Home Inspection Part 2:

Last week we talked about some exterior elements to look for when looking at a home.  This week I would like to talk about some of the interior elements to look for in the home you are considering.  One of the fist things to look for when you are looking at a home are the walls and ceilings.  If you see cracks in the  sheet rock or plaster then you need to be concerned.  Some cracks are pretty benign and shouldn't be a big red flag.  On the other hand some cracks should be a red flag.  How to determine the difference.  Usually what I look for is how big or long the crack is and also if it is in a straight line or if it is at an angle.  Usually cracks that occur in the joints aren't something that is a serious defect in the home, but could be caused by a poor tape job when they did the sheet rock or it could be from minor settling after the dry wall was finished.  You will also see cracks along joints if a home has been left vacant and there have been large temperature differences over time.  When you have large variances in temperature you get contraction and expansion which will sometime cause cracks along the joints.  If you see cracks that go at angles or have wide gaps in them then you should be very cautious.  Most of the times those crack are revealing a much deeper problem, such as structural damage caused by settling of the soil which can be caused by many different things.  If there is large movement in a homes foundation it will usually manifest itself in the sheet rock or plaster.  When you see these cracks you need to have a professional look at them and determine the cause of the cracks and is it something that will continue to occur and if the problem can be fixed.  When looking at homes look for differences in the dry wall finish.  If you see area's where the texture looks different then you may have issues that someone is trying to cover up.  Sometimes you will see a difference in the paint sheen or color.  These items may not be deal killers if you can find out what is causing them and they can be repaired.  I sold a home to my brother that had a settling issue that was easily fixed.  We had a professional come out and look at the problem and gave us a bid to fix the home.  It cost about $10,000 to fix it, but it was well worth it, because he was able to get such a good deal on the home.  Some homes are built on expansive soils and will exhibit these issues and usually they aren't going away, so it is something that you will have to deal with throughout home ownership and it will make it difficult to sell in the future, so it would be wise to stay away from those problems.  Another thing I look for is the reveal around the door ways.  If the gap around the door is consistent then you should be fine, if not take a closer look.  I always recommend opening and closing every door when you go through a home.  Some doors may not open all the way, because the won't clear the counter top or because of other obstructions in the home.  I would also recommend that you open and close every window that is operable in the home.  Be especially careful of single and double hung windows (the type that move up and down).  Many of these types of windows have faulty lift mechanisms in them.  Also look for those window that look fogged, because more than likely the seal has been broken and condensation will accumulate between the panes of glass.  Also make sure that the screens can be easily removed for cleaning.  One other thing to do is open and close all cabinet doors and drawers.  Check to make sure that they all work properly and have no obstructions when you open and close them.  Also check to see the quality of the construction.  A good quality cabinet will have hardwood drawers that are dovetailed front and back.  Sometimes the face of the drawer is dovetailed into the box, sometimes the box is dovetailed and the face is screwed onto the drawer.  Another thing that I look for is to see if the cabinet boxes have face frames on them.  There are many cabinet makers that sell there cabinets as a European slim line and make it sound good and all it is, is a cheap quality cabinet.  A good cabinet will have a face frame on the boxes to give stability and durability to the cabinet.  The quality of the cabinets and windows is a good indicator of the quality the builder has put into the home.  If you are looking to have quality cabinets look to the hardwoods for you next cabinets.  Oak, Maple, Cherry, and Hickory are usually very good woods to use.  Avoid woods like Alder, pine and cedar.  These woods don't usually hold up very long as they are softer woods.  Many people like the knots in the wood, but these should actually be less expensive than cabinets with out the knots.  Knots in woods can also be a week point for future damage.  Next time you look at a home, look at it through different eyes and you can avoid frustration down the road.  

What to look for when buying a home. Exterior elements

Take a closer look before you purchase your next home!

When you look at a home there are several things that you should be aware.  In this article I will address some of the exterior elements around the home.  This is by no means an all inclusive list but will include many elements that are crucial when purchasing a home.  One of the first things to look at is the grade of the landscaping around the home.  Does everything slope away from the home.  Does the home sit higher than the street(s) around it?  If not then you have to ask yourself where does the water flow during a rain storm or  when the snow melts?  I have seen homes that are on sloped lots and the grading or the lots allows water to flow towards the home.  Some of these issues can be corrected with proper grading of the lot and the addition of retaining walls and drainage systems.  I have a neighbor whose home sits way below the grade of the land and every time it rained they had water coming in the back door.  He corrected the problem, but it was very expensive to do.  Save yourself a lot of head ache by looking at the lay of the land.  Another exterior element that can be very troublesome is when people allow the dirt and mulch from the flower beds to sit above the sill plate of the home.  You can see in the pictures below what I am talking about.

On the left side you can see where the soils should be and it
becomes unacceptable as it goes above the bottom of the wall.
You should have at least 2 inches of exposed footing below the
plate line.

This picture shows the mulch above the plate line.  This 

is not acceptable and is a place for termites and moisture to

enter the home and do damage.

I also see people that build garden boxes against their homes and this is not a good idea either as it is a clear path for termites to invade the structure.  

Another exterior element that you should look for are cracks in the concrete that have elevation changes in them.  This can be caused by expansive soils, tree roots, and water leaks.  These can be expensive issues to deal with as well as safety hazards.  Small cracks in concrete is usually normal, but watch for elevation changes and ask questions if you can't see an obvious reason for the cracks.

Rain gutters is also an important thing to look at to make sure they move the water away from the house and that the water has somewhere to go.  Make sure that any nearby trees don't shed into the rain gutters.  That leads to another issue which is tree planted to close to the home.  Roots and branches can be very destructive to the home.  It can cause damage by lifting and/or cracking the foundation and slab.  Tree roots get into sewer lines and septic leach fields and cause a lot of damage every year.  Trees close to a home also poses a fire danger.  Look for cracks in block walls as they can also indicate soils issues or possible water leaks.  One of the other things I see a lot of are walls that are made of cinder block, which is very porous, and then people back fill dirt against them without water proofing the walls.  The water and minerals in the soil usually eat away at the block eventually causing it to fail.  This can be a huge issue on a retaining wall.  If you are looking at a home that sits way above the home behind you and there is a block wall between the properties, look at the back side of the wall to make sure you don't have water damage to the wall.  

Another common issue that I see on the outside of homes are window that weren't installed correctly.  If they aren't installed correctly you will have leaky windows that will allow water and air infiltration.  I think this is enough for today, but make sure you have any home you are looking to purchase inspected by a professional home inspector who can point out these issues and many others that you need to be aware of when purchasing a home.

Beware of Wolves posing as investors wanting to purchase your home!

Thinking about selling your home? 

Recently you may have had someone contact you offering to purchase your home.  They don't want you to talk to a Realtor, but want you to deal directly with them.   They promise to purchase your home for cash so you can move on with your life.  The only concern with these offers are that they are usually way under the actual value of your home.  The would be predator will try to justify there offer, by convincing you of how much you are saving.  You don't have to pay a real estate commission, you don't have to spend any money on fixing up your home.  You don't have to wait to find a buyer so you are saving monthly mortgage payments.  These and other convincing arguments are used to try and convince you to sell your home to them.  If you are tempted to fall for this ploy, do yourself a favor, contact a local Realtor that you trust and have them give you an idea of what your home would sell for in the current market.  Have them help you run the numbers to see if it makes sense to you.  Most of the time you will find that you can sell your home for a lot more money than you are being offered for your home and if you are willing to be patient for a couple of months you will get your home sold and you can move on with your life.  The average sale on your home will cost you about 7% of the contract price.  That is 6 % for the real estate commission and about 1% for the title fees and insurance.  Of course if you don't care about the equity you have in your home and you hate Realtor's, then go ahead and sell it to an investor.  By the way you might ask a Realtor if they have an investor who would be interested in purchasing your home 20% below market value.  Chance are he does and he would be happy to do the paper work for you.  He might even want to purchase your home for himself.

4 Bedrooms/3 bathrooms with a pool
only $295.000  MLS # 13-145542

The Real Estate market in Washington County Utah is red hot.  The market over the past year has really heated up.  What does that me to those who are trying to purchase a home?  If you are looking for a home your money will buy less home than it did a year ago.  The average sales price has gone up over 23% in the past year.  Homes under $200,000. are getting hard to find.  Don't worry though because home prices will continue to rise in the next 12 months and so if you buy now you will look pretty smart in a year from now.  With land prices going up and the cost of developing going up, if you can get in now you will certainly be in a better position than you will in a year from now.  Most of the cheap lots are gone and so the new lots coming to the market will be considerably more money.  When new home prices go up then the existing home prices will follow.  Interest rates are still very low, but rising as well.  Last year you could buy a nice starter home for a payment of under $1000.00 a month.  Now that same home will cost you about $1200.00 a month.  It will also be a little smaller home than what you could have bought with the same payment last year.  A small change in interest rate can make a big difference in your purchasing power.  There are some big changes coming to FHA guidelines in the next month which will also impact mortgage insurance.  The biggest one is that on FHA loans mortgage insurance will be for the life of the loan. (OUCH)
For those who are looking to sell their home it means that you will be able to get more money for your home and that if priced properly and in great condition it will sell quickly.  There will always be those who think that because it is a sellers market that they don't have to do anything to get their home ready to sell.  This attitude will end up costing the seller thousands of dollars.  There are still enough homes on the market that the best offers will go to the best homes.  Most people looking for a home don't want to have to do a lot of fix up on deferred maintenance.  The bottom line is that to get top dollar for your home in a sellers market still requires your home to be in top condition.  I recently sold a home before it ever made it to the multiple listing service.  The home was in great condition and the seller spent some money on doing new counter tops in the kitchen and new laminate flooring in the kitchen.  The first people through the door paid her full price.  I have another home in a great neighborhood that is in good condition with many new things like roof, air conditioning, furnace, water heater, ect.  The home is very cluttered and doesn't show well.  The home would sell very quickly if it were de-cluttered and ready to show.  The bottom line is if you want the home to sell, get it ready to sell.  Most people wouldn't by a car if they got in and it smelled funny, if there was junk in the back seat and under the front seat, if the paint was faded and scratched and the body rusted.  People don't buy houses and pay top dollar for them if they can't see them and if they are dirty.  Buyers are wanting to buy and sellers are wanting to sell, using a little common sense will make a win win for both.
Happy House Hunting,