Nolo's Essential Guide to Buying Your First Home (60 page)

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Authors: Ilona Bray,Alayna Schroeder,Marcia Stewart

Tags: #Law, #Business & Economics, #House buying, #Property, #Real Estate

BOOK: Nolo's Essential Guide to Buying Your First Home
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Don’t make it a family affair.
We asked California inspector Paul A. Rude what he wishes people would do differently during the inspection. His reply: “Bring fewer people along. Often the whole family wants a chance to see the house, and they’re feeling festive, planning for new curtains, and maybe taking care of a crying baby. All of this is distracting if I’m trying to explain why the house may need $100,000 in repairs.”
 
Say What? Understanding Your General Inspection Report
 
Within two to three days of the general inspection, you should receive a written report, several pages long. It may go straight to your agent, so be sure to get a copy. (We know of at least one horror story where an agent went on vacation and forgot to forward an inspection report containing information about sewage issues—the buyers had to spend thousands of dollars on repairs after moving in.)
The best inspectors give you a descriptive narrative report. (The Homebuyer’s Toolkit on the CD-ROM includes a sample, from inspector Paul A. Rude.) Some include digital photos (nice, except that some inspectors use them to replace actual explanations of the problem). At the other end of the spectrum, cookie-cutter franchise operations give you a computer-generated, check-the-box report, where each item may be simply marked “serviceable,” “not serviceable,” “repair or replace,” or something equally vague.
No matter what your report looks like, read the entire thing, even if your agent summarizes it for you. Realize, however, that some of the report is just boilerplate—for example, disclaimers regarding areas that the inspector takes no responsibility for. The purpose is usually to head off lawsuits.
 
Shoulda read the report.
After the inspection, Julian’s real estate agent told him that the report showed “no major defects.” Julian’s exact words were, “Awesome.” He closed the sale and moved in. That winter, Julian watched water leak into the house through its aged roof. He says, “I finally read the report, ready to yell at the inspector for incompetence. But no, the leaky roof was right there! There went hundreds of dollars that I could have asked the seller to pay if I’d been paying attention.”
How Bad Is It, Really?
 
Every house has problems, and most can be fixed or lived with. The seller has no obligation to provide you with a flawless house, and the inspection isn’t a repair list—it just gives you an opportunity to negotiate. Plus, the inspector wouldn’t be doing the job right without describing everything from a missing cover plate on an electrical outlet to a crack in the foundation. And the inspector has to worry that if the report leaves something out, you might one day respond with a lawsuit.
The inspector should be able to prioritize the necessary repairs and explain whether they need immediate work. But don’t expect the inspector to tell you that your house has “passed” or “failed.” While buyers and agents frequently ask whether a problem is serious or is a “defect,” some inspectors rightfully shy away from making such judgments. One buyer’s defect is another buyer’s “no big deal.” The inspectors don’t want to scare you unduly—nor do they want you to later complain that they didn’t ring sufficiently loud alarm bells.
Don’t ask the inspector to give you an exact estimate of repair costs, either. That’s partly because you shouldn’t be hiring the inspector to do the repairs (that would create a conflict of interest), so any cost estimate is hypothetical. It’s also because some repairs may need a closer look and can be approached in more than one way—for example, crumbling mortar between chimney bricks might be fixed with either a quick patch or a complete teardown and rebuild. You and a separately hired contractor would decide on the solution.
It’s okay to contact the inspector after reading the report and ask for clarification or more information. Like every professional, inspectors have their own jargon, and you may need a translation of some of the report’s more arcane language. Other common questions include, “How important is this really?” or “How soon do I need to fix this?” And if you notice something missing from the report, ask for a written addition.
Getting Estimates for Repair Needs
 
If not to the inspector, to whom do you talk about the cost and other details concerning repair needs that turned up in the report? You’ll need to make some educated but quick decisions about whether the problems justify backing out of the sale or at least asking the seller to pay for the repairs (as discussed in Chapter 11). Your inspector may be able to recommend follow-up professionals. Your real estate agent can also help here.
Termite or Pest Inspections
 
Years ago, most everyone got a pest inspection, to check for fungus, dry rot, and “wood-boring organisms”—creepy crawlies that dine on homes, such as termites, carpenter ants, powder-post beetles, and carpenter bees. And almost no one got a general home inspection. Today, the pattern has reversed. The standard home inspection is the broader, structural type, while pest inspections remain a separate specialty.
In regions with pest problems, it’s common and wise to get both types of inspections. Most parts of the United States do have some sort of pest trouble, whether it’s termites in the West, old-house borer beetles in the East, or carpenter ants in the Midwest and South. In fact, your bank or lender will probably insist on a pest report, and that any problems be corrected before you move in.
Your seller may have had a pest inspection done before putting the house on the market—and if you’re lucky, has already had the repairs done. But, as with every inspection, you may still want to have your own, independent one done. Ask your real estate agent about the reputation of the seller’s pest inspector. Your bank or lender, in fact, may demand a second inspection after the first one is more than 30 days old (these house pests are quick eaters).
How Gross Are They? Termite Facts
 
• Termites actually eat wood (well, technically, protozoa in their gut do the digesting). All that wood gives the termites gas—enough, some believe, to boost global warming.
• Termites move slowly but will keep on trekking for up to one-half an acre in search of a tasty wood source.
• A termite colony may contain between 100 and 1 million-plus termites.
• Subterranean termites can, in a major infestation, destroy a house in two years.
• At least you’re not househunting in Africa—one species there builds cement-like mounds that are the largest non-man made structures in the world. If the termites were as big as people, their towers would be 180 stories high.
 
 
In a few states, a mixed pest/home inspection is common or even standard. But it’s worth trying to find separate specialists if you can, since finding one who is truly expert in both house structure and the various pests is difficult. Adding to the confusion, a regular home inspector may alert you to obvious signs of pests. (Though they may have to be careful how they word this: In Washington State, for example, it’s illegal for anyone but a licensed pest inspector to make any determinations about pests in your home.) The general inspector will then likely suggest a follow-up pest inspection.
Budget around $150 to $300 for the pest inspection. Plan to tag along—it won’t take as long as the general inspection, usually no more than one hour.
When to Get Other, Specialized Inspections
 
Your general inspection and pest inspection may be enough. But, as Texas inspector Paul MacLean notes, “Your general inspector is like a family physician, who gives you the big picture—but may need to refer you to a heart specialist or brain surgeon for potentially serious conditions or complications.” Consider hiring more inspectors if:
• your inspector recommends them, such as for electrical or plumbing issues; structural engineering issues like a damaged foundation; a house on a steep hillside; unusual construction types like a house built on a pier; a defect in a retaining wall; drainage or soil problems; and toxic substances like asbestos, lead, or radon
• you know you’re allergic or sensitive to, or are worried about, particular toxic substances such as mold
• you notice a potential problem in an area your inspector’s report doesn’t cover, such as unpleasant aromas around the septic tank
• the property has special features such as a swimming pool, septic tank, or boathouse, or
• the seller’s disclosure report revealed potential problems, such as lead or asbestos, that your general inspector didn’t test for.
 
 
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“What’s the 800-pound gorilla in your area?”
According to adviser Paul A. Rude, every geographic area has some potential natural disaster. How your home stands up to this gorilla’s pounding should be among your first priorities in a home inspection. On the West Coast, it’s earthquakes, floods, or mudslides; in the southeastern United States, it’s hurricanes; in the northern states, it’s extreme cold weather and snow.
 
Trouble in Paradise: Inspecting Newly Built Homes
 
If you’re buying a house that hasn’t yet been built, you have every right to expect something in mint condition—like a shiny new raincoat. But if you’re like many homebuyers, you may soon discover missing buttons and leaking seams. It’s been called an epidemic of bad workmanship: In a 2005 sample,
SmartMoney
magazine found that one in ten new houses had problems the owners were sufficiently mad about to contact their state licensing board. (See “Heartbreak Houses” in
SmartMoney,
September 2006.)
It’s not hard to understand the source of the problem: Developers respond to buyer demand, and everyone wants their house built
today
, or at least tomorrow. Buyers also want hard-to-build luxury features like vaulted ceilings and giant windows. Meanwhile, experienced contractors or subcontractors are in short supply. So, some developers cut corners; hire unqualified, inexperienced workers; or just plain make mistakes.

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