From the Inspector’s File

Benefits of A Pre-Sale Home Inspection by Stan A. Garnet, ASHI, ICC, MAIA  

So, you think you are ready to sell your home? Do you really know what’s going on in your house? Most people think they know what is happening in their homes. However, if your home is inspected, you may find that there is more going on than you ever thought about or even wanted to know! And, you probably don’t want to hear about your home’s issues from a buyer, right? That’s because you know it will cost you—money to repair or replace before closing, monetary concessions at the closing table, or the buyer backing out of the sale of your home.  

Consider this: Your diligent, potential buyer has an inspection by one of a handful of certified ASHI inspectors in your town. The inspector creates a list of defects. The buyer then analyzes them with his or her agent—what is going on with the subject property? Most likely, the first reaction may be you ask for a price reduction. So they write an amendment to reduce the price: I will buy your home if you drop the price $10,000 for the roof to be replaced (when it may only need a repair) and $15,000 for the rusty HVAC system to be replaced (when you know it can probably be replaced for half the price) and so on. Now, the negotiating begins to reduce the drain of money and, if successful, preserve the sale even if it’s for a lower price rather than lose the sale completely.  

Something that has several years of life left and can be repaired may not be perceived that way by a buyer who wants it replaced. Also keep in mind the value of repairs are doubled or tripled in the minds of buyers. And if you have to replace something, especially a large-ticket item, or find someone in a hurry to make repairs, the costs go up. 

You can preempt this nightmare and the possible loss of money, time, and even the sale of your home, by having a pre-sale inspection.  

A pre-sale inspection before listing your home can reveal its condition before it goes on the market. Based on the inspection report, this gives you three options: repair, replace, or disclose.  

When a buyer signs a purchase and sale agreement to buy your home, the attached disclosure statement you have lists the defects in existence. By accepting your disclosure statement as part of the contract, a potential buyer is also accepting the house in the condition it is at the time.  

Perhaps the roof only needs a repair. Of course, your buyer may exaggerate the defect and ask for a replacement, but if you make the repair and cure the defect before your home is on the market, there is nothing for the buyer’s inspector to report. Perhaps your HVAC system is on its last leg. You have a choice: You can replace it by shopping and trying to get the most cost-effective system or simply to disclose it and note that there is an allowance for its replacement. 

This doesn’t mean a buyer can’t ask to have something repaired or replaced, but it removes an item in question as a surprise, last-minute, closing table negotiation.  

A pre-sale inspection gives you the option of making repairs within your time frame and budget. 

In a soft real estate market, homes are being listed at lower prices than they may have been a year or two ago. You don’t want to lower the price much more and you may not be able to afford to do so.  

Of course, choosing the right inspector is key to this preemptive action.  

Hiring an inspector based on the fee charged may cause more harm than good. What you want is a detail-oriented, trained, professional inspector willing to devote the time needed to provide a complete physical examination of your home. Also consider the report. A full narrative report outlining all defects, both minor and major, will give you a much better picture of a defect than a checkmark on a list. In a state like Georgia that has no minimum standards for home inspectors, choosing an ASHI-certified inspector is the safest choice. (ASHI is to the home inspection industry as NAR is to Realtors®. Both are trade organizations that set high standards of education and performance for their members.)  

Even if you’re not selling your home just yet, if you’ve lived in it for more than three years, having a full house inspection can avoid costly and unexpected maintenance repairs. Dealing with problems or normal wear-and-tear issues at an early stage will give you peace of mind and can save money. 

People take their cars to mechanics regularly. As a homeowner, isn’t it reasonable to spend as much consideration and care for the largest and most expensive investment in your life?

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What’s happening in Georgia?

Contractor Licensing. Right now, in Georgia, there’s no quality control, so to speak, for contractors you hire to work on your home. Next year, that will change.   

Beginning in July 2008, every contractor in Georgia, including builders, will be licensed by the state. The Georgia Construction Industry Licensing Board consists of five divisions: the Division of Conditioned Air Contractors, Division of Electrical Contractors, Division of Low Voltage Contractors, Division of Master and Journeyman Plumbers, and Division of Utility Contractors. The Board protects the public against faulty construction installations and administers standards for the licensing of the contractors in the above professions. In addition to licensing, each will take disciplinary action against licensees. For more information: http://sos.georgia.gov/plb/construct/ 

The State Licensing Board for Residential and General Contractors requires the following to hold a license:

1.  Residential-Basic Contractor (detached one- and two-family homes and  one-family townhouses not over three stories);

2.  Residential-Light Commercial Contractor (same as basic plus multi-family and multi-use light commercial buildings and structures); and

3. General Contractor (unlimited regarding type of work). 

Work costing less than $2,500 does not require a state-licensed contractor which includes most handyman services. 

For more information: http://www.atlantahomebuilders.com/uploads/100121_LicensingDocs/102062.doc

Training. We Teach Houseâ„¢ Institute, the education subsidiary of Inspectors Associates, Inc., has formed a partnership with Clayton State University Center for Continuing Education, part of the state of Georgia university system. 

We Teach Houseâ„¢ Institute is dedicated to raising the educational standards in the inspection, real estate, and building industries with innovative instruction, and for consumers with cutting-edge programs like the SEE-THRU HOUSEâ„¢ which will be a featured exhibit of the upcoming Fall Atlanta Home Show, September 27-30 at the Cobb Galleria Centre. Clayton State University’s Center for Continuing Education is one of only a few universities in Georgia to earn national accreditation from the International Association for Continuing Education and Training (IACET). 

The courses are scheduled to begin in September. They include two certificate courses: 

A 51-hour Home Inspection training course that prepares students to take the ASHI-approved NHIE examination and an 18-hour Home Inspection Report Writing course, new to the industry, for home inspectors and those wishing to work in the industry. 

A third course, Preparing for the IRC Residential Combination Code Certification, is a 72-hour preparation course for the IRC Residential Combination Code Certification (One & Two Family Dwelling) Inspector Certification. Students can register for the entire course or individual modules: Building; Plumbing; Electrical; Mechanical; and preparation for the IRC Residential Code Test. 

For more information, call 678-466-5090 or visit www.weteachhouse.com.

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In case you didn’t know . . .

 On February 17, 2009, the way TV is broadcast will change from analog to digital. While our TV view may not change, the equipment used will. Although this is in the future, manufacturers are now producing digital-convertible TVs and other equipment. If you're planning to purchase a TV or collateral equipment, this knowledge can help you make a cost-effective purchase. For more information: http://www.fcc.gov/cgb/consumerfacts/digitaltv.html

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Question of the Month

 Should I Buy This House? At the end of the inspection of a house I wanted to buy, I asked my home inspector if he thought I should buy the house. He told me he couldn’t tell me what to do. It’s a simple question, why wouldn’t he answer me?  

Well, it’s also a simple answer. Home inspectors report on the condition of a house. They are not there to tell you whether you should buy the house. That is a buyer’s decision. The Inspector is not the buyer who put a contract on the house. The role of a good inspector is to provide you with the needed information about the property so you can make a decision about whether or not to buy the house. A typical response for me to that question is: If you think you’re buying the house at the right price, you love the home and the location, you have done your due diligence and you have the finances to resolve the issues, then I would see no substantial reason for you to walk away from the deal. 

However, a good inspector may also try to dissuade a client if there are extraordinary negative findings. On a few occasions over the years, I have suggested to my clients that they might consider falling in love with another home. It wasn’t an issue that the properties couldn’t be repaired—most properties can be repaired—it was the costs to repair the properties in question that would have been significant, close to the selling price of the house! 

It is not my place to tell someone to not buy a home. It is hoped that in the worst case scenarios, buyers will take into consideration all aspects of the inspection repairs and come to their own conclusions.  

Regardless, the decision to buy still needs to rest with the buyer and not the inspector. We inspectors must stay focused about giving our clients good and valuable information to help them make sound decisions.

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Home Owning 101

Passing the White Glove Test by F. N. Rosenstock 

When you’re getting ready to sell your home, your agent will probably tell you to de-clutter, neutralize and clean. Most people follow their agent’s advice, especially in a buyer’s market. But it’s the little things that are missed that can sink a sale. For me, its dust—on window and door frames, TV screens, lamp finials, ceiling fan blades, the backs of wood chairs, light switches, and my all-time favorite, doorknobs. If I find it, it’s a turn-off.  

You’re probably thinking this is a little obsessive. Don’t get me wrong, I’m as guilty as anyone about dust in my home. I just don’t have time to be consistent. I am, however, very thorough when I do dust which is not as often as I would like. But my home isn’t on the market . . . at least not yet!  

Let me tell you a true story which may explain my perspective.  

My mother kept a spotless house and had a reputation for doing so in the small town in which we lived. One early morning, at least by her standards, a few of her friends came over. They were going somewhere and carpooling in my mother’s car. While they waited for my mother, one of her friends pulled a chair to a window, got on the chair, and ran her white-gloved fingers across the top of a cornice. Her gloves remained white.  

Yes, my mother had passed the white glove test and word spread far and wide—she was so clean, you could eat off her floors.  

Fast forward some 20 years and there is my mother visiting me in my first apartment laughing. I could almost hear her thinking: “What a dump!â€�  

She ran her ungloved fingers across some of my furniture. It wasn’t good. Then, she looked at my floors where my dust-bunny zoo resided. She said with all haughtiness, “You can eat off of my floors!â€�  

Without missing a beat, I replied, “What am I, a dog?â€�  

It’s hard to keep up the level of clean needed to sell a home on a regular basis with commitments to work, family, and friends. Of course, we also need time to for ourselves. But in a tight, buyer’s market, you want to eliminate any opportunity for rejection.  

There are also health benefits to keeping dust-free. That’s one of the reasons why people who have allergies, sinus problems, or breathing issues often remove the carpeting in their homes.  

We are fortunate today that the cleaning implements we have are far easier to use than the old undershirts of yesteryear. But I’m most thankful that we don’t wear white gloves anymore. I know I’d never pass!

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Recipe of the Month

English Toffee Squares from Evie’s Incredible Edibles  

Evie Garnet has agreed to share her favorite recipes with you. [Note: As a recipient of her gourmet cooking and delectable dishes, I can assure you that you will enjoy this. Stan] 

 English Toffee Squares 

1-3/4 cups flour

3/4 cup light brown sugar

1/3 cup butter or margarine, dash of salt

1-1/2 cups pecans, chopped in good-sized pieces 

Topping: 

1/2 cup light brown sugar

2/3 cup butter or margarine

1 cup chocolate chips  

1.   Mix flour, sugar and butter until well blended.

2.   Press into well greased 13 * 9â€� pan.  Sprinkle pecan pieces evenly on top and press nuts into unbaked curst.

3.   In a saucepan over medium heat, stir brown sugar and butter until mixture comes to a good rolling boil.  Continue boiling for 1 minute.

4.   Remove from heat.  Drizzle evenly over unbaked curst.

5.   Bake about 15 minutes in 350 degree oven until topping bubbles.

6.   Remove to rack.  Sprinkle chocolate chips over top.  Let stand to minutes.  Swirl melted chocolate with metal spatula or knife.

7.   After about 25 minutes, run spatula around pan sides to make removal easier.  Cool in pan and cut into squares.

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