The following is a list of tips show how to spot an illegal contractor:
You are asked to obtain the permits. A licensed contractor who is in good standing will always obtain the permit.
The contractor is not willing to put all terms in writing and offers only a verbal contract. Never accept an oral agreement.
The contractor does not have proof of insurance. Licensed contractors must have general liability, property damage and workers' compensation insurance in effect at all times.
You are informed that the job does not require a building permit. Check with your local building official. Almost all projects, with a few exceptions, require a building permit.
Someone other than the person or company contracting to do the work obtains the permit. A licensed contractor in good standing will always obtain his own permit.
The contractor is only willing to work on weekends. This is often a sign that the person is an employee who is moonlighting without a license. Licensed contractors are full-time professionals.
The contractor only displays an occupational license.
You are asked to make your check payable to an individual instead of a company name. You are asked to make a payment in cash or you are asked to make the check payable to cash. Licensed contractors will almost always have a separate business account.
The absence of a license number in newspaper advertisements, business cards or Yellow Page advertisements. Licensed contractors are required by law to include their certificate of competency license number in all advertising, as well as on all vehicles used to perform construction work.
Newspaper, advertising flyer or Yellow Page ad where only the telephone number appears and there is not a business address.
Licensed contractors generally have an office or business address. An unlicensed contractor will more often work out of their vehicle or home.
First-time home-buyers face an unfamiliar road and risk purchasing the wrong place at the wrong time. Here's a guide to the potholes.
Buying your first home is an exercise in faith. You don't really know what you're getting into, you're awash in unfamiliar terminology and everyone you meet seems to have strong (and utterly contradictory) ideas about which way the housing market is headed.
You may not be able to avoid every home-purchase mistake, but you can keep your regrets to a minimum by avoiding the following traps:
Blindly using your agent's inspector
Your agent may recommend a home inspector because he does a good job - or because he keeps his mouth shut about problems that could torpedo the sale.
Yes, it's terrible to have to be so suspicious, but this is a big investment you're making. A good home inspection can keep you from buying a money pit. You can ask your agent for a recommendation, but get referrals from other recent buyers and try to interview at least three potential candidates before making your choice.
Few states regulate home inspectors closely, so real-estate columnist Ilyce Glink recommends you choose someone who belongs to the American Society of Home Inspectors, which requires its members to complete at least 250 inspections (or 750 if they don't have other licenses and experience). Ask about fees (which typically range from $300 to $700) and whether the inspector is licensed, bonded and insured, said Glink, author of "100 Questions Every First-Time Home Buyer Should Ask." Make sure you get a detailed, written report and, if at all possible, accompany the inspector so you can discuss the findings while they're still fresh.
Taking advice about what you can afford
Your agent, your broker and your lender don't know what you can afford. At best, they know the underwriting guidelines for various loans, which are designed to minimize the lenders' losses, not ensure that you'll maintain your financial health.
Getting a ‘temporary' loan
I'm hearing this potentially dangerous advice more often now that so many markets are spiraling out of the reach of first-time home-buyers: Get a mortgage with a low payment now, then refinance in a few years when your income is higher. This is the way some brokers and lenders are hawking adjustable-rate mortgages as well as their more exotic cousins, interest-only and flexible-payment loans.
There are a couple of problems with this advice. The first and most obvious is that no one can predict where interest rates will be five years from now. If they're substantially higher, you will have just passed up the opportunity to lock in rates when they were near generational lows. If your payment has been rising with those rates, you may not be able to afford your home even if your income is higher.
The other problem if you opt for one of the exotic mortgages is that you may not be building any equity in your home. If prices drop, you may owe more on your house than it's worth, which is going to make refinancing pretty tough unless you can come up with a ton of extra cash.
Opening or closing credit accounts
Both can hurt your all-important credit score, the three-digit number lenders use to help gauge your credit-worthiness. That can result in your getting stuck with a higher interest rate or losing the loan you want all together.
Failing to investigate the neighborhood
"One common mistake is not looking at the property and the neighborhood at various times," said Dick LePre, senior loan consultant for RPM Mortgage in San Francisco and author of the RateWatch newsletter. "Look at it during the day, the late afternoon when kids tend to cluster, at night and on both weekdays and weekends."
This ongoing inspection can reveal good news, bad news or both. You may find your home is on a popular shortcut for commuters or near the gathering place for local kids, but only for a few hours a day.
"Something which you construe as a problem might only happen one day a week or at a certain time of the day," LePre said.
He also recommends quizzing a few neighbors about what they like and don't like, and about which direction the neighborhood seems to be going.
"Find out if there are any ‘crazies' on the block," he said. "If there is empty space nearby, ascertain what the zoning is for that empty space. Is the next block over ... zoned commercial? Do you want a McDonald's as a neighbor?"
Buying when you're not ready
Buying a home is a great way for the average person to build wealth over the long run, but it's not for everyone in all circumstances.
If your finances are uncertain or your job prospects are up in the air, you might want to wait. Renting is also a better option if you're planning to move in a year or two.
Not buying when you are ready
All that said, you shouldn't let fear or uncertainty keep you on the sidelines if you're otherwise ready to buy a home.
MYTH: Scientists are not sure that radon really is a problem.
FACT: Although some scientists dispute the precise number of deaths due to radon, all the major health organizations (like the Centers for Disease Control and Prevention, the American Lung Association and the American Medical Association) agree with estimates that radon causes thousands of preventable lung cancer deaths every year. This is especially true among smokers, since the risk to smokers is much greater than to non-smokers.
MYTH: Radon testing is difficult, time-consuming and expensive.
FACT: Radon testing is easy. You can test your home yourself or hire a qualified radon test company. Either approach takes only a small amount of time and effort.
MYTH: Radon testing devices are not reliable and are difficult to find.
FACT: Reliable testing devices are available from qualified radon testers and companies. Reliable testing devices are also available by phone or mail-order, and can be purchased in hardware stores and other retail outlets. Call your state radon office for help in identifying radon testing companies.
MYTH: Homes with radon problems can't be fixed.
FACT: There are simple solutions to radon problems in homes. Hundreds of thousands of homeowners have already fixed radon problems in their homes. Radon levels can be readily lowered for $800 to $2,500 (with an average cost of $1,200).. Call your state radon office for help in identifying qualified mitigation contractors.
MYTH: Radon affects only certain kinds of homes.
FACT: House construction can affect radon levels. However, radon can be a problem in homes of all types: old homes, new homes, drafty homes, insulated homes, homes with basements, and homes without basements. Local geology, construction materials, and how the home was built are among the factors that can affect radon levels in homes.
MYTH: Radon is only a problem in certain parts of the country.
FACT: High radon levels have been found in every state. Radon problems do vary from area to area, but the only way to know your radon level is to test.
MYTH: A neighbor's test result is a good indication of whether your home has a problem.
FACT: It's not. Radon levels can vary greatly from home to home. The only way to know if your home has a radon problem is to test it.
MYTH: Everyone should test their water for radon.
FACT: Although radon gets into some homes through water, it is important to first test the air in the home for radon. If your water comes from a public water supply that uses ground water, call your water supplier. If high radon levels are found and the home has a private well, call the Safe Drinking Water Hotline at 1 800-426-4791 for information on testing your water.
MYTH: It's difficult to sell homes where radon problems have been discovered.
FACT: Where radon problems have been fixed, home sales have not been blocked or frustrated. The added protection is some times a good selling point.
MYTH: I've lived in my home for so long, it doesn't make sense to take action now.
FACT: You will reduce your risk of lung cancer when you reduce radon levels, even if you've lived with a radon problem for a long time.
MYTH: Short-term tests can't be used for making a decision about whether to fix your home.
FACT:A short-term test, followed by a second short-term test* can be used to decide whether to fix your home. However, the closer the average of your two short-term tests is to 4 pCi/L, the less certain you can be about whether your year-round average is above or below that level. Keep in mind that radon levels below 4 pCi/L still pose some risk. Radon levels can be reduced in most homes to 2 pCi/L or below.
Molds are part of the natural environment. Outdoors, molds play a part in nature by breaking down dead organic matter such as fallen leaves and dead trees, but indoors, mold growth should be avoided. Molds reproduce by means of tiny spores; the spores are invisible to the naked eye and float through outdoor and indoor air. Mold may begin growing indoors when mold spores land on surfaces that are wet. There are many types of mold, and none of them will grow without water or moisture.
Can Mold Cause Health Problems?
Molds are usually not a problem indoors, unless mold spores land on a wet or damp spot and begin growing. Molds have the potential to cause health problems. Molds produce allergens (substances that can cause allergic reactions), irritants, and in some cases, potentially toxic substances (mycotoxins). Inhaling or touching mold or mold spores may cause allergic reactions in sensitive individuals. Allergic responses include hay fever-type symptoms, such as sneezing, runny nose, red eyes, and skin rash (dermatitis). Allergic reactions to mold are common. They can be immediate or delayed. Molds can also cause asthma attacks in people with asthma who are allergic to mold. In addition, mold exposure can irritate the eyes, skin, nose, throat, and lungs of both mold-allergic and non-allergic people. Symptoms other than the allergic and irritant types are not commonly reported as a result of inhaling mold. Research on mold and health effects is ongoing. This brochure provides a brief overview; it does not describe all potential health effects related to mold exposure. For more detailed information consult a health professional. You may also wish to consult your state or local health department.
How Do I Get Rid Of Mold?
It is impossible to get rid of all mold and mold spores indoors; some mold spores will be found floating through the air and in house dust. The mold spores will not grow if moisture is not present. Indoor mold growth can and should be prevented or controlled by controlling moisture indoors. If there is mold growth in your home, you must clean up the mold and fix the water problem. If you clean up the mold, but don't fix the water problem, then, most likely, the mold problem will come back.
Even by minimum standards, inspectors make hundreds of observations during the course of a few hours in a home. But there is plenty they probably won't -- or officially can't -- tell you about the house you're about to buy.
After talking to some inspectors, we've come up with a list of eight things you won't find on most inspection checklists, but that you might want to check out with a specialist. Costs on each of these will vary -- ranging from less than $100 to several hundred dollars -- depending on how thorough the tests and inspections run.
Termites
A general home inspector might find clues that termites might be a problem and may recommend hiring a termite inspector to check it out.
Radon gas
Radon is a cancer-causing natural radioactive gas that comes from the natural decay of uranium found in nearly all soils. You can't see, smell or taste it, and it is the leading cause of lung cancer among nonsmokers. It's not tested for on the average home inspection, but some inspectors, like Johnny Kay of Fort Mill-based Arrow Home Inspection Service, will conduct a two-day short-term test.
Fireplaces & chimneys
If you're concerned about a home's chimney, hire an inspector or chimney sweep with a "chim cam," which is a camera at the end of a wand that allows a specialist to see every inch of a chimney. Kossler, the inspector and chimney sweep, says he often finds cracked caps on top of chimneys, which can cause water leakage and damage in the home.
Roof
Inspectors must visually check a home's roof either from the ground with binoculars or from a ladder perched at the end of a roof. Inspectors say most major problems can be spotted through these methods, but if a home is particularly large or has roof surfaces that are hard to see from those vantage points, it might be a good idea to have a roofer inspect.
Asbestos & lead paint
Asbestos is most dangerous in homes where renovations are taking place, because when asbestos fibers are disturbed, they get inhaled into the lungs and can cause health problems. Only homes built before 1978 are at a risk for having lead paint, which can be tested for with at-home kits or by a trained professional.
Mold
If you're worried it's a problem, hire a certified mold inspector. Some use thermal imaging and infrared scanning to find problems. Kossler says even some new homes are plagued with mold problems, because they're built with wood that is wet to start with and never gets a chance to dry.
Air & water quality
Home buyers with significant allergies or respiratory ailments may want to have the indoor air quality checked. Mold, mildew and other toxins and allergens might be present and require an air-duct cleaning. Water quality testing is always a good idea and is especially vital in homes with wells.
Insulation
It's not included on most checklists, but some inspectors can use an infrared camera to look for missing insulation in a home's walls. It's particularly useful before the final walk-through in a new home's 11th month, when many of the builder's warranties are about to expire.
Kossler says he's had clients who have required builders to remove large portions of drywall and install missing insulation after he used the infrared camera to test insulation.
Home inspectors simply note everything they see. It is our job to be your eyes, inspect everything in a home from the major items - heating, plumbing, electrical, foundation, roof, moisture penetration - to smaller easier fixed items like a garbage disposal malfunctioning, a leaky faucet, or cracked toilet tank. No home will be flawless including new construction.
A home inspector's purpose is to provide you with an unbiased evaluation of the property you are purchasing. The inspection report is a visual examination of the physical structure and operating systems in the home. This takes place in two forms - written and verbal. If you can attend the inspection, your inspector will walk you through the property and the report. In addition to reviewing the inspection findings, this is a good time to learn about maintenance and upkeep of the home's operating systems.
So now you have the inspection report, what do you do? Once you've talked it over with the inspector, talk to your real estate professional. In addition to providing knowledge of the home, the inspection findings may be used as negotiation. Your realtor knows what you can expect from the seller. Asking for minor items to be corrected may not be realistic, but asking for the heating system to be serviceable is probably in order.
Just as you would hire a mechanic to inspect a car that you are purchasing, hire a home inspector to inspect the home you are purchasing. Remember the cliché - better be safe than sorry. Get an inspection. Even in small condos we find issues that if not found can cost you money in the future.
Chad Brewer
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