National Re-Read Your Home Inspection Report Day

It seems we have a holiday for everything.  There is the upcoming day to give thanks plus we have a day to recognize moms and dads and grandparents and even secretaries.  A few weeks ago I heard  it was National Adoption Day.  We have a day to appreciate cats and dogs and even groundhogs.  And it seems there is a day to recognize every type of cancer imaginable.  Well, I'd like to propose a new holiday.

I think we should call it National Re-Read Your Home Inspection Report Day.  You know, that document you received about a week or so after your offer was accepted from some guy with a ladder who poked around for a couple of hours to find everything wrong possible with the property.  You remember, that document that caused you to go pale as you read it and kept you awake half the night thinking about it?  Chances are, if you've already made a mortgage payment or two or twenty, that report is in the back of your closet (or hard drive) collecting dust (or whatever collects on untouched computer files).

Often the next time that report is thought about is years later when you are signing on the dotted line to put your house on the market.  Gee, let's see what the buyer's home inspector might say about our house!

Unfortunately, what may have been a little minor notation five or ten years ago could now be a major defect if it wasn't taken care of properly.  For example, a little water infiltration could require a $5 tube of caulk to remedy but if it is not taken care of, could cost thousands to replace structural rot. Chimneys are another area that rapidly deteriorate if they don't get the attention they need.  It's never fun to fix a chimney or roof or furnace but it is even less fun to do it to sell your house.

I often tell buyers to go through the report and make a list of what's deal killers (items that the seller must take care of before we will go forward) and put the other items on a "honey-do" list.  Unfortunately, in the excitement of moving in, unpacking and decorating that honey do list tends to be forgotten.  So, let's designate a day to find our reports and read them.  And rather than being lulled to sleep like a plate of turkey, let's take action to repair and maintain our properties.  

Happy Thanksgiving friends.  I hope the day brings you good food, good times with family and friends and many new wonderful memories.

Heating Season

Yay!  November is here and the bickering can cease.  Eleven months of the year, I have a wonderful, strong marriage but my husband and I just don't seem to get along in October.  You see, he believes you should control the thermostat by the calendar and I think that the thermometer is a better gauge.  He believes in not turning the heat on till the first of November.   And when the house is 58 degrees, I go to local restaurants to use the bathroom.  In fact, I spend as much time away from home as possible.

The past year, I've run into more then my fair share of bad furnace situations, and so this seems to be a great time to chat about furnace safety and care.

During my real estate transactions during the past year, I've run into at least three furnaces with both cracked heat-exchangers and totally clogged furnace filters.  That's not a coincidence.  When you fail to change your furnace filters and they become clogged, a forced-air furnace must work much harder to force that warm air through your home.  That stress can cause a premature crack in the heat-exchanger.  In one case this year, the furnace was only five years old but so was the furnace filter.  It had never been changed.  So, please, please, please determine how often your filer needs to be changed and do so.

A cracked heat-exchanger can produce carbon monoxide, especially in newer high-efficient furnaces.  So can water heaters, gas stoves, gas fireplaces, automobiles and other appliances that burn gas.  That is why New York state law requires all homes to have a working carbon monoxide detector.  Since carbon monoxide is a completely odorless gas, it's not a bad idea to have a detector on each level of your home.  And a carbon monoxide detector lasts about 5 to 7 years and so it's not a bad plan to purchase a new one every 2 to 3 years and rotate them out of service.  Don't forget to change out those batteries when you do your smoke detectors.

Whenever, I list a property I strongly encourage the seller to have the heating system serviced and inspected before the property goes on the market.  That is because if there are issues, we want to know about them before a buyer does.  To learn that there is a bad furnace after an offer has been accepted, means only one thing and it is not good for the seller.  It constantly amazes me how many families do not have their heating system regularly maintained by a professional.   If you need a referral for someone that is reliable and reasonable, don't hesitate to let me know.

Carbon monoxide safety is a personal issue for me.   I lost a brother to carbon monoxide poison more than 30 years ago.  If you switch a button and it suddenly gets warm in your home, it's easy to get complacent about furnace safety but I hope this will serve as a wake up call.

Stay warm!

Less Real Estate Drama With Home Inspections Before Listing

In a typical real estate transaction in the Rochester area, the buyers find a house, write an offer, comes to term with the seller,both sides celebrate, and then the home inspection happens.  Often there are surprises, both for the buyer and the seller and that's when the real drama can begin.  Buyers get frighten and sellers get angry.  It's no fun for anyone.

Last year I sold a few homes in which the property was inspected before the house went on the market.  Sellers have the opportunity to make repairs before the house is listed. And buyers receive the report before writing an offer with a pretty clear understanding of what's been repaired and what they will need to address as the future owners.  Buyers can make a fairer offer when they have all the facts and there is no re-negotiating the contract after the inspection.

Inspecting a home before it goes on the market is not cheap.  Expect to pay between $300 and $400 for a home inspection.  Plan on another $100 or so to make sure the furnace or boiler and in top working order and if there is a fireplace, you will also want to do a chimney safety check for approximately $75 to $100.  These fees add up but rarely is a buyer's request for a repair credit less than $1000.

Last year alone, I was involved in 3 transactions in which buyers made an offer based on there being an old furnace.  During the course of the inspections, cracked heat exchangers were discovered and guess what, each buyer ended up with a band new furnace.  Happy buyers for sure, but very angry sellers.

I'm all for less drama in real estate and believe that less surprises equals less drama.  I'd love to see all Rochester area sellers have there home inspected before going on the market, or at a minimum, have the furnace serviced.  If you'd like more information, don't hesitate to give me a call or send me an e-mail.

Home Buying Seminar - Wednesday, June 24, 6 to 7:30 pm

I've not done a home buyer Seminar in a couple of years but there is so much good stuff going on right now with the $8000 first time home buyer credit that the timing just seems right. So mark your calendar or tell a friend.

Wednesday, June 24, 6 to 7:30 pm at 2024 W. Henrietta Road, Suite 2A; which is the home office of First Rochester Mortgage Corp.

I'm real proud of the impressive panel of real estate professionals that have agreed to help with this project.

* Home Inspector Adam Backus of Pillar to Post will share tips on what to look for before putting in a purchase offer.

* Attorney Steve Kruk of Kruk and Campbell will discuss the $8000 Federal Tax Credit for first time home buyers.

* Steve D’Amico, Vice President of East Cap Mortgage will chat about the current mortgage environment.

* Mary Shelsby, Broker Associate with ReMax First will offer advice on the great adventure of finding the perfect home.

We will be serving food, so it is crucial for an RSVP. If you’d like to attend but this particular day or time are not convenient, please let us know so that we can schedule another event or a one-on-one consultation. RSVP to Mary Shelsby at MShelsby@gmail.com or call 585-756-7457.

If you RSVP before Friday June 19th, I will send you a coupon for $200 off your closing cost from eastCap mortgage.

Cash for Buying a House

For the past two weeks or so, there have been rumors galore that first time home buyers will be able to borrow their federal tax credit in order to use that money for closing costs and down payment towards the purchase of a home. The details have not yet been worked out but I think this is going to happen. There are some technicalities that have to be worked out because basically you are not suppose to borrow money in order to have the funds necessary to qualify for a mortgage. Hopefully this will be worked out soon because there is not a lot of time left in order to qualify for the tax credit. The purchase must be closed before December 1, 2009.


I have also heard rumors of homebuyers amending their 2008 tax returns to claim the credit before they close on a home in order to get the money early and use it at closing. I’m not a lawyer and this is not legal advice BUT I don’t recommend you doing this. Lying to the federal government so that they will send you thousands of dollars doesn't seem like a prudent advice for individuals that enjoy the simple things in life, like freedom.

Anyway, I’m working with plenty of first time home buyers right now and questions keep coming up about the disbursement of money, i.e., when and how much. Here are some general guidelines.

When you write a purchase offer for a property, you need to be willing and able to make a good faith deposit within 48 hours of when your offer is accepted. Deposits are a minimum of $1000 and are made payable to the listing broker. That money is held in escrow (not given to the seller), is refundable if the contract is canceled due to contingences, and is used towards the closing costs or down payment of the property.

Generally, the buyer has up to one week to conduct inspections of the property and these are done at the buyer’s expense. Inspections include a home inspection ($300 to $500), radon test ($150 to $200), mold inspection ($200 - $500), chimney inspection ($125 0 $200) ect. In addition, if the house is on septic system and/or has a well, they will need to be inspected. It is not unusual for the seller to pay for these inspections but occasionally the buyer will prefer to pay for these themselves just so that the inspector works strictly for the buyer. Well inspections and water testing can run from $35 to $250 and septic pumping and inspection is $200 to $400.

The next outlay of cash is usually to the mortgage lender. Some lenders will collect an application fee at the time the mortgage application is made ($200 - $300). Nearly all lenders will require that the appraisal be paid up front ($250 - $400).

Things get quiet after mortgage application and the next big expense is homeowner’s insurance. Mortgage companies require that you pay for the first year of insurance up front and that the insurance binder is faxed to your attorney before closing. Insurance premiums are based on the replacement cost of the property plus there is consideration of personal possessions, so I won't dare to quote a range for homeowner’s insurance, but do encourage you to shop around.

The day before closing, you will receive a call for your attorney’s office telling you how much money to bring to closing. Hopefully, any surprises with this phone call are good ones, as you will have received and signed a “Good Faith Estimate” at the time of mortgage application. Some of the language on the GFE is confusing to the layman. The GFE will give a total of closing costs, prepaid items which includes interest and mortgage insurance and the down payment. The GFE should include “Total Estimated Funds Needed to Close” and this should be fairly close to what you are asked to bring to the attorney’s office.


I hope this helps clarify how much money is needed when in the home buying process. If you’d like more information or a consolation, don’t hesitate to give me a call.

The Purpose of the Home Inspection

Okay, I'm getting grumpy! I'm tired and have not had a day off in a while. With that being said, let me get this off my chest!

The purpose of the home inspection is NOT to renegotiate the terms of the sale. If you put in a purchase offer on a house with a tarp over the garage roof, don't expect $5000 concession because the inspector says the garage is a piece of crap.

The purpose of the home inspection is to discover defects that were not obvious at the time of purchase. There is no such thing as a perfect house. The inspector will let you know what is imperfect about it and you decide if you can live with that imperfection. Sometimes the seller will fix the imperfection. Sometimes the seller will offer a credit so the buyer can fix the imperfection. But the inspection is not intended to renegotiate the terms of the purchase.

There! I feel better! Now, hopefully I can go back to my normal smiling self.

The Seach for the Ugly House

Some of my clients think I'm a little crazy when I advocate for buying ugly houses. Now I'm not talking butt-ugly. I'm talking about the type of ugly that a coat of paint or perhaps new carpet will fix. And I advocate for that type of house because that is where the best deals are.

Houses with "Pottery Barn Decor" are fun to look at but you will "ohh and ahh" all the way to the bank if you purchase this type of house. Sparkling clean and tastefully decorated houses command top dollar but keep in mind that the furniture and art work will be gone when you move in.

Everybody wants to buy a beautiful house. It's just not as exciting to tell all your friends, "Well, it has green and orange shag carpeting from the '70's BUT the roof is new and the furnace is only a couple of years old!"

Here are a few tips for ugly house shopping.

1. Do your homework so you can budget for remodeling jobs. Kitchens, for example, and be remodeled for a few thousand dollars or tens of thousands, depending on your standards. Even wall-to-wall carpeting comes in a wide variety of designs and quality and so no real estate agent can honestly give you a ball-park figure for these projects.

2. Have a checklist so that you are certain to check all the mechanicals, such as electric, hotwater heater, roof. It would be down-right depressing to have an ugly house that also leaks every time it rains. This is not to say you won't have the house inspected, but you should check for obvious problems before you put in an offer.

3. Analyze the layout. This is especially important in kitchens. You may be able to improve its looks but it also needs to function well.

4. Don't be afraid to ask for help. If you'd don't know how to decorate, hire an interior designer. Generally, they charge a few hundred dollars for an initial consultation which is a bargain if you saved thousands on the purchase.

Want to go ugly house shopping? Give me a call. I don't mind showing you beautiful houses as well.

www.RochestersBestHomes.com

Buyer Beware!

With all the media attention on the sub-prime mortgage situation, it seems that hardly a day passes when some buyer doesn't ask me about foreclosures. It seems that everybody thinks that is the best way to get the best deal in Rochester real estate.

Today was no exception. I was working with a buyer looking for a multi-family investment property in the city of Rochester. He was pretty excited about a new listing and could tell that it was a foreclosure by all the tape and winterizing stickers in the bathroom photo. The price was right and the description claimed it was a good property in average condition.

I made the appointment and met the buyer on site. Our first impression was the property was better than average condition. The kitchens and baths were dated but functional. One of the apartments had nice gum-wood trim that had not been painted. Each unit had three bedrooms of respectable size. The roof was older but still functioning.

We were both excited about "the find" as we headed back down into the basement. Suddenly my client realized that there was no plumbing in the basement. Someone had gone through and cut the pipes and harvested all the copper! Only in real estate can a house without plumbing be described as in average condition!!!

I often discourage young, first time home buyers from even looking at foreclosures. In most cases, the water, electric and gas have been turned off which makes even major defects obscure, unless you pay several hundred dollars for an inspection. So if you think buying a foreclosure is right for you, remember the old adage, "buyer beware!"

Carbon Monoxide - Avoid and Prevent!

While inspecting a Wyoming County home recently, I encountered another carbon monoxide concern. This is a good time of year to consider the potential hazards associated with Carbon monoxide.

Carbon monoxide (CO) is an odorless, colorless gas produced by the combustion of fuels such as natural gas, oil, wood, and propane in devices such as furnaces, water heaters, and stoves. Harmful interior levels of CO can result from incomplete combustion of fuel, improper installation, or blockages, leaks or cracks in the venting systems.

The most recent issue that I found during a home inspection was a blocked hot water tank vent. Issues such as back drafting, disconnected or blocked vents (along with several other sources) can cause elevated CO levels and the results range from flu-like symptoms to death. According to the U.S. Fire Administration, carbon monoxide poisoning claims approximately 480 lives and sends another 15,200 people to hospital emergency rooms for treatment.

Sometimes I am surprised that people are living in a home with significant CO concerns. I wonder how many people suffer form CO poisoning and don't know what's causing it. Someone in a "tight" house might have symptoms with only minimal amounts of CO, while someone in a house with more air leakage might get away with no symptoms. There are many sources and factors related to CO poisoning- so get informed about your particular appliances and have them serviced regularly.

Also, remember that CO detectors usually only last for 5-10 years before replacement is recommended. Different types along with location of the devises need to be considered as well. If you have a CO detector that signals concern, open windows and ventilate your home with fresh air and contact a qualified professional to investigate. If your alarm sounds and you are drowsy or light-headed, leave the house and call 911 from your cell phone or neighbors home and consider a medical checkup for CO poisoning.

If you are suffering from chronic flu-like symptoms, see your doctor and ask him if it could be low-level CO poisoning. We should all be more conscientious of this leading cause of accidental poisoning.

Adam Backus- Pillar To Post

Curl up by the fire

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RELAXATION TIME GET MORE OUT OF LIFE!
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I have noticed that homebuyers often get excited about the presence of a fireplace in their prospective home. I can see their plans to make Christmas memories, they might be thinking of self sufficiency during power outages, or just a romantic evening in the cold winter season.

Fireplaces are warm and cozy, but they are also responsible for about 36% of all residential fires. You can increase memories and reduce trouble by following these tips.

Choose the right wood.

Use well-seasoned firewood that has been dried for six months to a year. Logs that are soft or moist can burn off creosote, a residue that can build up in chimneys and is the leading cause of chimney fires.

Weed out color.

Newspaper and magazine ink contains chemicals that contribute to buildup in chimneys.

Close the screen.

Never let a fire burn without a sturdy screen in front of it to prevent flying sparks from catching on something flammable.
Schedule an inspection.

Fireplaces and wood stoves should be inspected annually by a certified professional for obstructions and creosote buildup.


Not all wood is created equal.

Denser woods, such as oak, birch, and maple may cost more, but burn longer and hotter. Consider ash tree wood as a good option even when not well-seasoned.



Please don’t start a fire prior to a full evaluation by a qualified person.

Have a great season,

Adam Backus- Pillar To Post

Best Money Spent

One of the most misunderstood concepts of purchasing a home is the contingency for a home inspection. Homes don't pass or fail inspection. Instead, inspectors simply document the conditions found at a home and then a buyer must decide if they can tolerate the findings of the inspection.

In most cases, purchase contracts are written so that a buyer cannot cancel a contract based on the findings of an inspector. Instead, the buyer must first give the seller an opportunity to correct the defect and if they refuse, then the buyer may then cancel the contract.

Everybody has a different tolerance level for repairs. I've seen buyers freak-out at a dripping faucet and others that are not swayed by a roof needing replacement. Having an inspector that does a thorough inspection and can communicate clearly and calmly about findings is key to buyers making decisions that are best for them. And whether the inspection report leads to a canceled contract, neogiated repairs or simply a better night's sleep, nearly all my cliets report that the $300 or so dollars spent on their inspection was the best money spent.

I've asked inspector Adam Backus with Pillar to Post to join this blog because I like the way he works. He has agreed to provide home maintaince tips and other information of interest to individuals considering buying and selling real estate.

And should you need a home inspection, I encourage you to call on Adam. He can be reached at 585-346-9560.

Sprung a Leak

We almost didn't do a final walk through. These buyers were suppose to get possession of the house they were buying 5 days in advance of closing. That would have allowed them to move at a leisurely pace and then a day of cleaning up for the new owners of their house. At the last minute the seller reneged! And in the panic of fast paced packing, the sellers almost declined the opportunity to walk through the house one last time before they owned it.

"But what if they are refusing early possession because they have something to hide," my client asked? So we all jumped in our cars, drove to Mt. Morris and exercised our right for a final walk through. It is a good thing we did.

The primary purpose of a final walk through is to make sure the property is in the same condition as when the purchase offer was accepted. In addition, a typical sales contract calls for heating, electrical, plumbing, and other systems as well as included appliances to be in working order at the time of closing and the walk through is the last opportunity for the buyer to make sure that that is the case. At the walk through, the buyer should fire up the furnace, open the garage door, look beneath curtains or whatever else is necessary to make sure all is in working order.

Back to Mt. Morris. We turned on all the lights, turned up the heat, ran the dishwasher. We even flushed all the toilets and ran all the water which is how we found the problem. There was a leak in the plumbing in the master bath, a significant leak, which caused a puddle in the basement. But we found it! Since there wasn't time to get a plumber in, the closing was held on schedule and funds to cover the plumber's bill were held in escrow. And hopefully, everyone lives happily ever after.

If you are buying a property, don't ever consider not doing the final walk through!