Investor Inspection Services

I’ve noticed an increase in calls related to the availability of investor property in the Jackson market, especially with investors from out of town and local investors that are busy otherwise.  Typically they just need a set of eyes in the field, and not a “Home Inspection” as defined by law or standards of practice of any trade organization, but are specific services for a specific use.  JDE Property Services, has several products providing these services and if one of these wont meet your needs, call us today and let’s work together to develop a solution.  Visit us at our website today!

What’s in the Attic?

I got a call from a realtor the other day regarding a request from a previous client.  Several years ago I inspected the house and I remember the family well since I worked with the wife’s father in a previous life.  The inspection went pretty well until I got in the attic.

Yes, that is a flying squirrel.  The client needed some live-catch traps since apparently the squirrels have returned.  As the realtor and I discussed the solution, it made me think of how important it is to inspect the attic.  When you are buying a home, it’s easy for you to see a lot of the interior and exterior, but the attic is not usually accessible to the average person shopping for a home and there are several things to look for in the attic.

Truss/Rafter Damage and Repair
Are there damaged structural members in the attic? Have there been historical repairs?  Some of these things the current owner may not even know and they may not be obvious yet, but could indicate future problems.

Water Damage
Is water getting into the structure now?  Have there been water problems in the past?  Were the repairs done correctly? Was the repair complete – did they patch the roof but not repair the water-damaged wood?

Adequate Ventilation
Is there enough ventilation in the attic? This could drastically effect the heating and cooling costs of the house.  I’ve actually been in a 5-year-old house (relatively new) that has had 3 owners that did not have an inch of insulation in the attic!

Chimney and Vent Status
You can see the chimney from the inside, and outside but you need to get in the attic and see what’s happening there too.  Also, the vents may look fine on the roof, but are there any problems in the hidden area of the attic?

Electrical Issues
One of the most common problems I find is uncovered junction boxes and outlets in the attic.  There is often “handy man” or “extension cord” wiring to provide lighting that presents problems and possible safety issues.

Fire Damage
The inspector needs to look and see if there is evidence of historical fire damage.  This can include charred/burned areas or areas that have been painted in an attempt to cover the damage and the odor.  (Typically the lumber used in the attic is natural and not painted).  Also, the inspector can determine if the repairs were done correctly.

Squirrel/Rodent Damage
The items that resulted in this article.  The damage caused can range from minor problems with vents, siding, fascia that allowed them access to damaged wiring, structural members, insulation, etc… They may be small, but they can do a lot of damage.

Just remember that the inspection of the attic is a very important part of the inspection process and there is no perfect home, so get it inspected.  For more information about getting a home inspection, visit my website at www.jdeinspections.com

Preparing your Home for an Inspection

Over the years, I’ve had numerous inquiries about what the seller can do to prepare for a buyer’s home inspection.  As a seller, it is in your best interest that things go smoothly and limit the number of negative comments about the home.  With that in mind, I decided to put together a list of items that you as a seller can address before the inspection and in some cases before the house is on the market.

In general

• Replace any burned out light bulbs!  The home inspector is going to flip the switch and if the light doesn’t come on, they do not know if there is a faulty bulb or major electrical issues.  They will not swap out bulbs.  A light that does not work is written up as a repair item.
• Replace broken switch and receptacle covers
• Have GFCI outlets installed by an electrician if they are needed.  GFCI outlets are needed in bathrooms, kitchens, exterior outlets, etc.
• Make sure breaker/fuse panel(s) are labeled correctly.
• Put fresh batteries in smoke and carbon monoxide detectors
• Install new air filters.
• Trim bushes and trees back from the house
• Have the gutters cleaned
• Make sure exterior doors and windows are caulked

Before the actual inspection

• Remember the inspector needs access to the entire house.  Remember to leave any keys needed for fences, outbuildings, utility rooms, etc.
• Leave a copy of the property disclosure statement for the inspector.
• Be prepared to leave the home for 2-4 hours.  Typically, the inspector, they buyers and their agent are present during an inspection.  The process involves pointing out flaws and criticizing your home.  Obviously this can cause stress to some sellers.  Go see a movie.
• If you are present during the inspection, try to stay away from the inspection process.  You will have time to discuss the flaws and remedies after the buyers’ agent discusses the inspection findings with your agent.  I’ve had sellers become argumentative with me over items that the buyers did not care about.
• Move the cars out of the garage.  The inspector needs to see the entire area.
• If the attic access is in a closet, remove the clothes and other items to give the inspector access.  Also make sure access to electrical panels, water heaters, air conditioners and furnaces is adequate (3 ft or more) for the inspector to work.  Basically, if there is anything that might be in the way of the inspector, move it to give full access.
• Make sure the utilities are turned on.  The breakers should be on and pilot lights lit. The main water should be on, and service at all toilets, sinks, etc.
• Make sure that pets will not get in the way of the inspection process.
• DO NOT COVER UP PROBLEMS.  As an inspector, if I find that the seller has intentionally hid something I become more critical in the process.  Also, if I can not inspect an item that should be reasonably accessible, I can only assume the worst.

Home Inspection Benefits for the Real Estate Agent

Obviously, the main benefit for a buyer’s home inspection is to protect your client, but how do you benefit from the inspection?  The biggest benefit for the agent is limiting liability.  Most sellers do not intentionally fail to disclose historical problems or repairs.  They simply forget about the things that occurred years ago.

A home inspection will help eliminate:

• Inaccurate or misunderstood disclosure statements
• False expectations held by the buyers
• Hidden surprises related to needed repairs, costly defects and safety risks

To limit your liability, you should:

• First, recommend a home inspection to your client.  If they decline, get it in writing!
• Offer choices of inspectors to the buyer, but also encourage the buyer to perform their own due diligence (i.e. yellow pages, google, interviewing the inspector)
• Verify that the inspector chosen is licensed
• Disclose any material facts to the home inspector.  Provide a copy of the disclosure statement before the inspection begins.
• If you attend the inspection, be careful not to influence the inspection or put yourself in the position that you can be “accused” of influence.

As a real estate agent, you need to remain objective and you want a non-biased inspection.  Yes, occasionally deals may fall through because of the inspection but in the end your buyer will thank you for encouraging a home inspection.  Remember that you helped them save them from buying “the money pit” and they are still looking for a house (with you!).

Don’t forget litigation is expensive.

What to expect during a Home Inspection

So you’re buying a home and you’ve decided to have it inspected.  What should you expect?

First, you’ve got to determine which inspector to use.  In Mississippi, home inspectors must be licensed.  The requirements include initial education, examination, and continuing education annually.  So first make sure that your candidates are truly licensed.  You can see a listing of all licensees at http://www.mrec.state.ms.us/mhib/index_mhib.html

Also, not all inspectors can inspect new construction.  If you are buying a brand new home (never been occupied), make sure the inspector has the NH designation if you are in Mississippi.

Before you worry about the cost, ask the home inspector if he has experience with the type home you are purchasing.  For example, an inspector’s market may be strictly homes built in the past 10 years – that 90 year old farm house or 40 year old ranch house you are buying might not be within their normal scope of expertise.  Ask for referrals if you feel it is appropriate.

Determine what type of report you will receive.  Although all licensed home inspectors in Mississippi follow the same Standards of Practice, the reports are not standardized.  Some provide narrative reports that are highly visual with digital pictures, etc… Others provide more of a checklist type report.  Determine what you should expect as the final product, how soon to expect it and does it meet your needs.  Also, ask what follow up phone calls or visits cost.

Now, you’ve decided on an inspector either from your interview with the inspector, referrals from friends, or a combination of those and other factors.  What should you expect?

First, a good inspector wants you to be there for the inspection.  Obviously, this is not always possible, but it’s much easier for the inspector to point things out and discuss them with you while the inspection is going on.  You don’t have to take notes or anything, the report will reflect the information later.  And remember, although you may have other friends or family that are interested in your purchase, too many participants might distract or hinder the inspector.  Talk with the inspector about how many people (you and your spouse, or you and your entire family) will be attending the inspection.

How long will the inspection take?  It varies.  Being rushed will create opportunities for inspectors to miss items.  Typically a home inspection can take 2-4 hours.  It just depends on the size, age, and condition of the home.  Don’t get in a hurry.

Finally, READ THE REPORT!  The report I provide clients averages 20 – 30 pages for a home in pretty good shape.  Too often, I have a client that reads the summary on page 3 and then closes the report.  The summary is just that, a SUMMARY.  Read the report from beginning to end.  Yes, there are details that you may or may not be interested in, but there will be information that you need to know.  I can not tell you how many times I’ve had a client call and say I missed a specific item and as we discuss it, “we” determine that it is in the report “they” did not read.

Now, you’ve got a report.  You’ve determined what things the seller should correct and they agreed.  Depending on the item, you may want the inspector to return and inspect the repair.  Most inspectors will provide this service at a minimal fee.  You as the buyer need to determine if this is a service that you need or is it something you can decide on your own.  Hey, you don’t need to pay a professional to tell you the broken window was repaired, but ask for a receipt to make sure that a professional was used and not a brother-in-law.  On the other hand, you might want the inspector’s expertise on other items.  If the inspector knew what was wrong, they will know what is right.

Remember that there is no such thing as a perfect home and the home inspector works solely for you.  Talk with your home inspector and develop a dialogue before the process starts.

Myths about Home Inspections

Okay, let’s be honest.  There are plenty of tales about home inspectors out there.  There are plenty of stories and opinions of why you should or should not hire one when you’re buying a home.  I thought it would be appropriate to address some of the many myths I hear about Home Inspectors and the process.

Myth – The home inspector works for the realtor
FALSE – The home inspector works for the person that hires them.  It could be the buyer or the seller, but the realtor is not involved in the financial transaction with the inspector at all.  The client pays the inspector and in states such as Mississippi where licenses are required and laws dictate what the inspector does, the inspector is strictly working for the client.

Myth – Okay, the home inspector works for me, but is favoring the realtor because that’s who gives them the referrals and they don’t want to blow the deal.
FALSE – I can’t speak for every home inspector, but most rely on referrals from former clients more than they do realtors.  Yes, realtors do provide access to clients, but most referrals come from a friend or a relative that has used the inspector before.

Myth – There’s been an appraisal, a disclosure, and a termite inspection.  You don’t need a home inspection.
FALSE – The home inspection is more detailed in areas not covered by those.  Granted, the home inspection doesn’t replace any of those.  It is an objective opinion of the condition of the home.

Myth – I had a home inspection and the inspector missed several things.
COMPLICATED – Yes it is possible.  There are situations that the item in question may have been in proper condition the day of the inspection, but failed after.  There is also the possibility that it might have been a defect concealed behind a wall or some other area that was not readily accessible to the inspector.  You have to remember it is strictly a visual inspection of accessible areas and systems.

Myth – Everything reported in the home inspection report must be fixed before closing.
FALSE – In a perfect world yes.  In reality, it is information for the people to use during negotiation or at least to be aware of when they take possession of the home.

Myth – The house is being sold as is, so there is no need for an inspection.  The seller is not going to repair anything anyway.
COMPLICATED – If the only use you have of a home inspection is for negotiation, you are probably right.  Wouldn’t you really like to know as much about the house before you buy it?  Go into the transaction with as much information as possible and you know what to expect when you own the home.

Myth – I don’t need a home inspection, I’ll take a general contractor and see what he thinks.
COMPLICATED – The home inspector’s only expectation from you in the future is referrals and possibly future business – of course he hopes your check doesn’t bounce.  A general contractor on the other hand typically looks for repairs that they are familiar with, and the likelihood that you are going to hire them in the future.

Myth – I know a lot about handyman projects and construction.  I don’t need an inspection.
FALSE – I’m a licensed inspector and have hired an inspector for each home that I have purchased to live in.  Rose colored glasses can hide quite a few defects.  The report you hold in your hand later by the objective party might help you realize how much work the house really needs.

Home Inspections for Sellers????

Trying to sell your home?  You need to get it inspected!  Sound ludicrous? Let’s examine how a pre-sale home inspection might help you sell your home.

First, you get to be there when the home inspection occurs.  Typically, when a buyer’s inspection occurs, the seller is not present.  There may be information that you can provide the inspector that will help them in the process.  That stain under the sink might be from a leaking bottle of cleaner as opposed to a faulty pipe or historical plumbing problems.

Next, it attracts buyers and increases curb appeal.  Think if your realtor could put in the MLS that the house was already inspected.  The potential buyer knows that there is a pre-closing fee that they just saved and that the seller is not out to hide anything!

It reduces selling and closing time.  You have the inspection already.  You don’t have to wait for the buyer to schedule an inspection and get the report.  Just hand it to them!  Have it available for the potential buyers when they come see the house the first time.

Reduce the possibility of buyer apprehension or anxiety, also known as cold feet syndrome.  They know what they are getting.  They’ve got your disclosure and a report from a third party that goes into detail on the true condition of the property.  It also aids you in full disclosure compliance.

But wait, what if there are problems with the house you’re trying to sell?  Simple, you know about it now and not two days before closing.  You have the opportunity to repair the items or make allowances for the repair in the contract.  It’s real simple.  You are going into the transaction with as much information and confidence possible.

Remember there is no perfect home, and what you don’t know could cost you.

To see a sample of what you can expect in a home inspection report, go to http://www.jdeinspections.com/images/JDE%20Sample%20Report.pdf

Did You Get It Inspected?

Why Buyers Need a Home Inspection

So you’re about to buy a home.  You’ve spent time searching.  It’s in the right neighborhood.  You think it’s everything you want, but it’s a big decision.  It’s probably one of the biggest financial decisions of your life.  Why not go into it with as much information and confidence as possible.

Face it, you’ve only been in the house a couple of times.  Each time, you’ve had a realtor or the seller present.  The visits are quick and exciting, but how much do you really know about the house?  You’ve got a disclosure statement, filled out by someone interested in selling their home but how much does that really tell you?  The seller has been living with the problems and flaws so long they don’t even think about them anymore.

That’s why you need to get it inspected by a licensed Home Inspector.

A buyer’s home inspection is just that.  A home inspector is a true third party that is there to represent the buyer and provide an honest, impartial opinion of the home’s condition.  The inspector gets a flat fee, whether the sale goes through or not.

The inspector’s job is to take a close view of the home’s structure and systems and report any deficiencies whether related to safety, repair, maintenance, etc.  As a trained professional, a home inspector is there to develop a report for the client/buyer so they can make an educated decision in the purchasing process.  This report can be used to end the deal if the house is in bad condition, to negotiate repairs or allowances, or just to make sure the buyer knows what they are purchasing.

Home Inspection reports cover:

• Structure/Foundation
• Exterior
• Interior
• Insulation/Ventilation
• Major Appliances
• Fireplace/Stove
• Plumbing
• Heating/Cooling
• Electrical
• Roofing

Remember there is no perfect home, and what you don’t know could cost you.

To see a sample of what you can expect in a home inspection report, go to http://www.jdeinspections.com/images/JDE%20Sample%20Report.pdf

Welcome

Welcome to the JDEInspections blog.  JDE Inspections provides home inspections and a variety of other real estate services throughout central Mississippi.  Look for future posts regarding not only home inspections, but real estate in general.