Home Inspections: Pass or Fail?

Get a Home Inspection

Nearly all real estate Purchase Agreements (contracts) for homes sold today include a home inspection contingency clause. This provision allows the buyers to choose and hire a professional home inspector, usually at their own expense, to thoroughly evaluate the home for any major problems. A home inspector will not pass or fail a house, but rather describe its physical condition and indicate what components and systems may need major repair or replacement. 

Once the purchase agreement has been signed, inspections usually happen quickly, most often within 5 days.  After an appointment is made with the seller, the home inspector arrives and goes through the entire house.  Typically, a home inspection will take two to three hours and include a check of the home’s structural and mechanical condition.  But besides the structural and mechanical inspection, home inspectors may also do tests for radon gas, look for mold, check for wood destroying insects, or perform other services requested by the buyer.  Most buyers will meet the inspector at the house to review the inspector's findings.

Since 1976, home inspections have been standardized by the nation’s leading home inspector association, the American Society of Home Inspectors, Inc. (ASHI). The Society’s “Standards of Practice” dictate what must be inspected and how far home inspectors need to go to report those findings.

Minnesota does not currently have regulations in place for home inspectors but according to ASHI, a basic home inspection includes an evaluation of 10 different areas of the home: structure, exterior, roofing system, plumbing system, electrical system, heating system, air conditioning system, interior, insulation and ventilation, and fireplaces.

Within these areas, ASHI’s Standards of Practice details what inspectors must look at, as well as what may be excluded, from the inspection. For example, when inspecting the roofing system, inspectors must evaluate the roof shingles, gutters, flashing, skylights, chimneys and other penetrations like plumbing vents.  However, an inspector is not required to inspect a satellite dish, or to look inside chimneys that are not easily accessible.

When the home inspection is complete, the inspector will issue a report to the home buyer detailing what was found.  Inspectors will report on problems needing immediate attention, as well as conditions that can lead to more serious defects down the road.


No house is perfect. If the inspector identifies problems, it does not mean you should or shouldn’t buy the house, only that you will know what to expect. If your budget is tight, or if you don’t want to become involved in future repair work, this information will be important to you. If major problems are found, a seller may agree to make repairs or you may cancel the purchase agreement if this is within your contingency terms.

Only inspectors that are ASHI members are required to follow these strict guidelines.  However, some states also require licensing to become a home inspector, which carries with it it’s own set of requirements of what to inspect.  Even so, many states have adopted ASHI’s standards and its Code of Ethics as the benchmarks of professional performance.

Please interview your inspector about their education, experience and insurance prior to hiring them and ask if they have passed the National Home Inspector Examination. Also, be sure to know the time constraints within your purchase agreement contingency.

Need inspector referrals?  Call me!

How can I keep track of the homes I have seen?

Book-A-Showing!

What is Book-A-Showing and how do I use it as a buyer?

If you agent is a member of Book-A-Shoing, they can create a BookAShowing.com login account for you which allows you to see all of your showing activity (past and present), generate detailed maps to each showing appointment, and more. Whether you have looked at 1 house or 50, your and your agent will always have a reference of what you have viewed and when, and your showing feedback about the property.

When you request a showing on a home, you will receive e-mail notifications of confirmed showing appointments.  This eliminates the need for your real estate agent to call/text you multiple times with updates. You'll be more informed - faster!

Call me to get set up today!

The Language of Real Estate 101

Like most industries, real estate has a language all its own.

Hearing and using jargon/words you don't fully understand can be risky and confusing.

Even such basic terms as MLS, Mortgage, REALTOR® and the like are widely misunderstood and misused in everyday speech. In the interest of clear communication, here are 15 basic real estate terms related to buying or selling a home and what they mean:

1. Listing

An agreement between a real estate broker and a home owner that allows the broker to market and arrange for the sale of the owner's home. The word "listing" is also used to refer to the for-sale home itself. A home being sold by the owner without a real estate agent isn't a "listing".

2. MLS

Multiple Listing Service. An MLS is a local organization that collects, compiles and distributes information about homes listed for sale by its members, who are real estate brokers. Membership isn't open to the general public, although most listed on an MLS will appear on Realtor.com®. MLSs are local or regional. There is no one MLS covering the whole country. You can list on the MLS using a Flat Fee agent.

3. REALTOR®

A real estate broker or sales associate who is a member of the National Association of REALTORS® headquartered in Chicago. It's possible to have a real estate license, but not be a REALTOR®.

4. CMA

Comparative market analysis or competitive market analysis. A CMA is a report that shows prices of houses that are comparable to a subject home and that were recently sold or pending sale plus houses that are currently on the market or were on the market, but not sold within the listing period (Expireds).

5. 3B/2B

Shorthand notation for "three bedrooms and two bathrooms." A "bedroom" usually means a sleeping area with a window and a closet, but the definition varies in different places. A "full bathroom" is a room with a toilet, a sink and a bathtub. A "three-quarter bathroom" has a toilet, a sink and a shower, and a "half bathroom" has only a toilet and a sink.

6. Closing costs

All miscellaneous expenses paid by the buyer and seller when the real estate deal closes. These costs include the brokerage commission, mortgage-related fees, escrow or attorney's settlement charges, transfer taxes, recording fees, title insurance and so on. Closing costs generally are paid through escrow.

7. Purchase Agreement

The contract for the purchase of a home, signed by the buyer and seller, containing the agreed-upon price and any other conditions. This may also be known as an agreement of sale, a purchase contract, or a sale contract.

8. Contingency

A provision of an agreement that keeps the agreement from being fully legally binding until a certain condition is met. Examples include: Financing Contingency; If the buyer can't obtain financing as stated in the contingency, they may back out of the agreement or Inspection Contingency; The purchase is subject to an inspection acceptable to the buyer

9. Addendum or Amendment

An addendum to a real estate contract or purchase agreement is a document attached to and made a part of the original contract. It can be explanatory, informational or indicate other requirements of the parties that aren't clearly spelled out in the contract. Sometimes people confuse addendum with an amendment, which is a modification later to the terms of an already-accepted contract.

10. Fixture

Anything of value that is permanently attached to or a part of real property. (Real estate is legally called "real property," while movables are called "personal property.") Examples of fixtures include installed wall-to-wall carpeting, light fixtures, window coverings, landscaping and so on. Fixtures are a frequent subject of buyer and seller disputes. When in doubt, get it in writing.

11. Home Inspection

A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. A satisfactory home inspection is often included as a contingency by the purchaser.

12. Title insurance

An insurance policy that protects a lender's or owner's interest in real property from assorted types of unexpected or fraudulent claims of ownership. It's customary for the buyer to pay for the lender's title insurance policy.

13. Mortgage

A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds.

14. Government and Conventional Loans

A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Mortgages that are not government loans are classified as conventional loans.

15. Appraisal

A written justification of the price paid for a property, primarily based on an analysis of comparable sales of similar homes nearby.

Are there other terms you'd like clarified?  Just ask!

Nope, I'm not a lawyer, accountant, blah, blah, blah... but you may need some advice relating to these items from those folks!

Cabbage: Healing Powers?

If you do a little research on cabbage, you will find claims for the health benefits of cabbage include treatment of constipation, headache, excess weight, skin disorders, eczema, jaundice, scurvy, rheumatism, varicose veins, leg ulcers, peptic and duodenal ulcers, arthritis, gout, eye disorders, heart diseases, ageing, Alzheimer's disease and probably a few others. WHY?

Here are some quick facts:

• Cabbage is very rich in fiber. This helps retain water and forms the bulk of the food and the bowels. Thus it is a good cure for constipation and related problems.
• Cabbage is abundant is Vitamin C.(Vitamin C, being one of the best anti oxidant, reduces free radicals in your body which are the basic causes of ageing. It also helps repairing the wear and tears in the body.)
• Cabbage is rich is sulphur so it helps fight infections in wounds and ulcers.
• *Vitamin C + Sulfur = Detoxifying effects! (purifies blood and removes toxins)
• Cabbage is rich in iodine so helps in proper functioning of the brain and the nervous system, apart from keeping the endocrinal glands in proper condition.
• Cabbage contains various other nutrients such as vitamin-E which keeps the skin, eye and hair healthy, calcium, magnesium, potassium, etc., are very useful for overall health.

So what will you make with your cabbage to help you live a longer healthier life? Cole slaw? Cabbage soup? Cabbage caserole? Add it to your salad or stir fry?

Did I mention it's rather inexpensive? Here is a recipe to try if you are feeling a bit under the weather or any time you are looking for a comforting boost of the rich nutrients in cabbage.

Cabbage Soup

Ingredients:

3 tablespoons olive oil

1/2 onion, chopped (adjust to your onion preference)

2 cloves garlic, chopped

6 cups of chicken broth

1-3 cups of water (depending on if you add the extra potatoes listed below)

1 salt, to taste

1/2 teaspoon black pepper, or to taste

1/2 head cabbage, cored and coarsely chopped

1 (14.5 ounce) can Italian-style stewed tomatoes, drained and diced

*Some people like to add a 1/2 pound or cubed potatoes to give the soupe more volume and girth

*Another popular addition is 1 cup of cooked white beans (or 1 can of white beans, drained)

Directions:

In a large stockpot, heat olive oil over medium heat. Stir in onion and garlic; cook until onion is transparent, about 5 minutes.

Stir in water, bouillon, salt, and pepper. Bring to a boil, then stir in cabbage (and potatoes). Simmer until cabbage wilts, about 10 minutes.

Stir in tomatoes (and beans). Return to a boil, then simmer 15 to 30 minutes, stirring often.

Interested in more recipes?

MORE CABBAGE RECIPE (Green only)

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CHG: Napa Cabbage and Red Onion Salad
Cooking Light: Asian Pear-Cabbage Salad
Cooking Light: Barbecued Cabbage with Santa Fe Seasonings

Cooking Light: Cabbage Gremolata
Cooking Light: Plantation Beans and Cabbage
Cooking Light: Sweet Cabbage Salad
Cooking Light: Waldorf Cole Slaw
Daily Unadventures in Cooking: Linguine with Green Cabbage and Pancetta
Eating Well: Beef Cabbage Stirfry
Eating Well: Hot and Sour Slaw
Eating Well: Stuffed Cabbage Rolls
Epicurious: Napa Cabbage Kimchi
FatFree Vegan Kitchen: Irish White Bean and Cabbage Stew
Kalyn’s Kitchen: Braised Napa Salad with Shitake Mushrooms
Karina’s Kitchen: Stuffed Cabbage with Roasted Sweet Potato & Quinoa
Orangette: Braised Green Cabbage with Onions, Carrots, and a Poached Egg
Recipe Zaar: Cabbage Salsa
Recipe Zaar: Curtido De Repollo - El Salvadorean Cabbage Salad
Recipe Zaar: Curried Cabbage
Recipe Zaar: Hungarian Noodles and Cabbage
Recipe Zaar: Weight Watchers Zero-Point Cabbage Soup

Get a higher appraised value for your house!

Because appraisers hold considerable power in determining market value of a house, you’ll want to make sure your home is as ready for judgment day as possible.

If you find a buyer for your house but your house appraises below the agreed-upon price, you might have to lower your sales price. This is because the house appraisal industry now operates under tightened regulations in the form of the Home Valuation Code of Conduct (HVCC) implemented in 2009 which has resulted in real estate appraisers tending to give more conservative estimates than they once did. Lenders won’t grant a mortgage for more than the house is worth, and even if a buyer has the cash to pay the difference, the deal often dies.

How big is it?
According to the American Society of Appraisers, the best way to improve the value of your home is by adding square footage. Beauty and aesthetics are important to buyers, but the number of square feet matters most to the appraiser. The same goes for the garage: the bigger, the better. Buyers and appraisers see dollar signs when they see the extra storage space.

But before you go doubling the size of your house, consult with a local appraiser to get a cost-benefit analysis. Your appraiser will estimate how soon you'll break even -or if at all. Having the largest home in the neighborhood hurts more than it helps. Paying for a professional appraisal beats making an expensive renovation mistake.

Counting Bedrooms and Bathrooms
Appraisers count the number of bedrooms and bathrooms in a home and attribute value to each one. However, as I mentioned before, don’t over-improve your property for the neighborhood, because you won’t get your investment back at resale. If the largest house in your neighborhood has 3 bedrooms and two bathrooms, having five bedrooms and four baths is going over he top.

Kitchens, Kitchens, Kitchens
Though the kitchen functions as the heart of the home, don’t go crazy with renovations. If no one else on the block has granite countertops and custom cabinetry, you shouldn't install them. Conversely, if you’re the only owner on the block with old laminate counters, consider updating the surface. Make your home as nice as homes in your neighborhood – no more, no less.

The Little Things Count
You’ll get a lot of bang for your buck by doing simple projects, like landscaping the front yard or replacing old faucets and dirty carpet. Installing new fixtures and painting the walls a shade of white, beige or gray are your best bets, according to the Appraisal Institute. It’s not necessary to go overboard with major updates, especially in a soft real estate market. And make sure you get permits as illegal improvements might actually hurt the appraised value.

Help the Appraiser
If you’ve added significant but unseen improvements, bring them to the attention of the appraiser. List features such as underground sprinkling, central air conditioning, in floor heating or other concealed improvements. You or your real estate agent can also give the appraiser a list of recent comparable sales in the area, highlighting any features that might make your home more valuable like fireplaces and decks. Though you’re not permitted to influence the price, you can provide data.




MORE:
Getting the Best Price for your Home |  Curb Appeal  |  Home Selling Tips  |  Home Renovation

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