Since many deals seem to be falling through before getting to closing, I thought I would offer a quick checklist of items that Realtors can use to "pre-inspect" the home during their showings or pre-bid walkthroughs.

This is not to suggest that Realtors suddenly start doing the job of inspectors (hey - I LIKE my job!) but it IS a way for you to begin to set your clients expectations for a home before the inspection...and even before submitting a bid!

The following is not a complete or exhaustive list, but does give you a pretty good starting point for potential problems or concerns that you can identify without any tools and with nearly no specialist's knowledge.

And if you want more information, you can check out the following blogs which lay it out in much greater detail:

Part 1 - Intro to Deal Killers

Part 2 - Get the Most out of the Disclosure

Part 3 - Easy Pre-Inspection

Part 4 - Mold and Asbestos and Lead, Oh My!

BASIC WALKTHROUGH CHECKLIST

Heading Off Environmental Concerns

 Other scary words that have been known to spook buyers include:

• Mold
• Asbestos
• Lead

But each of these can be addressed with buyers long before an inspection if you recognize it for what it is and discuss the solutions with them.  Quite frankly, some people are just panicked about these issues and no amount of education will get them past it - but at least you can present these issues before the bid is placed with a little observation and know-how.

MOLD:

If you see it, if you smell it - you have it.

Testing (which can be expensive) is only usually necessary if there is a dispute that the substance is mold, or if the buyers have specific concerns or allergies related to the type of mold. 

Let them save their money and focus instead on how to correct the source of the moisture that created the mold.  Remediation is just a fancy word for "guys dressed in space suits who charge you outrage sums of money to replace drywall and spray things down with bleach."

That's right.  Their secret ingredient is most often Clorox.  That'll be $2500, please.

And, often, they do all of that without figuring out and fixing where the water came from in the first place.  Of course there are some companies who want you to buy their special mold cleaning product and will tell you that only their "special" solution does the job.  If you believe this line of thinking, then you probably have several products advertised on infomercials in your home.

I have read that  "experts" estimate that 80-90 percent of all basement moisture problems (including mold) are corrected by cleaning and fixing the gutters and drainage system on the outside of the home, and improving the grading.  My experience over 6 years of inspections tells me that this figure is about right (if not a little low).  So, look on the exterior of the home at the point where you see the mold on the interior, and most likely you will find a downspout that is missing or isn't discharging well, a gutter that is damaged or clogged, or a depression that is collecting water when it rains/snows.

Correct these problems first.  Remove the moldy materials and install new, and if it can't be removed, bleach it.  It's that simple.

And when you tell your clients about it they will think:

•1)      You're a genius and,

•2)      This mold thing isn't really all that scary, after all.

ASBESTOS:

Everyone knows that asbestos is bad for you.  But most people don't know that it is only harmful if it becomes airborne and breathed in (we call that "friable").  It is perfectly acceptable to "encapsulate" or wrap up the asbestos inside another material so that it can't become airborne.  This is commonly done with asbestos pipe or duct insulation or siding.

So, the key for you is identifying the asbestos and discussing encapsulation with your clients before the Deal Killer gets a chance to do it and sacre them away. 

Look closely at the heat pipes or ducts when you are in the basement.  If there is a white wrap around the pipes that looks powdery, like it is made of some kind of plaster material- that's probably asbestos pipe wrap.  If there is a plastery, gauze-type of material applied at the heat pipe elbows - that is probably asbestos.  And if there is a chalky white, paper-like covering wrapped around older ductwork - that is most likely asbestos.  All of these can be encapsulated in newer insulation without further danger.  Asbestos shingles can be painted or covered over by another type of siding. 

DO NOT attempt to remove the asbestos in any situation.  This is dangerous, and the disposal fees are outrageous (again with the guys in space suits who charge you outrageous sums of money...).

LEAD

If the home was built before 1970, chances are high that someone used at least one coat of lead based paint on the doors, windows, trim and possibly the walls.

While much of the concerns seem to focus on kids eating paint chips, the bigger concerns is airborne lead dust that is far more dangerous and can be created by something as simple as opening and closing the bedroom door.

Friction between a door (or window) and the frame creates lead dust that, when inhaled, is about 10 times as harmful as the ingested chips.  So, scout out any original doors and windows and look for places where they stick or rub - these will have old paint showing through:  lead paint.

The solution is remarkably simple: encapsulate it.  First, try to eliminate the friction by repairing or altering the door/window  (this may require planing or physical alteration to the door or frame tht can create dust and may have to be performed using EPA recommended procedures).  Next, paint right over the lead paint with a specific kind of liquid coating (glorified paint) called an "encapsulant."  These products (like ChildGuard) are specifically designed and rated for lead paint encapsulation, and are approved for use by the EPA.  ChildGuard even has an additive that makes it bitter and less likely to be eaten by children.

As an added bonus, the cost of encapsulation is about 50 cent per square foot, as opposed to the $3-15/SF costs often quoted for lead paint abatement.

There are many items during an inspection that require a trained eye and professional evaluation.   But there are just as many that can be done by the average layperson without a single tool.  And a good Realtor with a careful eye can educate their clients while taking the bite out of the Deal Killer's barking.

 If you have missed the other discussions of how to make your deal "Deal Killer" proof you can find them here:

Part 3 - Easy Pre-inspection

Part 2 - Get the Most out of the Disclosure

Part 1 - Save your Deal from the "Deal Killers"

"Pre-inspecting" the Home

Beat the Deal Killer to the Punch!

Some items that come up on an inspection are safety or code related issues that - when described by a Deal Killer - can scare even a sensible buyer out of a deal.  How a buyer is educated about these problems will determine whether they run away from the deal or not.

Below is a list of commonly cited safety issues and their approximate cost to repair:

• Double tapped breaker                            $100-200 each
• Missing GFCI outlet                                 $40-50 each
• Ungrounded outlet                                  $50-100/outlet or $250-500/circuit
• Missing TPR valve tube on water heater    $10-50
• Reverse polarity outlet                            $25-50 each

Each of these items could be described in such a way that you would be amazed that the home is still standing. 

And each of these items is something you can either observe for yourself, or discuss with the buyers before the inspection to let them know that they are common problems to older homes and that while they should be corrected, the danger factor of each is minimal and the cost to cure is really pretty small.  And none of them costs over $200 to fix!

So, instead of letting the inspector relate horror stories about the "fire waiting to happen" as a result of the double tapped breaker in the electrical panel, simply tell them before the cover of the panel is even removed: "In most homes, we usually find one or two double tapped breakers and other minor issues. They are common and easily correctible."  In fact, many of the agents who use me regularly often help me prepare clients by betting me on the number of double taps we will find.  This makes it a lighthearted moment that diffuses any fears about the breaker, while still recognizing that it is a defect to be addressed for a small cost.

Another example involves ungrounded outlets.

Too often I see inspection reports with something like this:

"Ungrounded outlets are a safety hazard and are in violation of the building and national wiring codes. They need be made safe immediately."

Alarmist nonsense.

Now, I regularly tell clients when I find ungrounded outlets because A) it's my job, and B) I wouldn't want their hard drive to get zapped because they were unaware that the outlet had no grounding protection.  But the inherent danger can be WAY overstated, and they are - in fact - allowable by code in older homes.  Plus, cheap fixes are available.

Instead, I tell the client about how to handle them in easy to understand terms so they aren't afraid they are going to be electrocuted every time they turn on a light, and so they can protect their sensitive and electronic equipment.  I also tell them that ungrounded outlets are common and at least half the outlets in my own home are not grounded - its an old house and re-wiring isn't worth it to protect my $10 alarm clock.

I have plenty more but this blog is already too long, so I'll save it for the next installment.  And in case you missed Parts 1 and 2 here they are:

http://activerain.com/blogsview/1004425/How-to-Beat-the-Deal-Killer-and-Save-Your-Deal-Part-1

http://activerain.com/blogsview/1007371/Beating-the-Deal-Killers-Part-2

Coming soon... a quicky, helpful pre-inspection checklist that you can do in 10 minutes without any tools!

It takes an experienced inspector, skilled in communication to help educate a buyer about their home, taking care to address their concerns, and helping them understand that every ungrounded outlet is not a screaming death trap waiting to strike.

And, it takes a skilled and professional agent to help manage their client's expectations before the bid is accepted.

With that in mind, I am offering some strategies that help you:

• Troubleshoot the home before the inspection, and even before the bid
• Set buyer expectations, and pre-educate them
• Understand the dreaded "Deal Killer" inspector and deal killing buyer and how to handle them

Troubleshooting the Home

Find the Clues on the Disclosure Statement

An ounce of prevention is worth a pound of cure - or in this case, calming the fears of nervous buyers after a really tough inspection.

While you may not always be in a position to have repairs or corrections made before the inspection (especially if you are not the listing agent), you can troubleshoot the home and begin to set buyer (and seller) expectations as they walk through a home and place a bid.

Below is a list of the most expensive issues commonly cited on home inspections, and some VERY ballpark guesstimates as to replacement costs (based on experience):

• Roof repair/replacement                         $5,000-15,000
• Replace heating unit                               $2,500-5,000
• Replace AC unit                                      $1,500-4,000
• Replace electric service entry cable          $1,000-1,500
• Replace leaking cast iron drain pipes        $1,000-5,000
• Replace knob and tube wiring                  $500-750/circuit    $8,000-12,000/home
• Replace windows                                   $250-500 each
• Replace water heater                             $400-800

Of course, there are many expensive potential repairs that are not listed here, but they occur less commonly and are not as easy to identify.

Notice that each of these items is something that is either clearly visible or is listed on most sellers disclosure form.  This can help you determine the age and remaining life of each component (life spans listed below) and prepare your client, before you ever have an inspection:

• Typical asphalt/fiberglass shingle roof                              20-30 years
• Gas forced air furnace                                                    20-25 years
• Gas/oil circulating boiler heater (the kind with radiators)    25-35 years
• AC system (exterior condenser unit)                                 12-15 years
• Service Entry cable (electric)                                           40-50 years
• Cast Iron drain stack                                                       50-75 years
• Windows (double hung, thermally insulated)                     12-15 years
• Water heater                                                                 10-14 years

Simply by carefully reading the disclosure (if it is properly filled out) you can determine when a home is likely to need a new heater, roof, etc and can help adjust your client's expectations accordingly before they even bid on the home.

 Next installment tomorrow....Do Your Own Pre-Inspection and Beat the Deal Killer to the Punch

Lately, it seems that more and more deals are dying on the vine before ever getting to closing.  Partly this is based on unreasonable expectations of buyers who feel emboldened to ask for outrageous concessions due to the market conditions.

 First time buyers, nervous buyers, or buyers who want lobster at McDonald's prices seem to be driving the recent market.

 As a home inspector who is an educator - very much NOT an alarmist - I have been stunned at how a simple description of the condition of an item as "fair" with normal "wear and tear" can be manipulated by buyers into a demand that the seller have the HVAC system replaced.

 While it is not always the inspector's fault - all too often it is.  There are many in our business that derives some strange sense of satisfaction out of being known as a "deal killer."  The real problem is that they equate that label with having done a good job.  Nothing could be further from the truth.

 It's easy to point out issues in an older home.

 It's easy to scare nervous first time buyers.

 And it's easy to write a report that covers the inspector's hindquarters while needlessly recommending "further evaluations" and replacement.

 It takes an experienced inspector, skilled in communication to help educate a buyer about their home, taking care to address their concerns, and helping them understand that every ungrounded outlet is not a screaming death trap waiting to strike.

 And, it takes a skilled and professional agent to help manage their client's expectations before the bid is accepted.

 With that in mind, over the next few days/weeks I will be offering some strategies that help you:

• Troubleshoot the home before the inspection, and even before the bid
• Set buyer expectations, and pre-educate them
• Understand the dreaded "Deal Killer" inspector and deal killing buyer and how to handle them

Stay tuned....or if you can't wait and want the whole thing all at once, email me and I'll forward it you.

Best wishes,

Sherlock Homes

For three years now, I have been trying to fulfill one of my girlfriend's wishes and participate together in the Mother's Day Race for the Cure in Philadelphia (May 11). 

Since we are both single parents, life often intervenes, especially since her kids like to take some time to do something for her for Mother's Day and we have not been able to make it to the race.

So, this year I took the bull by the horns and signed us up last month, and offered to pay for her kids to join us if they wanted (otherwise, we will do a dinner thing later).  She was, and is, thrilled!! 

Several people we know have been personally touched by breast cancer, and she has had far too many uncomfortable moments herself.  Through her, this has become a cause I have become passionate about.

Because I know how busy we all get and how far away this seems, I thought I would send a WAKE UP CALL to anyone who is interested. 

You can register online or, for you last minute folks, they do have walk up registration.  You don't need to set a massive fundraising goal (you can simply pay the entry fee and be done with it if you don't like asking people for money). 

It is a great cause, and looks like a great time!  Hope to see you there!

Today I will go out and play Powerball, Mega Millions, and hit the tables in AC all night because all the stars have aligned.  It has finally happened.

I HAVE FOUND AN HONEST ROOFER!

It's true.  I know what you are all saying:  "There is no such thing.  It's a myth like the Easter Bunny, Leprechauns, and Elvis" (He was real? Really?)

On Friday, I got a call from a client who felt he was being swindled by not one, but TWO roofing companies, and he wanted an independent inspection to find out just what the heck was going on with his 10 year old flat roof.  Company #1 had installed the roof 10 years ago, and did a top coating last year (but of course won't warranty the work).  The client believed he had a leak in the skylight and called Company #1 back to fix it. 

They told him that his roof was just old and needed to be replaced.  So they sold him a standard fiberglass roll roof with a flood coat of hot asphalt for the bargain price of $2600!!!  (The actual retail price of this showcase is about $1200-1500). 

So, when the client's skylight began to leak again one year later, he suspected he got ripped off.  So he called Company #2.  Company #2 looked at some alligatoring and a few bubbles on the roof and told him that Company #1 lied and didn't install a new roof, just a top coating.  They wanted to sell him a new "rubberized" torch down covering for only $2000.  OK - that's a fair price, a little much, but within reason.

The problem is that they were dead wrong.  The covering was new.  I could see this by lifting the drip edge slightly and looking at the area underneath where the pristine edges of new fiberglass roll covering was staring back at me.  So, Company #2 wanted to perform $2000 worth of unnecessary work.

The skylight leak?  Oh yeah, that was a result of condensation and no drip edge or other method to deal with it on the skylight fixture.  Interior heat and exterior freezing temps were causing condensation to build up and drip down the skylight and onto his wall, staining it.  A thermally insulated pane wouldn't do this, but this wasn't a high end skylight.

So, I called in Company #3, who was referred to me by a family member.  Not believing that any honest roofers exist, I figured I would accompany him onto the roof to get an estimate on repairs and a licensed expert opinion for my client in case he needs it in what I suspect will be some pending litigation. 

I gave him nearly no information except that there was a dispute over the age of the roof and that there were some issued to be resolved.  I secretly figured he might also try to sell the client a $2000 roof!

Then it happened.  The clouds parted...sun shone down and I swore I heard birds (not just the usual pigeons) and music (not the usual stuff being blasted from cars).  The Honest Roofer turned to me and said:

"This is a new roof.  You have some alligatoring which means it may have been poured under less than ideal weather conditions or that the asphalt was too hot when it was poured, but it is a new roof.  And the bubbling I can take care of right now - give me a few minutes."

You could have knocked me over with a feather.  He wouldn't take any money, but the overjoyed client did tip him.

And suddenly, everything I thought I knew was being challenged.  So, if I seem to be trying new things or re-evaluating old ideas recently, it's because I have met The Honest Roofer and I am a different man because of it.

Not one to keep a good thing to myself (but not one to hawk soneone's services in an inappropriate way) if you want the name and number of The Honest Roofer (sorry he is honest but not so web savvy, no website) please email me and I will be happy to pass it along to you (in the Philly, Montco, Bucks areas of PA).

I will now continue looking for the Holy Grail, Camelot, Santa's Workshop, Neverland......

I got this email from someone last night.  I am not able to help them due to time constraints but was able to offer some heplful advice.

As you will read, yet another builder got someone to absolve them of responsibility for mold (unbelievable!)  This is fairly typical of some builders and often puts buyers in a bind.  Unfortunately, too many buyers (like this one) think that there "can't possibly" be mold or major problems in a new construction home.

Can there?.....

My husband and I are in the process of purchasing a new home in XXXXX County. We are meeting with the construction manager this Monday for our pre-drywall inspection. We decided to take a quick walk through this evening by ourselves after hours ( yes, we know we were not supposed to do this). Anyhow, it looks as though the OSB has mold on it (black spots all over) and quite a few of the framing studs are of poor quality and have black areas on them as well. Does this sound like mold to you? I did take some photos and can e-mail them to you if you'd like.   Unfortunately, we signed a statement in our agreement of sale that stated that our builder was not responsible for any mold and would take no corrective action if found. We signed it but didn't even dream that moldy framing materials would be an issue.   What would you suggest we do? The builder has $20,000 of our money in the form of a deposit already.   Obviously, we need a speedy reply. Any information that you could give me would be greatly appreciated! Thank you very much in advance.

Fortunately we were able to give this buyer some key advice BEFORE she got railroaded by "policy" and double talk.  Don't be an uneducated victim!  Get an inspection and let a qualified Realtor review your contract BEFORE you sign!

For FREE consulations or answers to your questions about NEW construction, do not hesitate to call!

Sherlock Homes

I know it goes beyond the scope of a traditional home inspection, but I like to include some value added services for my clients.  I have mentioned before about little things I do like Appliance Recall Research, but a news story on the Local Fox station last night reinforced for me the importance of urging condo buyers to obtain and READ the meeting minutes from as many recent meetings of the Condo Association as they have access to.

The video is attached (gross out alert - it deals with raw sewage).  In short, the condo owners pay over $160 per month to the Association who has allowed raw sewage backups to exist for several months.  While a good inspector may likely uncover this issue during a typical inspection, such concerns that may be missed often can be found in the meeting minutes.

Among other important things, previous clients have used these reports to uncover concerns about:

• Problem Neighbors
• Unresponsive Maintenance Staff
• "Tabled" Issues (for things like parking lot resurfacing, often linked to large assessments)
• Common Complaints of Residents (windows, roofing, etc)

Many of these issues could not possibly be found during even the most diligent inspection, but all of them can significantly impact the pocketbook or quality of life (or both!) of the condo buyer-to-be.

I have no idea how many of my condo clients follow this advice, but I do know of at least 6 that have and uncovered some concerns that they were VERY glad they knew about before they bought. 

I should also mention that many Associations get very territorial about these documents and that can make obtaining them difficult to impossible.  But where the info is available, it is in everyone's best interest to read it (as the people in the Fox News story will surely tell you!)

After my last blog I have had a LOT of interesting side conversations with Realtors about new construction inspections, building codes, and other such entertaining topics.

The one thing that seemed to be new to many Realtors was that new construction inspections are WAY MORE than just an inspection of the house a few days before closing.  So, I thought I would expand the idea a little and add a few blogs detailing just what a new construction inspection is all about.

So, when is the right time to have your New Construction Home Inspected?  Here is a little idea of what an IDEAL new construction inspection may involve and how it can help a buyer:

Conduct Your Inspection in Stages - It's NEVER too early to inspect!

A useful new construction inspection can begin with the pouring of the foundation.  My ideal new construction inspection happens in 3 or 4 stages. 

• Foundation Inspection (after the foundation has been poured)

The Foundation Inspection checks for use of proper reinforcing materials, footers, bolts, damp proofing, and other items to ensure proper installation (since this is the base for the entire home).

• Pre-Drywall Inspection (after all systems are roughed-in, but before the drywall and insulation goes up).
• Is your home built with 2x6 or 2x4 (or finger-jointed 2x4)? 
• Is there mold and mildew on studs and framing?
• Did your builder go the extra mile, or do the bare minimum?

This is the stage where good builders really separate themselves from the lesser ones.

The Pre-Drywall Inspection looks for use of bad lumber (bowed, cracked); structural concerns in the wall and floor structures; cracks in slab or concrete walls; installation of fire stop; proper location of all lights, switches, outlets, cable, phone, and custom features (as per buyer plans); mold; flashing on windows and doors; proper siding installation; roofing; and general code compliance.  

This is the MOST useful inspection and often where we catch many critical details that get concealed by drywall.

 

• "Final" Inspection (ideally, at least 2-3 days prior to closing)

The Pre-Settlement Inspection is a full home inspection (as most people are familiar with them) with careful attention to cosmetic detail. 

This inspection ideally occurs at least 2 days prior to settlement or final walkthrough to allow the builder ample time to address concerns prior to closing (we will also attend the pre-closing walkthrough and verify items have been completed, if desired).  However, many builders are still touching up items and completing things right up until closing, so scheduling in advance of final walkthrough is not always possible.  

The attention to detail is an 11 on a scale of 1-10 for this inspection, calling out scratches on cabinet doors, chips in countertops, tiles, and dings in doors, trim, and drywall.   We use a roll of blue painters tape to identify any cosmetic concerns (paint touch up, ding, etc) for paint crews to address prior to settlement. We also test all appliances, inspect major features and systems, and perform a complete inspection just as we would on any other home inspection.

• Follow-up Inspection (performed at or immediately before final buyer walkthrough)

This inspection is simply to check that each items on the punch list has been corrected.

Every inspector is different, but I price each service separately and also offer a package discount.  I have also found that offering to get the builder a punch list (same day) and the buyer a punch list and detailed report (all same day) makes the process go more smoothly and get concerns addressed more quickly for all involved.

These inspections are all useful, with the pre-drywall stage being the most overlooked, but perhaps the most advantageous inspection for our clients.  The timing (the stage of construction when the client calls me) usually dictates how much we are able to accomplish.

It's important to remember that while most homes will have to pass a code inspection, that that in many areas code inspectors are overwhelmed with work and may miss items.  It should also be considered that building codes are a basic minimum of what is safe and acceptable - THEY ARE NOT THE ULTIMATE MEASURE OF SAFETY! 

Getting your own inspection (in stages!) is the BEST way to protect yourself.