JTownRealEstate

I must confess that as a Realtor I really like houses and everything that comes along with them. I know you are saying to yourself, “Well Dah, of course you have to like houses to sell houses.” Not always the case with some Realtors I know. Anyway, I digress.  Since I really like houses, I am also addicted to all the house flip shows on our 2 million cable channel box. So many different types of shows, but all with the same premise of either making a quick buck or creating something so ugly that not even your mother would be proud of what you created. But I still dig the concept and sometimes even pick up some new ideas for my own home.

One of the recent trends that I see on these shows is the astonishing amount of flippers that get what they feel is a great deal on a home and they never bother to have a routine home inspection performed on the home.  It is as if the producers of the show scour the countryside looking for individuals, or “rookie” flippers as it were, that are so naive to think that they might be buying a lemon of a home.

Hello, genius, anyone home. There is a reason that his dump hasn’t sold in the last year and why you are getting such a great deal on it. All the while, these folks could have saved themselves a lot of money and a great deal of headache with, you guessed it, a HOME INSPECTION.

To that end, as a responsible and ethical Realtor, I always make it a point to have all the buyers I work with have a home inspection performed on all existing and new construction homes. Yes, I did say new construction. Why? Because there is no such thing as a perfect home and I have found just as many flaws in a new construction home than I have in existing.

So please allow me to put on my Realtor hat for a moment and share with you some of the important points of a home inspection:

The purpose of a home inspection is to inform the individual buyer of the current condition of the home. The purchase contract the buyer and seller signed is contingent on the home inspection. A buyer will generally have the option based upon the inspection to; opt out of the purchase, ask for repairs or credit towards repairs or a purchase price reduction.

Licensing: Some states require home inspector licensing while others do not. In states that do require licensing ask for the inspectors’ FULL license number and write it down. This includes any letter type distinctions in front or in back of the number. This will help tell you if he is a fully licensed home inspector or an intern or apprentice.

Insurance: Does the home inspector carry Errors & Omissions and or liability insurance and can they provide proof of insurance upon request. Some states require insurance while others do not. Inquire as to the state insurance requirements and be sure the inspectors has the proper type and amount.

Training: Has the inspector had formal training from a recognized training school? State regulation in the home inspection profession is relatively recent (Many states still do not have licensing or regulation!), so formal training has been mostly optional. Many “old timers” were carpenters, electricians or builders and learned to perform home inspections “on the job”. However, there is no single trade that qualifies someone to move into the field of home inspection without extensive training.

Experience: This is can be a misleading qualification if the right questions are not asked. Years of experience are not as important as the total number of home inspections completed. In a 2005 national home inspection business operations study conducted by the American Society of Home Inspectors (ASHI), over 80 percent of respondents’ said they were full time home inspectors. Yet almost 40 percent said they perform less than 100 home inspections a year. This discrepancy may indicate that many home inspectors are working at other jobs or are semi-retired individuals. Be sure to ask how many inspections the inspector completes a year, at least 200 or over would be a good standard. It is also still important to ask overall years of experience and total number of home inspections.

Continuing Education: Even well trained, experienced home inspectors must continually update their skills and knowledge. Licensing requires a minimal amount of continuing education for inspectors to renew their license. Look for home inspectors who go beyond the necessary minimum and spend the time and money to keep their skills current.

Association Membership: Home inspectors who have made the commitment of time, training, testing and money to belong to a reputable professional home inspection society are generally more committed to doing a high quality job for their clients. But be careful, not all home inspection organizations are equal. Some ask for little or no training, knowledge or experience to become a member, while others are very rigorous in their qualifications for membership. A membership logo means little; it’s what’s behind the symbol that counts. Inquire about and research this area fully, it will provide you with great insight into the home inspectors’ abilities and dedication to performing a top notch home inspection.

The Inspection: How long does the home inspection take? As previously mentioned short inspection times mean poor quality. A thorough home inspection on an averaged sized home, (1500-2500 sq. ft.) should last 2-4 hours. Also ask if the inspector would like you to attend the home inspection. If they say no, this should alert you that something is wrong with this particular company. A good home inspector should insist that you attend the home inspection if at all possible.

The Report: This is why you hire a home inspector, to provide written detailed information about the house. The first and most important question, when and how will you receive the report? On site, within 24 hours, a week, by email, regular mail or delivered by the inspector. What type of report does the inspector use, what is the approximate length of the report, are there pictures included? Be wary of short reports, 10 pages or less, and long report turn around times.

Other Qualifications: Ask if the home inspector has additional certifications or licenses in services that you may need in addition to the home inspection. For instance radon testing is a very common ancillary service provided by many home inspection companies, but many inspectors are not certified or formally trained. Some states may even require certification or licensing in these services. If you are looking to have other services done be sure to ask about the inspectors’ qualifications to conduct the tests you require.

Miscellaneous Items: Some things you should confirm when calling to hire a home inspector. Be positive that the inspector that will be doing your home inspection possesses the qualifications stated by the person on the phone. This is especially important when talking with multi-inspector firms. Also will the home inspector be readily available for follow up questions.

Price: The very last question you should ask, not the first. Put quite simply, you get what you pay for. Good home inspectors demand higher prices because of experience and money invested into training to improve their skills and their business for the benefit of their clients. Remember the money you pay a good inspector is an investment. You will very likely receive back from the seller monies well in excess of the home inspection fee. Be certain to choose your inspector wisely.

Summary: When calling to hire a Home inspector be sure to ask about:

• Licensing
• Insurance
• Formal Training
• Experience
• Continuing Education
• Association Membership
• The Inspection
• The Report
• Other Qualifications
• Does the inspector doing the inspection have the qualification stated
• PRICE

Following this simple guide should aid you in finding a well qualified, professional home inspector. Having a good home inspection will provide you with valuable information on your prospective purchase and ultimately piece of mind going forward.

Create a Budget

By preparing a budget while you are looking at homes, you can better focus on mortgage payment goals and how your new home will affect your total expenses. Maintaining a budget during the time you own the home can help to prevent potential financial disasters as well as point you in a money saving direction so you have more funds available for those things that you need or want.

1. Keep your spending patterns in check
2. Pay off minor debts (without affecting your plan for saving money - outlined below)
3. DO NOT incur any new debt (this can disqualify you from buying your new home)

Save Money

Going hand and hand with an effective household budget is saving money on those things that you truly need. To start saving, take an inventory of your needs to see where you can shave the dollars. Begin with the biggest items first, where the most potential for savings are, and move down the scale to the less expensive items. A moderate savings on one of the big times (houses and cars) combined with savings on the smaller items (food, clothes, etc.) can reap a large reward in your total budget.

YOU WILL NEED AT LEAST $1000

1. Good Faith Deposit  ($500 Minimum). This will be credited back to you at closing to cover insurance and other expenses.
2. Home and termite Inspections ($250)
3. Just In Case ($250)

Determine Your Wants and Needs

Buying a home isn’t as difficult as you might think, even if you’re short on funds, but the process will go a lot smoother if you get familiar with the area where you want to live and narrow down your wants and needs before you start looking at houses.  Consider what is going to be most important for you in a new home.  How many bedrooms? How many bathes? What minimum amount of square footage would you feel comfortable living with? Is a basement important to you? Do you want a garage? By answering these questions early on you will save yourself a tremendous amount of time and effort.

Start Searching for a Home

This is where having a great REALTOR (like myself) will come in handy. Your REALTOR will provide you with multiple listing sheets to study. You will probably pick up House for Sale magazines and read classified ads in your local newspaper. Most likely you will spend time surfing the Internet for homes. No better place to start than www.4256000.com. You might even plan afternoon drives to preview neighborhoods. Your REALTOR will help narrow your search and find your new home.

Making an Offer

One of the most common misconceptions among home buyers occurs when it comes time to make an offer on a home. Many believe that even though they have tendered an offer to the sellers, that their options are still open. To some degree, this is correct. If the seller rejects the offer, counteroffers, or simply does not respond, options are still open. You, as the buyer, can accept the counteroffer, make another offer, or simply move on.

If, however, the seller accepts the offer (you are notified of its acceptance) then a legally binding contract has most likely been struck. Once the offer has been accepted, the “lets think it over just a bit more” phase has passed.

Homes Inspections and Other Tests

I highly recommend a professional home inspection, whether you are buying an existing home or new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition. It’s critical to decide which inspections and tests you want to perform. I will advise you on when inspections should be handled and if additional types of testing are needed.

Avoiding and Correcting Last Minute Problems

As your closing date nears, everyone involved in your real estate transaction should check its progress on a daily basis, because staying on top of things means you’ll know immediately if there’s a problem that must be dealt with. Again, having a good REALTOR will give you real peice of mind at this point of the transaction. They will be setting up the closing time, final walk-throughs, working with the closing attorney, checking closing statements for their validity and doing a great deal of behind the scenenes work.

You’re on the Way to Closing

Most of your home buying problems are behind you now and you’re own your way to closing. This is the event that transfers ownership of the property to you and when you recieve the keys to the property.