 
http://realtytimes.com/consumeradvice/buyersadvice1/item/45329-20160616-home-inspections-must-be-totally-independent

How to Back Out of Buying That Home

Once home buyers find a place they adore, they tend to champ at the bit to seal the deal and move in. And yet every so often, they encounter a hitch that makes them think twice. Maybe more than twice, actually. It probably makes them lie awake in bed in a cold, sweaty panic and think: Oh my God, I’ve made the worst mistake of my miserable life. Is there any way I can wiggle out of this without losing my shirt?

The thing is, once a seller accepts your offer, odds are you’ve also ponied up an earnest money deposit—the cash you put upfront (typically 1% to 2% of the purchase price) to show the seller you’re serious (aka “earnest”) about the deal. You might be thinking that once that money leaves your hands, it’s gone for good if you decide not to follow through. That’s not necessarily the case.

Contingencies and legal protections abound that enable home buyers to back out of a deal. Some you’ll want to include in your initial purchase contract; others you don’t need to request outright and are just your legal right. So if you’d like to keep your options open, make sure to keep these “get out of jail free” cards up your sleeve.

Home inspection contingency

With professional staging, fresh paint, and gorgeous weather (“look at all that natural light, sweetie!”), a home can show beautifully—but that doesn’t mean everything’s kosher below the surface. “You can’t necessarily tell if there are issues with a home just by walking through it or going to see it at an open house,” says Peggy Yee, a supervising broker at Frankly Realtors in Vienna, VA.

If you’re concerned the basement may flood or faulty foundation may land you with expensive repairs, your best protection is to include a home inspection contingency in your contract, which will typically enable you to get out of the deal without forfeiting your earnest money deposit. However, “when you have a home inspection contingency, you’re on a deadline,” warns Danielle Zoller, a real estate attorney at Gordon Feinblatt LLC in Baltimore.

Home inspection contingencies are often set on a seven-day timetable—meaning you, the buyer, must complete the inspection and send a formal notice to the seller that you’re canceling the contract within seven days after signing the purchase agreement.

Be sure to cover your bases. “Some states require that the buyer also send a copy of the inspection report,” says Zoller. Also, some home inspection contingencies let the buyer walk for any reason, but depending on the contract, “you may have to give the seller an opportunity to make repairs before you can terminate the contract.” Zoller says.

Home sale contingency

If you already own a home, odds are you will want to sell it if you’re buying a new one. And luckily, there’s a contingency you can put in your sales contract for this as well. If the seller agrees to a home sale contingency, the purchase of the property can take place only if you sell your home by a specific date (e.g., within 30 days).

Because selling a home can take a while, make sure that the time frame you set is realistic. Look at how quickly similarly priced homes in your area are selling. If it’s a hot market, a month’s time may be fine; however, if places are on the market longer, you may want to widen that window. At the very worst, if your home gets no offers in that time period, you can simply back out.

HOA documents

When purchasing a condo or a property within a homeowners association, the seller must provide you with the subdivision’s Declaration of Covenants, Conditions, and Restrictions, or CC&Rs—legal language for the community’s rules and regulations.

These documents include the bylaws, board minutes, reserve funds, master insurance policy, annual budget, a history of special assessments, and what constitute finable infractions.

Depending on the age of the community, you might very well receive hundreds of pages. And some of those rules may not sit well with you: Some HOAs, for example, may have final say over the color you choose to paint your home’s exterior, or ban you from placing political signage in your lawn. (So what the heck are you going to do with all those “Chris Christie 2016: Telling It Like It Is” signs?)

You’re legally entitled to a specified number of days to review the documents, but review periods vary by state. In Maryland, for example, buyers are given seven calendar days; in Virginia it’s three days; and in Washington, DC, it’s three business days.

“Your real estate agent should know how many days you’re allowed,” but it’s always best to confirm the information on your own, says Zoller. (If your Realtor® is licensed in multiple states, the person may mistakenly confuse one jurisdiction’s review period for another.)

The best part: You don’t even need to cite a reason why you’re canceling the contract. As long as you give the seller notice during the review period, you’re allowed to withdraw your offer, keep your deposit, and move on.

Source: Realtor.com, Daniel Bortz
http://www.realtor.com/advice/buy/back-out-of-buying-home/?iid=rdc_news_hp_carousel_theLatest

What Is Due Diligence? Find Out What to Do Before Buying a Home

Once you make an offer on a home and it’s accepted, there’s a period lasting a few weeks before you close the deal. During this window of time, buyers are often told to “do their due diligence” on the home they soon hope to own. But just what is due diligence, anyway?

In the world of real estate transactions, due diligence is a fancy term for “do your homework.” Before buying a property, you should fully investigate it for potential problems that could cost major money to fix after you’ve moved in.

“Due diligence in residential real estate means [making sure] you’re getting the asset you’re paying for,” says Larry Anweiler, an Arizona real estate broker who teaches real estate at Kaplan University.

Think of this as your last opportunity to kick the tires, turn on and off all the lights—and generally make sure you’re not getting a lemon. And if you do find flaws, you’ve got time to negotiate with the seller, who could help you fix them or lower the home price. Or, if the seller refuses, you are free to walk away from the deal—and as long as you’ve placed some contingencies in your contract, you won’t have to forfeit that hefty deposit.

Due diligence is definitely worth taking seriously, so here’s a checklist of what you’ll want to scrutinize before closing the deal.

A home inspection

Most home buyers hire a home inspector to scrutinize the house top to bottom, looking for problems that could cost the buyer major money to fix. The inspector is looking for a crumbling foundation, faulty HVAC systems, termites, leaking roof, and other potential big-ticket problems.

You should also hire a separate professional to test for biotoxins, including mold, radon, and asbestos. These hazards are typically not checked by a home inspector and are expensive to fix. You should also check for larger neighborhood issues that could have an impact, like whether your home lies in a flood zone or near some environmental hazard. These can all be reasons to reopen negotiations with the seller and, if you’re not satisfied, prompt you to walk.

A title search

Before you can “take title” to the home—a fancy way of saying you establish legal ownership of the property that’s entered into public record—you’ll want to do a title search to make sure you can indeed do that, free and clear.

For instance, what if the previous owner’s long-lost brother shows up claiming he owns the property, or a creditor has placed a lien on the home due to unpaid debts, or there are unresolved boundary disputes with a neighbor? Such problems can be costly to address, and a title search will bring them to light so you can broach these issues with the seller before you inherit a problem you don’t want to have.

Condo or HOA rules

If you’re buying a condo or property within a homeowners association, you’ll want to thoroughly review its declaration of covenants, conditions, and restrictions, or CC&Rs. Basically this is the list of rules and regulations, as well as fines for infractions. Some can be quite strict, reserving veto power over the color you paint your home or the number or type of vehicles you can have in front of your house (RVs are sometimes banned).

Given these are rules you’ll be living under for the foreseeable future, it’s wise to review them and make sure you’re on board—and if not, you can back out with your deposit in hand.

Source: Realtor.com, Lisa Kaplan Gordon
http://www.realtor.com/advice/buy/what-is-due-diligence/?iid=rdc_news_hp_carousel_theLatest

Sneaky Ways to Check for Problems in a Home Before You Buy

Savvy home buyers know that when they’re checking out a house, they should kick the tires—or maybe the floorboards, bathtubs, and walkways—to ensure everything is in working order and they don’t end up with a housing lemon. Sure, you’ve probably heard that you should turn on the shower to check the water pressure. It’s true! But there’s way more you can do to avoid an unpleasant surprise later on that may require expensive repairs.

Take your sneaky investigative skills to the next level with these quick and easy expert tips to see if a home is actually worthy of an offer.

Use your marbles

Here’s a simple (and fun) tip to find out if the floor is tilted: Place a marble on the surface, and see if it rolls.

“Sloping floors could be signs of a charming old house or a more serious condition with the foundation,” says Randy Sipe, president of the American Society of Home Inspectors. In other words, proceed with caution and have this vetted by a home inspector before you get too serious about this place.

Snap pics of serial numbers

Whip out your smartphone and snap pictures of the serial numbers of large appliances, then Google them later for details. In particular, you can learn how old they are—something that otherwise might not come out until disclosure. You might be amazed.

Note: A water heater’s number is right on front; ditto for a furnace or HVAC unit.

Look up

No matter how thoroughly you ogle the kitchen and closet, don’t forget to also look up.

“Inspect the ceiling for water stains, which are signs of a leaky roof,” says Sipe.

A fresh paint job should also set off your internal alarms, since paint can do a fine job at hiding water stains underneath. Go ahead and ask if there’s been any water damage; homeowners in most states must disclose many underlying problems. It’s the law.

Open, close, repeat

“Open and close doors to see if they shut smoothly or bind and don’t latch, indicating signs of excessive settlement,” says Sipe. Off-balance door and window frames—the cause of sticking—are classic signs of a possible foundation problem.

Go outside and walk in a circle

While it’s tempting to spend all your time checking out the inside of a house, make sure to check the outside, too.

“Water damage can lead to expensive repairs and mold infestation,” says Ryan Larsen, a civil engineer at NDS and known as “Dr. Drainage” on his YouTube video series. “Home buyers need to ensure that drainage is sufficient on any property.”

Larsen suggests checking to see if the ground directly adjacent to the foundation slopes away from the house, or toward it. Grading that slopes toward the home could lead to damp crawl spaces, structural damage, and toxic mold. Next, find the rain gutter downspouts. Do they drain directly to the ground, and is there a low spot for water to collect near the home? If so, “there’s a good chance there’s water intrusion somewhere.” Downspouts should carry water at least 10 feet away.

Whip out your credit card

All foundations include a few tiny cracks, but which ones are really worth worrying over? Sipe offers this insight: “Look at the foundation for any cracks larger than the thickness of a credit card, which could signify water leakage. Pay special attention to corner areas, since cracking there may be signs of movement, which may require repair.”

Open the curtains

“Oftentimes a window is foggy from condensation if the double-pane window seal is defective and leaks,” says Realtor® Judy Chin.

Touch the walls

Ease your water seepage concerns by heading straight to the basement and checking the base of walls for water marks. If there’s a lot of moisture, the walls may even feel a bit soft.

Take some video footage

Can’t fit into a small crawl space or cramped attic? Deb Tomaro, a Realtor in Bloomington, IN, advises potential buyers to at least stick their arm in and videotape the area with their phone. “Then you can download the tape onto a computer and zoom in to get a good look.”

Arm yourself with a few apps

Apps abound that can help when checking out a house. For instance, did that ad say “sun-drenched master bedroom,” but you’re visiting in the evening or on a cloudy day? Don’t take their word for it; download the Sun Seeker app, which will tell you when (and if) certain rooms will get sunlight throughout different times of the year.

Is the home in dire need of a paint job or refinished floors? The Handy Man app will calculate how much you’d have to spend to redo a floor or paint a room. That way, you have a sense of how much these renovations will cost and can plan accordingly.

Source: Realtor.com, Margaret Heidenry
http://www.realtor.com/advice/buy/sneaky-home-buyer-checklist/

How to Spot the Top Problems Home Sellers Try to Hide

Whether you’re a seasoned house hunter or a first-time buyer, the process of purchasing a home has plenty of pitfalls. And while you may assume that sellers are being upfront, it’s not uncommon for them to gloss over some of their home’s shortcomings.

“All homeowners sign a disclosure document about their property so buyers know what they’re getting into; however, it can be very tempting for some to tell white lies or conveniently forget facts,” says Wendy Flynn, owner of Wendy Flynn Realty in College Station, TX. “In fact, a very large number of real estate lawsuits stem from owners misrepresenting their property.”

So, just to be on the safe side, here are some common cover-ups and how you can crack them.

Water damage

Water stains aren’t just ugly; they’re also signs of leaks, and a breeding ground for mold. And they’re fairly easy for homeowners to hide with strategic decoration or staging, according to Frank Baldassarre, owner of Ace Home Inspections on Staten Island, NY.

“Many sellers try to conceal water intrusion in the basement, for example, with a pile of cardboard boxes or suitcases,” he says. You could always ask the homeowner to move the furniture a few inches and shine a pocket flashlight around. If the home has obvious red flags (an odd odor or visible wall cracks), it’s not unreasonable to request removing a large picture frame to take a peek at what’s behind it.

Another popular tactic for concealing water damage: a coat of fresh paint.

“Always ask the homeowner when they last painted,” says Baldassarre. “If it was a year ago, they’re probably not trying to hide water stains.”

A contaminated backyard

If you’re looking at an older home—specifically, if it was built before 1975—odds are it used to run on oil. Back then, homeowners typically had large oil tanks installed in the basement or underground in the backyard to conserve space and maintain the home’s aesthetic.

“The problem is that oil can contaminate soil, and because it’s incredibly costly to remove, some people try to hide evidence of the tank,” says Baldassarre. “Recently, I arrived to a home inspection early and caught the homeowner sawing off the top of the fill pipe.”

So while walking through a home’s backyard, look for a small fill pipe sticking up from the ground (sometimes covered by patches of grass), a dead giveaway that an oil tank is on the premises. Or double-check by asking the seller if the home was heated with oil in the past.

A shaky foundation

If the paint job in a home looks a little uneven around the door frames or windows, take a closer to look to see if it’s concealing any jagged cracks in the wall, advises Flynn. Those zigzags can signify foundation problems, a costly and potentially dangerous situation for potential buyers.

A weak foundation can prevent cabinets and doors from closing, cause supporting beams to snap from stress, or even result in a poor home appraisal, which can affect your loan and the home’s resale value.

Another clue that the house has a weak foundation: “if you feel as though you’re suddenly walking up or down—even slightly—as you move through the home,” says Flynn.

Problem neighbors

Barking dogs, rocker teens, and blaring horns are all factors that can turn off potential buyers. That’s why some owners try to downplay these situations with well-timed open houses and neighborly negotiations.

“Homeowners have an obligation to disclose what are called ‘neighborhood nuisances,’ but if they don’t, buyers have to rely on their word,” says Carrie Benuska, a Realtor® at John Aaroe Group in Pasadena, CA. “I know people who have asked their neighbors to keep noisy dogs inside during showings or only open their homes during strategic times of the day.”

Even well-intentioned owners may not be candid if they’ve become accustomed to their environment. One workaround, suggests Benuska, is for buyers to take a stroll around the neighborhood at different times of the day to get a more authentic feel for the area. And don’t hesitate to make small talk with the locals, who can offer a more objective view of their surroundings.

Weird temperature changes

Anyone who’s lived in a home with a freezing bathroom or unusually warm bedroom knows that a temperature imbalance can result in avoiding a room altogether. That’s why tapping into your senses is key when viewing your potential new home.

“If you walk into a room and there’s a subtle shift in the atmosphere—maybe the air feels dry or damp—ask the owner what the room feels like throughout the seasons,” says Benuska. “The culprit is usually poor insulation, sometimes as a result of the owner adding a second room or floor to the home.” Oftentimes, an owner isn’t trying to outright conceal extension work. However, if the construction was done without a permit—“more common than you’d imagine,” says Benuska—you aren’t required to pay for the extra square footage.

Source: Realtor.com, Elise Sole
http://www.realtor.com/advice/buy/hidden-home-problems/

How Buyers Should Prepare for Their Final Walk-Through

I always insist that my buyers accompany and perform a final walk-through inspection of the property they are buying.



The final walk-through in real estate was designed so that the buyer can confirm the home is in the same condition as when they made their offer and had the home inspected. Its also an opportunity to make sure the seller has actually vacated.

From time to time, a buyer and seller will have negotiated any number of fixes during escrow. The walk-through gives the buyer a chance to make sure all the agreed-upon work has been done to specifications, and that everything is in working order.

Sometimes, buyers are so excited to close that they quickly whisk through the walk-through without taking time to inspect the property. This can lead to small issues once the buyers take ownership. On the other hand, the final walk-through can raise both positive and negative emotions during this final part of the sale process.

It’s smart to take the walk-through seriously. Don’t see it as simply checking a box.  You should run all the faucets and check for leaks. Flush the toilet bowls, open every window and close it and make sure the appliances work.

Here are some tips for buyers to help complete a smooth and effective walk-through.

Don’t do the walk-through the day of closing

A walk-through can uncover repairs that need to be made, but that you didn’t know about before. If you do the walk-through the same day as the closing, there may not be time to get problems remedied.

It’s not uncommon for two walk-throughs to happen. The first identifies some issues for the buyer, and the second makes sure those issues were addressed.

The alternative is to push the closing back to address the issues.  The problem here is that your lender may not have approved a delayed closing. It’s better to hammer out any issues in advance.

Use your mobile phone to check the outlets

Plug a phone into all of the outlets to make sure the electricity works. You want to avoid moving in all your stuff, only to realize some outlets don’t work, and you lack light in a bedroom.

Bring your phone and charger to the walk-through and test all the outlets. It’s quick and easy.

Be on the lookout for the sellers’ leftover belongings

Sellers are notorious for leaving junk behind, so take the time to check the garage and attic, and under the deck. The sellers may just assume you want their old paint cans or a propane tank for a future grill.

In fact, they should leave the place completely empty. Some left-behind items, such as the paint, can be toxic or require special provisions for disposal. For example, one seller left behind all kinds of used oil that needed to go to a certain, state-approved car repair shop to be disposed of properly. These unwanted items become yours after you close.

Be emotionally prepared for a surprise

Buyers often fall in love with a home that’s full of furniture, art and belongings. They see it as a home, and remember a warm feeling.

Fast-forward to the close of escrow and you’re faced with an empty home, which can feel cold, sterile or hollow.

Buyers are often surprised by how they feel entering an empty home. Not only is it absent any furniture and “stuff,” but sometimes an empty home shows its imperfections, too.

The sun may have slightly bleached floors, showing the outline of a rug. There may be carpet stains or holes in the wall from a flat-screen TV or paintings. An empty home tends to show poorly, so prepare yourself before the walk-through.

The journey toward homeownership is often a long one, filled with lots of excitement and ups and downs. The final walk-through is one of the very last steps of what could be a multiple-year process.

Consider the walk-through in advance and prepare for it mentally, emotionally and physically. Know what you want to look for, have a checklist, and keep your emotions and feelings in check. Doing so will make for a smooth ride to the close of escrow.

Source: Zillow Blog, Brendon Desimone
http://www.zillow.com/blog/final-walk-through-153502/

Is your house literally making you sick?

My House Is Literally ‘Making Me Sick’—What Can I Do?

Q: I have been living in my townhouse less than one year and have recently found out that I have a high level of mold in the house. I had the property inspected by a professional building inspector before purchase and there was no indication of this problem on his report.

The house is literally “making me sick” and I have been advised (by doctors) to move out.  My questions are:

How can I put this home up for sale?

How much can I expect to pay to have the mold removed?

Should I pursue litigation with an attorney to recover my losses?

A: This is unquestionably an alarming situation to be in. But before you make any decisions regarding litigation, make sure to get a second opinion on the mold. Bring in a third home inspector—yes, a third—and make sure you know exactly how much mold you have and where it’s originating.

But keep this in mind: The fact that your initial home inspection didn’t indicate mold isn’t necessarily indicative of an unreliable home inspector. Inspectors are trained to look for conditions surrounding mold, but not mold itself, says Kevin Minto, president of Signet Home Inspections in Grass Valley, CA.

A routine inspection might indicate that a home has the proper conditions for mold growth such as waterlogged areas or spots with high cellulose content.

And, if mold was found, the inspector should have referred you to a qualified mold professional for assessment and remediation options. Bottom line: If the mold isn’t presenting visually, your inspector might miss it. But that also means it’s probably not a serious mold problem.

How to determine who—or what—is to blame

Unfortunately, there’s no good way to determine if the mold was present before purchasing your home—meaning litigation is unlikely to be a fruitful avenue. Plus, in the right conditions, mold takes just 48 hours to propagate.

“What is to say this mold infestation didn’t occur after the home inspection was completed?” Minto asks.

And another caveat to keep in mind: Even if the problem is as old as the house, it simply might not have affected the previous homeowners.

“All homes have mold to some degree,” Minto says. “Acceptable levels of mold are not the same for everyone as some people are far more sensitive than others.”

Unless you can uncover direct evidence the previous homeowners knowledgeably hid the mold problem, there’s not much you can do.

Since you live in a townhome, your neighbors may offer some clues. They may also be suffering—or even causing the mold.

Neighbors who cook with a lot of steam and don’t vent their kitchen properly can add significant moisture to the home, according to Larry Stamp, owner of Cameo Home Inspection Services in Olympia, WA.

Options are ‘limited’

We also recommend getting a second opinion from another doctor.

“You have to kind of be a little skeptical of the diagnosis as well,” says Stamp, who’s also a former nurse. “Mold illness is a very difficult thing to diagnose.”

But assuming you do have mold—and it is making you sick—your options are still, unfortunately, limited: Anything you do will require removing the mold, which can vary widely in cost depending on your location and the extremity of the infestation. You might be able to get away with simply cleaning the area, which can cost under $200.

But if it’s traced to a fundamental problem in your roof or foundation, removal costs can quickly climb into the thousands of dollars.

Even if you want to sell the house, you’ll be forced to remove the mold beforehand—or risk selling at a loss.

But there is some (sort of) good news.

“Keep in mind that everyone is not equally sensitive to mold and the problem may not be as bad as perceived,” Minto says.

Source: Realtor.com, Jamie Wiebe
http://www.realtor.com/advice/sell/my-house-has-mold-that-is-making-me-sick-what-can-i-do/

My Home Passed Inspection, So It’s Perfect, Right?

Home inspectors are skilled at sniffing out wood rot and locating cracks in foundations. But even the most experienced inspectors can’t tell you about problems that lurk behind walls, between floor joists or inside sewer lines.

“The purpose of a home inspection is to find material defects that might have an adverse effect on the value of a home or its safety,” said Curtis Niles Sr., president of Armored Home Inspections in Pottstown, PA, and past president of the National Association of Home Inspectors. “We do that through a visual inspection, and we do it to the best of our ability. But we can’t find every single problem; no one could.”

A home inspection can help ensure your new home is both a good investment and a safe place to live, but it’s important to be aware of some key defects that can go undetected:

HVAC deficiencies

Problems with heating, ventilation and air conditioning systems (HVAC) can be difficult for home inspectors to uncover. Many inspectors are hesitant to run the air conditioning in extreme cold or to check the heat on a hot day because they don’t want to damage the unit by running it too long in adverse conditions.

“I can tell if a unit isn’t working, but I don’t have time during a home inspection to determine if the system is adequate for the house they’re trying to heat or cool,” Niles said. If you have concerns about the HVAC system, you may want to have it checked by a licensed HVAC specialist – separate from the home inspection.

Water damage, leaks


Your inspector will turn on faucets, but if a house hasn’t been lived in for a while, any previous water damage may be dried up and it will take a few days of use before leaks reappear. Even damage to walls or ceilings can be camouflaged by paint, making them difficult to detect.

If a faulty roof is the source of the leak, there’s a good chance your inspector won’t find it. Many inspectors visually assess roofs from the ground, but don’t go up onto them. Even if your inspector climbs onto the roof, snow, ice or fallen leaves may make it difficult to examine.

Environmental toxins

In 1978, the federal government banned the production of lead paint and asbestos-based construction materials. If the home you’re purchasing was built prior to 1978, you may want to invest in specialized testing for these toxins. Elevated radon levels, which can also be detected by a qualified radon tester, can occur in any home, regardless of its age, foundation type, location or heating system.

Lead paint, asbestos and radon can pose significant risks, but they’re not the sort of issues most home inspectors test for. If you are aware of these toxins before closing, you can ask the seller to help pay for abatement, containment or removal – and those costs can be significant. According to the Environmental Protection Agency, professional lead-based paint removal, for example, costs $8 to $15 per square foot – that’s $19,200 to $36,000 for a 2,400-square-foot house.

Blocked, damaged sewer lines

Property owners are responsible for the sewer line that runs from their home to the city main, and the best time to find out if that line is blocked or needs replacement is before buying a home – not after. A sewer line clog could lead to raw sewage backing up, out of the drains.

A standard home inspection will likely determine the type of drain pipe used and estimate its age but, it won’t cover the structural integrity or condition of sewer lines. If the home you’re thinking of buying is more than 20 years old, you may want to pay for a separate sewer scope to ensure the sewer line is in good shape and that tree roots have not worked their way into the line. Expect to pay $250 to $500 for a video sewer inspection, a fraction of the cost of sewer line replacement, which can run upward of $25,000.

An experienced home inspector can provide important information about the condition of the house you plan to buy, but to avoid unexpected costs after closing, you may need to go beyond a standard home inspection. Those extra tests and inspections won’t come cheap, but they may help you avoid unpleasant surprises later on.

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Source: Zillow Blog, Mary Boone
http://www.zillow.com/blog/what-inspector-may-miss-178223/

Inspecting the Inspectors

This article is written more for Realtors, but I think it is valuable for homeowners in general who need to higher a property inspector for whatever reason. In my business as a Realtor, I've worked some really great inspectors who will take their time and really, really inspect the property and write and a clear, thorough and comprehensive report, and I've worked with other inspectors that just breezed through the inspection and wrote a crappy report that left my clients with more questions than answers. So the bottom line people, make sure you higher a good inspector.



Mold and rot eating away at supporting beams, problems with the electrical system, plumbing issues... It’s the stuff of nightmares, but for many home owners, it’s a reality. Sometimes, undetected damage can be dangerous. Did you hear the one about the buyer who fell through the floor on move-in day when the rotting surface collapsed?

Fortunately, a thorough home inspection can help to uncover hidden damage and shine some light on potentially costly future repairs. But home inspections aren’t just completed to keep the buyer safe — they can help to protect the real estate professional too. Informed buyers are more likely to be satisfied with their purchase and, as a result, they’ll be far less likely to come back to haunt you after the sale closes. If you’re like most agents, much of your business is based on referrals. A satisfied client who feels dealt with honestly and fairly will be far more likely to send others to you, even if in the end they decided not to go through with the sale.

Smart real estate agents know the importance of maintaining a list of qualified home inspectors to give to clients who ask. Having some “pre-inspected inspectors” on hand is an excellent way to help ensure that your clients will be happy with their purchase.

But how do you compile this list? Make sure the inspectors that you recommend are professional and qualified, will do a thorough job, and won’t be afraid to crawl under the house to make sure the floor isn’t about to cave in! Here are nine questions that can help you to thoroughly evaluate a home inspector.

1. Are You Licensed?
A handful of states don’t have any licensing requirements at all, so it’s worth checking to see if your state requires licensing. If there are no licensing requirements, you’ll want to spend some more time looking closely at other qualifications, including training and experience.

2. Which Professional Associations Do You Belong To?
Affiliation with a national or state association of home inspectors isn’t a guarantee of professionalism, but it’s certainly a good sign. These associations often require that members keep up-to-date with training and certification. Reputable groups to look for include the National Association of Home Inspectors (NAHI), the American Society of Home Inspectors (ASHI), and the International Association of Certified Home Inspectors (InterNACHI).

3. What Are Your Credentials?
Read up on the home inspector’s qualifications, and find out where they received their training. There are a number of professional organizations that provide credentials, including ASHI and NAHI. Watch out for those who claim a “company certification,” or any type of “in-house accreditation system” that’s not subject to overriding industry standards.

4. How Much Experience Do You Have?
The NAHI and ASHI require a minimum of 250 inspections. It’s important to note though, that many industry professionals say that finding someone who has performed at least 1,000 inspections and has three to five years of full-time experience is important. When browsing the home inspector’s website, watch out for wording designed to make it look like they have more experience than they actually do. Remember, “industry experience” doesn’t necessarily mean experience actually inspecting homes.

5. Are You Insured?
Even the best inspectors can make mistakes. It’s important to ask for proof of insurance for both errors and omissions and general liability. Always avoid inspectors who aren’t insured, and watch out for inspectors who severely limit their liability coverage. Some inspectors will only reimburse the customer for the cost of the inspection.

6. What’s Your Policy?
Ask about their policy involving problems that should have been picked up on in the inspection. Does the inspector stand by the report? Do they offer any guarantees? Some home inspectors offer optional 90-day warranties that will help cover repairs or replacement costs. Be sure to check into such offers, paying special attention to the fine print and exclusions.

7. What Are Your Customers Saying?
Head online to see what their past clients are saying. Many home inspectors have client reviews on websites such as Angie’s List, Yelp, and Google Plus. You can also check the Better Business Bureau to see if there are any complaints made against the inspector.

8. Are You Able to Provide a Sample Inspection Report?
This will help you to gauge how thorough their inspections will be. Most reputable home inspectors will be more than happy to provide you with one if they don’t already have one proudly displayed on their website. A home inspection report should look something like this.

9. How Long Will Your Inspection Take?
Often, you can evaluate the diligence of an inspection by how long it takes. According to ASHI, a home inspection can take two to four hours or longer, depending upon the size of the home. Specific guidelines governing what must be examined during home inspections exist in only around half the states in this country. Watch out for inspectors who offer “specials” for one-hour inspections—anything less than two hours may be an indicator of a less-than-thorough job.

Also, it’s a good idea to maintain a full list of recommended inspectors, rather than just one or two. This approach drastically reduces your risk of liability and provides your clients with the opportunity to choose their own inspector. Real estate law professionals recommend avoiding verbal referrals whenever possible, instead providing clients with a written list of three to five service providers.

By taking the time to compile a list of inspectors, you’ll be doing your clients a tremendous service and providing them with a valuable resource. You’ll also be establishing yourself as someone who can connect clients with professional help throughout the real estate transaction.


Source: RealtorMag, Brenton Hayden
http://realtormag.realtor.org/law-and-ethics/feature/article/2015/05/inspecting-inspectors?om_rid=AAFmZk&om_mid=_BVdcaTB9CahVMK&om_ntype=RMODaily

New Homes Need Inspections Also

NEW HOMES NEED INSPECTIONS ALSO

Question: We are looking to buy a new home from a builder. We like the neighborhood and the price has been reduced to make it very attractive. Additionally, the builder is throwing in a number of extras, including paying all of our closing costs.

However, we do not know this builder's reputation, and would like to have the home inspected before we go to closing. Is this possible?

Answer: In today's buyer's market, most anything is possible, and I think it's a very good idea. However, builders often reject such arrangements, for a number of reasons. Some builders claim that this will void their insurance policy and are afraid that someone will get hurt during the inspections. Other builders don't want their employees bothered by too many questions from the inspector, while other builders just say that "we will provide you with a house that has been approved by the county inspectors, so you do not have to worry."

But you are correct in worrying. According to Frank Lesh, former president of the American Society of Home Inspectors (ASHI), "even new homes have defects that only a professional can detect".

Keep in mind that in many counties, the government inspectors are busy and do not have time to carefully look at all aspects of the new home. Often, by the time the county inspector makes a site visit, your builder may already have put up the drywall, thereby covering up the electrical and the plumbing.

I have been involved in a number of new home warranty issues, many of which could have been avoided had the buyer been given the right to inspect the new home as it was being built. In one case, the new homeowner kept hearing pipes knocking every time the upstairs bathroom sink was turned on. The homeowner forced the developer to open up the walls -- at the developer's expense -- and found that some of the plumbing pipes were not properly affixed to the wall. The building inspector that the homeowner retained -- after the house had been completed -- determined that this was what he called "water hammer".

Indeed, in this case, the builder acknowledged that had there been a periodic inspection, the problem would have been detected earlier, at a significant cost savings to the builder.

ASHI recommends a three-pronged inspection: prior to the pouring of the foundation, prior to insulation and drywall, and finally prior to the final walk-through.

You should tell the builder that you want the right to have an inspector of your choice -- and at your expense -- to conduct these three inspections. The sales contract you sign should spell out this right in clear terms.

There are many components involved in a new home -- such as the roof, the foundation, the electrical and plumbing and the heating and air conditioning systems. I recently heard of a situation where a homeowner complained that the new house was not being adequately cooled, and when a professional inspected the system, he discovered that the builder had made a mistake. The system that was designed for a smaller house was accidentally installed in the house that was inspected.

Once again, the developer had to spend a lot of money correcting the situation -- money which could have been saved had there been periodic inspections.

It often amazes me that when consumers buy a new car, they inspect it carefully, even to the point of kicking the tires. But when they buy a new house, they are more concerned about how many bedrooms there will be, and what size television will they be able to put in the family room.

To my knowledge, there are two major home inspection organizations: ASHI and the National Association of Home Inspectors.

If you do not have the name of a competent inspector, you can find one by going to either of these organization's website.

When you contact a home inspector, inquire of his/her qualifications and background and check him/her out on the Web and at the Better Business Bureau.

If you decide to hire an inspector, get a copy of the inspector's contract before you formally commit yourself. Read it carefully, and make sure that the inspector will be doing the job you want.

There is one controversial provision in most home inspector's contract, called "an exculpatory clause". This states that should the inspector make a mistake and negligently fail to pick up problem areas in the house, your only remedy is to get full refund of the contract price. This clause has been upheld in the State of Maryland. However, the District of Columbia Court of Appeals held that these exculpatory clauses will not be enforced "when a party to the contract attempts to avoid liability for intentional conduct of harm caused by ‘reckless, wanton or gross behavior." (Carlton v Home Tech, decided June 15, 2006). This was a modest fix but unless you can prove that the inspector was engaged in such behavior, the exculpatory clause will be enforced. State laws differ on this issue.

While not every home inspector will agree to delete this clause, it certainly is worth trying.

Purchasing a new home creates significant anxiety among many potential homebuyers. Why not get an inspector to be on your side to relieve you of at least one aspect -- namely is the house built properly or will we have problems after we go to settlement?



Source: RealtyTimes, Benny L. Kass
http://realtytimes.com/consumeradvice/buyersadvice1/item/33253-20150304-new-homes-need-inspections-also