Preliminary data on Colorado Springs real estate sales in November indicate unit sales for single family homes are down 25.2% from last year, and the average price of $215,470 was 14.5% below last November. These are not good numbers, but keep in mind that the election was pretty much on every one's mind during the October period when most of these sales were put together (or should have been putting together:-). Also, interest rates have improved quite a bit, to 5.5% in the last week, so there is at least some reason to be optimistic about the future! For more details about Colorado Springs Homes Sales Data Trends, click in the link on menu on the right side of this screen.
The weather has turned cold and gray, with snow in the forecast. Quite a bit melted off yesterday in the 60 degree sunny breezy weather, but not all of it. Once again, they are not predicting a lot of snow, but we'll see....
Yesterday we did the inspection on a bank owned property that is only 2 years old, scheduled to close this month. With the house being so new, we were kind of surprised to find a problem with a tankless water heater the prior homeowner had installed. In El Paso County, you are supposed to get a building permit and inspections for this sort of thing, and they did not do either. The new buyer is extra handy and knowledgeable of such things, so it was not a show stopper, but it goes to show how even newer construction can have quirks. This could have been a major safety issue for a buyer, as the venting for both water heaters was partially disconnected, allowing exhaust gases into the living areas.
I could not decide on a photo for today, so I left it off. I'd love to hear suggestions of things you may want to see photos of!
Showing posts with label Home Inspections. Show all posts
Showing posts with label Home Inspections. Show all posts
Wednesday, December 03, 2008
Monday, July 21, 2008
I thought I'd talk some about home inspections today, as I am in the middle of hashing out agreement on some inspection issues on a house I sold a week or 2 ago.
In Colorado, the contract is very specific about buyers rights when it comes to inspection. If the inspection(s) show anything the buyer does not like, they have 3 options. Either accept it anyway, ask the seller to fix it, or walk away from the deal. When the buyer asks for things to be fixed, the seller does not have to fix it, in which case the buyer either accepts the house as is, or walks away.
I for one do not like to see deals die over inspection issues. I've seen some silly stuff, where the seller feels they don't have to fix things because the buyers got "too good of a deal", or "the prior seller wouldn't fix it for us", or "we didn't care that it leaked, why should they", or "we never got cancer from radon", or "the seller of our house we are buying wouldn't do it" and on and on.
In Colorado Springs, we normally get an ASHI or NAHI certified (not licensed, there is no license for home inspectors here) inspector to do a general inspection. It typically costs between $250 - $300, and the good ones do a very thorough inspection of the mechanical aspects of the property, making sure everything works, that outlets are wired properly, roof, siding and window conditions, etc. Radon is an issue here, we generally recommend radon testing ($100) if there is a basement, if there is no basement it is not as common to test for it. Termite inspections are only done if there is some evidence of wood destroying insects. While they do exist here, termites are not very common. Occasionally a structural inspection is called for if there is evidence of problems found by the general inspection.
There are a couple of principles that I think should make this process more civil, and although not all buyers, sellers or other agents may agree, I wish more would consider it at least.
1. If you see inspection issues before you write the contract, include them in the contract, or at least alert the seller when writing the contract. It is risky to assume the seller will fix something that is obvious and unsatisfactory after the contract is accepted, since they are assuming you are ok with those items that are obvious.
2. The 3 S's, Safe, Sound and Sanitary. If an item falls into one of these categories, it is generally a reasonable inspection item to ask for. Buyers, inspection is not Christmas shopping, you are not looking for ways to improve the property over what it is, or otherwise figure out how to enrich yourself at the sellers expense. Strictly cosmetic items should be off limits, unless they are damage that occurs after contract. I like to think of most of the inspection report as a "honey do list" for the buyer after they close, since all homes have normal maintenance items that are somewhere in the middle of their cycle.
3. The Golden Rule. Do unto others as you would have done unto you. If you would not want to buy a house with a leaky water heater, don't ask your buyers to. But vise versa, as a buyer, if you know you can take care of some of the issues easily yourself, you might not want to trouble the seller, who may be stressed out of their minds with other issues.
4. Materiality. Some requests are maybe in a grey area, but if they aren't expensive, and they make the buyer feel more comfortable with the process, in a buyers market like today, the seller should be considering doing the request anyway. It works the other way in a sellers market, the buyer should consider carefully any requests they make that send the seller looking for another buyer.
It has been hot and dry, so I got started in sanding and staining my deck this weekend. I finally broke down and installed the window AC unit in the master yesterday, I have to say that it was nice, given it was still 75 degrees or so at 10 pm last night (that is unusually warm here). It is beautiful, clear and cool (60's) this morning, like it is most mornings in Colorado Springs in the summer.
In Colorado, the contract is very specific about buyers rights when it comes to inspection. If the inspection(s) show anything the buyer does not like, they have 3 options. Either accept it anyway, ask the seller to fix it, or walk away from the deal. When the buyer asks for things to be fixed, the seller does not have to fix it, in which case the buyer either accepts the house as is, or walks away.
I for one do not like to see deals die over inspection issues. I've seen some silly stuff, where the seller feels they don't have to fix things because the buyers got "too good of a deal", or "the prior seller wouldn't fix it for us", or "we didn't care that it leaked, why should they", or "we never got cancer from radon", or "the seller of our house we are buying wouldn't do it" and on and on.
In Colorado Springs, we normally get an ASHI or NAHI certified (not licensed, there is no license for home inspectors here) inspector to do a general inspection. It typically costs between $250 - $300, and the good ones do a very thorough inspection of the mechanical aspects of the property, making sure everything works, that outlets are wired properly, roof, siding and window conditions, etc. Radon is an issue here, we generally recommend radon testing ($100) if there is a basement, if there is no basement it is not as common to test for it. Termite inspections are only done if there is some evidence of wood destroying insects. While they do exist here, termites are not very common. Occasionally a structural inspection is called for if there is evidence of problems found by the general inspection.
There are a couple of principles that I think should make this process more civil, and although not all buyers, sellers or other agents may agree, I wish more would consider it at least.
1. If you see inspection issues before you write the contract, include them in the contract, or at least alert the seller when writing the contract. It is risky to assume the seller will fix something that is obvious and unsatisfactory after the contract is accepted, since they are assuming you are ok with those items that are obvious.
2. The 3 S's, Safe, Sound and Sanitary. If an item falls into one of these categories, it is generally a reasonable inspection item to ask for. Buyers, inspection is not Christmas shopping, you are not looking for ways to improve the property over what it is, or otherwise figure out how to enrich yourself at the sellers expense. Strictly cosmetic items should be off limits, unless they are damage that occurs after contract. I like to think of most of the inspection report as a "honey do list" for the buyer after they close, since all homes have normal maintenance items that are somewhere in the middle of their cycle.
3. The Golden Rule. Do unto others as you would have done unto you. If you would not want to buy a house with a leaky water heater, don't ask your buyers to. But vise versa, as a buyer, if you know you can take care of some of the issues easily yourself, you might not want to trouble the seller, who may be stressed out of their minds with other issues.
4. Materiality. Some requests are maybe in a grey area, but if they aren't expensive, and they make the buyer feel more comfortable with the process, in a buyers market like today, the seller should be considering doing the request anyway. It works the other way in a sellers market, the buyer should consider carefully any requests they make that send the seller looking for another buyer.
It has been hot and dry, so I got started in sanding and staining my deck this weekend. I finally broke down and installed the window AC unit in the master yesterday, I have to say that it was nice, given it was still 75 degrees or so at 10 pm last night (that is unusually warm here). It is beautiful, clear and cool (60's) this morning, like it is most mornings in Colorado Springs in the summer.
Friday, April 11, 2008
I have an inspection today, and thought I would share a few notes about such things. In Colorado Springs, home inspectors are not licensed, but I only work with ones that are certified, usually by either ASHI (American Society of Home Inspectors) or NAHI (National Association of Home Inspectors), and that have errors and omissions insurance. I always attend home inspections for my buyers, because I want to hear what is said in case interpretation is needed in negotiating inspection issues. They are time consuming, but it has really helped in the past to be there, so I continue to do it.
Here, a typical home inspection is around $300, plus some additional services if desired, such as radon testing, water flow and/or potability testing (if the home is on a well), and sometimes we have to get additional inspectors involved if there are indications of mold, wood destroying insects (termites), or structural issues. It takes between 1 1/2 and 3 hours usually. I had an out of state client who said the inspector who came out when they sold their home, was only there for 20 minutes. That would be pretty impossible to do a proper job.
Generally radon testing is always a good idea. Radon is suspected as the #2 cause of lung cancer in the US, and while there are differences of opinion as to what the REAL limit should be for radon (the US EPA says 4 Pcl, in Canada they used to say 10, now it is 5), it is best if you know what you have before you just blow this off. Mitigation typically costs around $1,000 here.
We don't often run into mold, and the inspector will usually look for it to determine whether additional inspection or testing is done. The same applies to wood destroying insects. While termites are not very prevalent here, they do show up from time to time, especially in older neighborhoods where the trees have finally grown up.
Structural issues come up from time to time for a couple of reasons. We have some tricky soil conditions here. Sometimes the builder did not do things right, although this is more rare. Often, site drainage has been modified from what the builder had done, for landscaping usually, and it results in water coming in contact with expansive or poorly compacted soil, and this can create problems. We also have some hillside "creep zones", and even mine tunnels under the ground that can also wreak havoc. The areas most likely to have structural issues to watch for are west of I25, but they can happen almost anywhere.
The most common issues that come up on inspection reports are roof problems (previously undetected hail damage), electrical issues (usually homeowner done), furnace cleaning and servicing, bathroom grout issues and site drainage. The purpose of the inspection is really for the buyer to understand the true condition of the house at closing, so that they know what their "honey do" list will look like. The list of things the seller normally takes care of fall into the category of "safe, sound and sanitary". If any of these areas is affected, we typically ask the seller to take care of it. In Colorado, the inspection clause of the real estate contract is one of the most important contingencies. A buyer can terminate the contract for any inspection issue they choose.
Finally, a shameless plug for my favorite home inspector, Randy Morrow at Hawkeye Home Inspections. He does a great job, has inspected hundreds of homes for my clients, and I trust him completely. His number is 719-330-9821, and he does pre-inspections for sellers in addition to "due diligence" homes inspections for buyers.
Here, a typical home inspection is around $300, plus some additional services if desired, such as radon testing, water flow and/or potability testing (if the home is on a well), and sometimes we have to get additional inspectors involved if there are indications of mold, wood destroying insects (termites), or structural issues. It takes between 1 1/2 and 3 hours usually. I had an out of state client who said the inspector who came out when they sold their home, was only there for 20 minutes. That would be pretty impossible to do a proper job.
Generally radon testing is always a good idea. Radon is suspected as the #2 cause of lung cancer in the US, and while there are differences of opinion as to what the REAL limit should be for radon (the US EPA says 4 Pcl, in Canada they used to say 10, now it is 5), it is best if you know what you have before you just blow this off. Mitigation typically costs around $1,000 here.
We don't often run into mold, and the inspector will usually look for it to determine whether additional inspection or testing is done. The same applies to wood destroying insects. While termites are not very prevalent here, they do show up from time to time, especially in older neighborhoods where the trees have finally grown up.
Structural issues come up from time to time for a couple of reasons. We have some tricky soil conditions here. Sometimes the builder did not do things right, although this is more rare. Often, site drainage has been modified from what the builder had done, for landscaping usually, and it results in water coming in contact with expansive or poorly compacted soil, and this can create problems. We also have some hillside "creep zones", and even mine tunnels under the ground that can also wreak havoc. The areas most likely to have structural issues to watch for are west of I25, but they can happen almost anywhere.
The most common issues that come up on inspection reports are roof problems (previously undetected hail damage), electrical issues (usually homeowner done), furnace cleaning and servicing, bathroom grout issues and site drainage. The purpose of the inspection is really for the buyer to understand the true condition of the house at closing, so that they know what their "honey do" list will look like. The list of things the seller normally takes care of fall into the category of "safe, sound and sanitary". If any of these areas is affected, we typically ask the seller to take care of it. In Colorado, the inspection clause of the real estate contract is one of the most important contingencies. A buyer can terminate the contract for any inspection issue they choose.
Finally, a shameless plug for my favorite home inspector, Randy Morrow at Hawkeye Home Inspections. He does a great job, has inspected hundreds of homes for my clients, and I trust him completely. His number is 719-330-9821, and he does pre-inspections for sellers in addition to "due diligence" homes inspections for buyers.
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