The premier source for home inspector news and information. Whether you're a homebuyer or a licensed home inspector, you'll find valuable insight on the world of home inspection training and competency on this blog.
For home buyers and investors, the global economic recession and the housing slump present an array of opportunities for those who can identify good bargains. At the heart of the housing decline has been a number of bad home loans, which has resulted in more and more foreclosed properties coming onto the market.
Banks now own tens of thousands of homes across the country and they are eager to sell the homes as quickly as possible. This doesn't mean that banks are "giving homes away," but it should be stressed that banks are not in the home-owning business; they are lending institutions that make their money on home mortgages.
According to RealtyTrac, an online marketplace for foreclosed properties, the overall foreclosure activity continues to register at a high level compared to 2008. When home owners can't pay their mortgage and get foreclosed on, the bank's first move is to sell the property at an auction. When the house doesn't sell at auction, the property reverts back to bank ownership, becoming what's known as a Real Estate Owned (REO) property.
These REO properties are very enticing for investors and home buyers because they are often listed slightly below the market value. While REO properties have proved popular for their value, some have been purchasing these bank-owned homes without having a home inspector look at the property.
"REO properties are sold in 'as-is' condition -- the condition the house was in when it was repossessed. Any savings on the purchase price can easily be offset by unforeseen repairs on defects not apparent to an untrained eye," said Kylene Golubski of home inspection company Inspect-It 1st. "In the worst cases, repair costs can escalate to the point where a buyer will fail to recover a return on their investment."
When banks become owners of a property, they don't do repairs the way a typical investor would. They will send a team to the property to shut off the electricity and disconnect the toilets, but they have no interest in maintaining or repairing the property. Potential home buyers should understand that the property may have a number of defects, and only a home inspector will have the expertise to determine what's not functioning correctly in the house.
According to Golubski, the home buying process can require "a lot of money and accurate information regarding the condition of its systems and components is required to make a smart decision." She urges buyers to consider the benefits of a home inspection: "For a couple hundred dollars, an inspection can either save you thousands on unforeseen repairs, or give you peace of mind. Either one is invaluable."
While banks typically will not lower their asking price based on home defects (as an average homeowner might), the discovery of defects allows a potential home buyer to "walk away" from the property.
While it's normal for buyers to become emotionally invested in an REO property that fits their needs and is offered at a good price, one must have the sense to walk away from a property that will require too much repair work. The only way to arm one's self is with a professional home inspector.
Labels: Foreclosed House, foreclosed properties, home buyers and investors, professional home inspector
Home inspection plays a very important role in the real estate process. When people buy or sell a home, they rely on a home inspector to provide an accurate and reliable inspection of a property. A home inspector tells them about the condition of the home and helps them avoid buying a house that needs major repairs. It is the perfect way to get an in-depth and impartial opinion of their next home… before they buy it.
The main purpose of the home inspector is to provide an objective viewpoint on the condition of a specific home at the time of inspection. The inspector does not evaluate the cost or value of the property, but provides a close examination of the following:
- Structural Components: Foundations, floors and walls.
- Exterior Components: Siding paint, windows, decks, garage doors, etc.
- Roofing: Coverings, flashings, chimneys, etc.
- Plumbing: Piping, fixtures, faucets, water heating and fuel storage systems, etc.
- Electrical: Wiring, main service panels, conductors, switches, receptacles, etc.
- Heating: Equipment, safety controls, distribution systems, chimneys, etc.
- Air Conditioning and Heat Pumps: Cooling and air-handling equipment, controls and ducting, etc.
- Interior: Partitions, ceilings, floors, railings, doors and windows, etc.
- Insulation and Ventilation: Attics, walls, floors, foundations, kitchen and bathrooms, etc.
A home inspector will additionally perform the following services (sometimes for an extra fee): mold sampling, radon testing, asbestos evaluation, pests/wood destroying organisms, carbon monoxide testing, lead testing, and more.
There are three steps involved with each inspection. First, the house inspector will evaluate the physical condition of a property, including the structure, construction and mechanical systems. Second, he or she will identify the items that should be repaired or replaced. Third, he or she will estimate the remaining useful life of the major systems (such as electrical, plumbing, heating, air conditioning), equipment, structure, and finishes.)
Although home inspections are primarily visual, an inspector may use a tape measure, survey instruments, metering devices, and other equipment, such as concrete strength measurer, to aid in his or her inspection. The house inspector will keep a log of their work, take photographs, and file a formal report. The inspection usually takes two or three hours (depending on the age and size of the home).
To become a home inspector , individuals need to enroll in an accredited home inspection school. This will provide them with comprehensive and hands-on training in all aspects of a home inspection career. It will teach them exactly what to look for during an inspection, and provide them with the skills to perform a quality service. They will also know how to prepare an informative and accurate home inspection report.
Home inspection is an essential part of real estate - without it, people wouldn't know the condition of a house before they purchased it. Most people don't have the ability or know-how to inspect all aspects of a property themselves - they need knowledge of plumbing, electrical and ventilation and much more. A trained home inspector can easily step into this role and provide an accurate reporting of the condition of a home and protect the interests of the home buyer.
Labels: accredited home inspection school, home inspection, home inspection school, home inspection training, home inspector
We are careful when we choose a car mechanic or a CPA, but how careful are we when choosing a home inspector? While it's possible to recover from a botched car repair job or an IRS audit, purchasing a home with serious defects can impact your bottom line for years to come.
The Dallas Morning News recently published a great checklist for people to follow when evaluating a home inspector. The checklist gets right to the heart of choosing a quality, experienced home inspector.
The home inspector checklist includes:
Locating the right person: word of mouth information is always the best way of learning about great professionals -- ask your friends and family about good home inspectors; you should also ask your real agent if they can recommend a particular home inspector.
Research: Make sure that the home inspector has a track record of professional service. One place to research their professional history is at the Better Business Bureau -- they can tell you about any past complaints against the inspector. Some states require a home inspector to have a license; if your state requires a license, ask for the inspector's license number and then check with the state to see if it's valid.
Education and training: You want someone who has received a quality home inspection education. Ask them where they went to school and what kinds of certificates the have, along with questions about the nature of their home inspection experience.
Inspection scope: Ask the home inspector what parts of the home he/she will inspect: ask about the roof, the swimming pool and appliances, or anything else you're concerned about or would like to see addressed.
Checklist sample: Ask to see a sample of the home inspection checklist that he/she will use when going through the home. See whether it is a thorough form that will allow the inspector to write up a detailed report or if it a simple, amateur form.
The final report: Find out how the inspector will deliver the final report to you. Will it be emailed, faxed or mailed? Ask if the report will include photographs of the home's defects.
References: There's nothing like talking to an old customer to get a sense of what kind of home inspector the person is. A professional home inspector should be willing to share a list of former customers with you.
Insurance: Sometimes mistakes happen, so home inspectors may have E&O (errors and omissions) insurance, which will help pay for any liability issues that arise as a result of the inspection.
Money: Price, of course, is important. You probably pay a little extra when hiring a car mechanic or a CPA -- use the same approach with a home inspector. If you choose a "cheap" home inspector, you might just get what you pay for.
Customers, who are curious what home inspectors study when they are training, can search the Internet for 'home inspection school' and then scan through the sites to learn about the kinds of training that schools require of inspection students.
Labels: home inspection education, home inspection school, home inspector, home inspector checklist
