Home-inspection Checklist Helps Prevent Problems

When people buy a home, it is advisable to have it inspected by a professional home inspector to ensure there are no major issues with the home before buying it, and to help determine which items might need repair or regular maintenance.

But once people have lived in their homes for a few years, they usually don't bother about putting many of the same items on a home-inspection checklist to ensure there are no developing problems.

It's smart to use regular-home inspections to ensure your home is properly maintained. Certainly having a professional home inspector perform an annual inspection of your home is a great idea, but you can do your own inspections and save a lot of money.

While I wouldn't advise you to crawl into your attic or up on your roof if you don't feel comfortable doing that, there are plenty of other items you can check and repair if needed.

The weather at this time of year is ideal for doing an exterior inspection of your home. When that's done, check the interior as well so you can fix things before additional problems occur.

When doing your home inspection, focus on these key areas that many professional home inspectors find most often are in need of maintenance:

• Gutters and downspouts. Make sure gutters are clear of debris and aligned properly so they can do what they were made to do -- keep rain water from seeping into your basement and causing potential flooding or structural problems. While you are inspecting your gutters, look for leaks in the seams that can be repaired with silicon caulk. If you pull on the gutters and they give way, your fascia boards may be rotting and need replacing.

• Improper grading around the home. Besides leaky gutters, one of the other common reasons people have basement leaks is because the grading is sloping toward the home, rather than away from it. If you have an area of your yard that slopes toward your home, re-grade it with topsoil.

• Shingles and chimney flashing. Loose or missing shingles are a sure sign your roof may be wearing or is damaged. The safest way to do a sight inspection of your roof is to use a pair of binoculars. Look for worn, curling, or discolored shingles, and check the valleys (where rooflines come together).

Cracks in the valleys can lead to leaks in the attic. They need to be sealed immediately. Then, check the flashings around your chimney to see if they need to be caulked or repaired. This will also help prevent water from leaking into your home.

• Exterior caulking and weather stripping. Lack of proper caulking or weather stripping around door and window exteriors can cause air to seep into and out of the home, which increases heating and cooling bills. Replace hardened or cracked caulk and window putty. Make sure all openings where pipes and wires enter the home are sealed and the caulk is still flexible.

• Gas leaks at valves on appliances. Gas valves on appliances, such as dryers, stoves, or hot-water tanks, can begin to leak over time. There have been many incidents where a gas leak in a home resulted in an explosion.

By doing the simple smell test, you can ensure this catastrophe won't happen to you. If you smell gas, call the gas company immediately.

• Dryer vent systems. Every year, thousands of families experience home fires that are caused by cheap or clogged dryer vents. Unfortunately, many homeowners use vinyl tubing rather than hard metal for the dryer vent, or they don't clean the vents regularly. Both can lead to dryer fires.

If your clothes dyer has a vinyl or foil dryer vent, replace it with a solid-metal vent. And make sure you clean your dryer vent at least twice a year.

• Inoperative smoke detectors. Most people have smoke detectors in their home, but don't clean them or change the battery regularly. I recommend cleaning smoke detectors and replacing the batteries twice a year -- on Memorial Day and on Labor Day. Remember, a smoke detector's life span is 10 years.

Building your own home inspection routine into your annual maintenance schedule is a cost-effective way to protect one of the biggest investments of your life.

Also consider getting a professional home inspector to perform an in-depth inspection every five to ten years to help you determine if you have been missing items that need repair and get a home warranty to cover regular maintenance costs.

It is always more economical to repair or upgrade according to your schedule rather than having to repair or replace on an emergency basis. The more carefully you inspect your home, the less you'll have to worry about in the future.

By: Glenn Haege
Detroit News; August 30, 2008

Dream Homes At Prices You Can Afford

Is buying a new home a good idea in today's economy? As a long-term investment, homeownership is still one of the best investments for individual households.

Housing, like all markets, has its ups and downs. Homeownership has a track record that is virtually unmatched by any other purchase in terms of its real benefits.

If you have good credit, a job, and a steady income, you'll find there's still plenty of mortgage credit to be had at good rates. For well-qualified buyers, rates are running at near historic lows.

Based on the housing stimulus program recently signed into law, you might even qualify for a first-time homebuyer tax credit, if you purchase a new home now.

Homeownership's Real Value

Dollar for dollar, homeownership is a solid stepping-stone to a future of financial security and the single largest creator of wealth for many Americans.

Over time, real estate has consistently appreciated, even through periodic adjustments in response to economic conditions. In the state of North Carolina, home appreciation has stayed at a solid 8% annually, with Raleigh real estate at a 6.4% annual home appreciation rate, compared to the national home appreciation rate or 5% annually.

The returns of such high appreciation rates are much more than an equal investment into the stock market. For instance, at the national appreciation rate of 5%, if you put 10% down on a $200,000 house, for an investment of $20,000. At a 5% annual appreciation rate, that $200,000 home would increase in value by $10,000 during the first year. Earning a $10,000 on an investment of $20,000 is an extraordinary 50% annual return. As you can imagine, an even better investment return occurs with an 8% home appreciation rate.

In contrast, putting that $20,000 down payment into the stock market and getting a 5% gain would only yield a $1,000 profit.

Should I Wait to Buy Until Home Prices Go Even Lower?

If you wait for what you think is the absolute best deal, you could end up waiting for years and missing out on your dream home. All the market fundamentals show that now is a good time to buy – prices are down, interest rate are near historic low levels, and there are lots of homes to choose from.

There are many things to consider when “shopping around” for a new home, and waiting for something that might now happen will only prolong that process. In addition to taking advantage of currently offered incentives, one of the most important things you can do when looking to buy a new home is to hire a home inspector to make sure the home is safe. A home inspector focuses on the condition and structure of the house and points out observed safety concerns. However, a home inspector will not do and destructive testing and will not inspect what they cannot see, leaving your new home in stable condition.

Therefore, if you buy now, you'll not only be in the driver's seat during the buying and home inspection process, you'll also reap the gains of price appreciation. Remember, those who purchased homes in the early 1990s during the last big economic and housing downturn came out as big winners.

The Advantage of New Construction

Today's new homes are better than ever. When you buy a new home, you get quality, new construction, the latest technological advances, and low-maintenance, money-saving, energy-efficient appliances. Many new-construction homes are built to Green Building standards. Homes are designed to fit your lifestyle, featuring larger kitchens for family gatherings, bigger closets, ample storage space, and more bathrooms.

In addition to cutting edge construction, it is easier than ever to get a home warranty. A home warranty will provide a new homeowner with coverage that will help curb the costs for common frequent household breakdowns. A home warranty will help keep the house looking and functioning like new, and is also a good selling point down the road.

So it's a good time to buy – if you're a first time buyer and qualify for the tax credit, it's an even better time to buy – and there are quality, new-construction homes and condos in every price range throughout North Carolina waiting for you. Don't wait and risk missing out on your dream home.

More Home Buyers Working More Closely With Home Inspector

Is your home inspector a deal killer? I hope so, for your sake as a home buyer. But I doubt your real estate agent would agree.

A deal killer is a home inspector who reports everything found — everything — so you can make an informed decision about the house you are thinking of buying, and either negotiate a lower price with your eyes open or walk away from the deal.

Some real estate agents resent home inspectors who do "too good" a job. They feel that they have worked hard to present a home their buyers want to buy, or their clients want to sell. Then the home inspector screws up the deal.

Let's face it: If potential buyers are having an inspection done, they already love the house. If a home inspection reveals that minor fixes are necessary, then buyers will feel more confident paying the full price and won't walk away. But if it turns out that there is something more serious — and expensive — wrong that kills the deal, then real estate agents should be grateful for that information.

It will allow agent and client to either correct the problem before putting the house back on the market, or adjust the price so the cost of repair is reflected. No one wants to sell a home with hidden defects; that can lead to legal and insurance claims and damaged reputations.

Some buyers don't really want to believe the ugly truth about their dream homes. They'd prefer to stick their heads in the sand, and are receptive when an agent minimizes the problems.

But you need to listen to your home inspector, especially when he gives you bad news. Don't fall for a lipstick-and-mascara cover-up of a house that looks good but is rotten underneath.

Your home inspector isn't trying to scare you, he is educating you. And you need to listen.

A home inspection isn't just some game or a strategy to reduce the house price. This is your chance to learn about your home: what's good, what's bad, what needs repair now and what can wait a while.

In a seller's market, buyers often feel they have no time to wait for inspections. They might be in a bidding war and are afraid to lose. But what they should be afraid of is buying a house at an inflated price either without an inspection or not listening to what the inspector says.

But as the buyer, you need to take responsibility. Don't be rushed because your agent wants to close the deal or you think you'll lose your dream house in a bidding war. There are other houses. And if you don't slow down and check out the building before you purchase it, your dream home may end up a nightmare.

Pre-sale inspection

Sometimes a seller will have a pre-sale inspection done to make sure the house is up to standard, so that when it is evaluated by the buyer's home inspector it passes with flying colours.

This is not fluffing for sale or baking bread in the oven so the house smells good. This is real nuts-and-bolts stuff, solid information a seller can offer about what might need repair or improvement in the house.

Your home inspector can educate you about the deficiencies of your home, before potential buyers find them, so you can set a realistic price or fix the problems before you list the house.

Don't forget, most buyers of resale homes will want an inspection. They'll discover those deficiencies (if they have a good inspector, of course) and be able to use them as a bargaining tool to reduce the price.

New Home PDI

Many first-time buyers choose a new house, thinking it will be problem-free. They are afraid that a resale might present problems that must be repaired even before they unpack. The truth is, many new houses have all kinds of problems, big and small.

You shouldn't assume every new house is built properly. Many aren't. And if you move in and find problems, you'll need to take them up with the builder and the home warranty program.

How long do you have before the warranty is up on certain things in your new home?

Before buyers take possession of a home, they conduct a PDI (pre-delivery inspection) along with the builder. This is to make sure there is no outstanding work, and that any deficiencies are identified.

Many buyers do this on their own, but this is where it makes sense to hire a professional home inspector, with knowledge and experience in new-home PDI. Buyers might notice only the cosmetic problems, because they usually don't have technical construction knowledge and experience.

The problem is, some builders won't allow independent home inspectors to be present during the PDI. You have to wonder why. What are they trying to hide?

Do you think your builder's representative is going to disclose poor workmanship, building code violations or defects during your PDI? I doubt it.

If you haven't signed on with a builder yet, find one that allows a professional home inspector to accompany you on your PDI.

If it's too late and your house is being built, remember that until your new home changes hands, the builder still owns it.

Make sure you conduct an inspection as soon as you take possession, before it's too late to file a claim under the builder's warranty.

By: Mike Holmes
Globe and Mail; May 30, 2008

Home Warranty To The Rescue

Home Warranty Saves Ohio Homeowner Thousands on Appliance Repairs

Springfield, Ohio a suburb of blue collar Toldeo Ohio is a fairly large midewestern town full of hard working homeowners. Recently one Springfield family felt they had found the right home warranty company until their claim was denied forcing them to fork over more than $3000 for a new air conditioning unit. When the unmentionable company wouldn't help the family a quick phone call to ORA Home Warranty did the trick.

Homeowners have plenty of choices and many companies offer home warranty coverage there are plenty of choices out there but you want one that will give you the least trouble when you need the most help. When John Rickstan got an offer letter for a home warranty through from the high-pressure, unmentionable home warranty insurance outfit he decided to sign up. He had compared other prices and felt $30 a month was a competitive price to keep him safe if he had to replace a major appliance.

"We need our air conditioning my wife has COPD (Chronic Obstructive Pulmonary Disease) and if she gets real hot she could really be in trouble," said Rickstan.

But when their air stopped working he got to work on filing a home warranty claim. He says the company denied the claim because of pre-existing problems with the air conditioning unit...problems that Rickstan says he had the documentation to prove had been repaired.

"We fixed everything in this house before I ever took out a home warranty just so something like this wouldn't happen," said Rickstan.

Desperate to protect his wife's health as they waited for a final answer on their appeal, the couple spent more than $3000 on a new air conditioning unit. They also continued making phone calls to the dis-honest home warranty and continued making calls.

"I was calling them daily for about a week and a half and then I got aggravated and came to ORA Home Warranty," said Ricksan.

We wanted to know more about this company, but we couldn't even find them on the Internet. So we searched Google for Ohio Home Warranty and found ORA Home Warranty and they were also registered with the Better Business Bureau.

Meanwhile the Rickson's made persistent calls that led to their claim being settled for more than $2,800 dollars. ORA Home Warranty stayed with us through the entire process and made sure we got paid.

The Better Business Bureau lists some warnings to consider before signing up for a home warranty:
--Check out the company track record.
--For The Best Home Warranty Call: 800-472-7004.
--Do comparison shopping about cost and deductibles and make sure to contact ORA Home Warranty.
--Enlist a home inspector to determine if any pre-exisiting problems might not be covered.
--Call the home warranty company before you buy and see how they treat the customer.