One of the most important elements of the Cincinnati home buying experience, and perhaps the most stress inducing portion of the process, is the home inspection.  In Part One of this series, I shared with you this thought: Just because the inspector wrote down a “problem”, that doesn’t make it so. Some “problems” are nothing more than items that can be fixed with a screw driver or by pushing the re-set button on the GFCI outlet. An inspection report that lists 5 or 6 of these types of “problems” nearly inevitably causes a nervous home buyer to doubt his purchase decision. Look objectively at the report. Dirty gas fireplaces can be easily cleaned by a homeowner. Smoke detectors can be installed after you move in. Wobbly banisters serve no real threat to your health. Just get out the screwdriver.

The purpose of the inspection is to determine if the home has any material defects that were not immediately visible when we toured the home together. What are we concerned with?  Roof condition, termites, radon, non-functioning windows that may prevent an escape in case of fire are good examples. A good inspector should be able to help you understand the difference between real issues, and items that should probably be done at some point….like adding an extra smoke detector in the upstairs hall for example.

Your home inspector is not supposed to be there looking for little bits of problems. He is there to identify major fixes, and major problems.  The purpose of writing down wobbling ceiling fans and loose banisters is to help you “perfect” the imperfect home.  These are not written down to give you a list of items to present to the seller. A wobbling ceiling fan should not affect your decision to buy your home.

Now that we have wrapped our heads around the purpose of the report, and the very real fact that we will need to go line item by line item, making a clear determination between fact, opinion, safety and a weekend minor chore list, let’s talk about what else can happen.

Why Didn’t He Find This Problem?

During the 2 or 3 hours that you and your inspector are together, your inspector may miss a few things. Why? Some problems can not be found unless you actually live in the home. A good example is  hot water distribution in the home if two showers are being run. Drippy faucets can materialize at any time. Leaks can develop after you move in and certain conditions arise…..like a wind storm a month after you buy the home.

The “Last Man In” Theory

It has happened that an inspector discovered a leak in the roof that could be fixed with securing shingles, or correcting a problem with flashing. Bring in the roofer that recommends a new roof. Why? The “Last Man In”.

The “Last Man In” theory is this: The last guy to work on a problem is reluctant to just “fix”, he would rather replace. He doesn’t want the exposure of liability, real or imagined, because he was the last guy to touch it.

Just another thought: in the winter, your inspector can not test the air conditioner. If we are having a snowy winter, the roof may not be clear for weeks. When we are experiencing a hot, sticky summer day, the furnace will not be flipped on.  Problems can manifest later. Wind can be damaging and ground settles. Motors on garbage disposers and trash compacters can give out. I’ve never been able to make sense of the life span of a water heater.  I’ve had them last 20 years and I have seen them go in less than 10. Your inspector doesn’t have a crystal ball.

Different Opinions

There is more than one way to build a home. On the Cincinnati market today are homes built what we might call “Good”, “Better”, “Best”.  All are acceptable.  If you are purchasing a 10 year old $150,000 home, it’s probably “Good”. An inspector might call out something that is “Best” because it is his opinion that all homes should be constructed a certain way or contain a particular feature.   If your home is built to code, the seller doesn’t have to make design changes to make the home “Best”. Bring in a contractor and his opinion may differ on how something should be done that was not noted on an inspection report. Remember, you have two different opinions because the two sets of eyes are coming from different approaches.

You home inspector is giving your home a general, overall visual sweep.  He will not light the pilot light on water heaters, pull apart the furnace, or conduct an extensive mold test. He will generally recommend HVAC and fireplace cleaning.  He will not perform any invasive tests.

Remember that your inspection, even if no real material defects are found, is not going to eliminate any and all future issues. When I bought my home in 2000, my favorite inspector performed a very good inspection. However, within the first 12 – 14 months my dishwasher leaked, the ice maker stopped making ice, the A/C didn’t work the following summer, the water softener stopped working and the garbage disposal quit and needed to be replaced. 

I hope this helps you understand what to expect at your home inspection. The home inspectors that we can recommend will try to do a good job for you. They are here to help. Let’s just be sure to take the report, one item at a time, always keeping in mind the purchase contract language and intent of the inspection contingency, and keep the emotion out of it. I bet you’ll find that the stress just melts away and you will enjoy the home purchase process even more.

More Cincinnati real estate information can be found at RealCincy.com

You may have other questions, but here are a few to get you started, so you feel confident in your choice of inspector.

What Will You Inspect? What Does the Inspection Cover?

Electric, plumbing, and structural?  What about targeting areas of concern like fireplaces, HVAC, or the roof?  Make sure you understand the inspectors scope of practice, or the degree to which he will inspect the systems of the home.  In other words, he probably won’t light the pilot light on the hot water heater, but will he run the dishwasher?

How Many Years of Experience Do You Have?

Your inspector should be able to tell you his history in the profession, and perhaps provide referrals if you ask.  Remember that “new” doesn’t mean “not qualified”.  Your new inspector has probably received the latest training, or he has an experienced partner to assist.  Just gauge his confidence in himself, and your confidence in his answer.

Are Other Inspection Services Available?

You may want to obtain a radon inspection, or a wood boring insect inspection. Lead based paint may be a concern.  Ask your inspector for direction on those items of concern.

Have You Completed a Certification Program?

Be sure your inspector is a certified ASHI member, or another similar, professional society with membership requirements.  The American Society of Home Inspectors is the largest, oldest, and most well known society of inspectors, with a common goal of customer service, and promoting the importance of a quality inspection.

How Much Time Does the Inspection Take?

Generally, a home inspection is a 2 – 3 hour process. This much time is necessary to do a truly complete inspection of a “typical” home, and make appropriate notes.  Ask your inspector how much time he allows per home.

How Much Do You Charge?

Costs will vary from one area of the country to the next.  In this area, expect approximately $275 – $500, depending on the size of the home, and the scope of the inspection.  It is money well spent when you consider the overall price of your home, and that you now have a better understanding of what you are buying.

Do You Mind If I Attend The Inspection?

This is your investment, and your opportunity to get to know the home.   No home is perfect. All homes have “quirks”. You need to be there. If the inspector hesitates, or discourages you from attending….you called the wrong inspector. Move on!
What Type of Report Do You Provide & When Will I Receive It?

Some inspectors take photos, others do not.  You may not find that to be necessary if you attend the inspection.  You can bring a camera if you want. Some inspectors use a checklist, and write in a few notes.  Others go back to their office and provide a narrative report via email the next day.  There is no right or wrong answer to the question.  You just need to know what to expect, and when to expect it.

Will You Offer Me Tips, Or Point Out Maintenance Items?

Your home inspector should know why he is there.  Remember, this is not the opportunity to “nit pick”, presenting a demand list of minor repairs to a seller. This is not the time to discuss cosmetic errors, and maintenance items, holding the seller hostage to numerous “nickel and dime” fixes. Some inspectors, in an effort to serve the customer, will cross the line, and start to give advice about how to negotiate the contract for the repairs. Smile, Nod, and walk away.  That is not why he is there! I had one guy recently that counseled my buyers to negotiate on the whole house painting project, when we had already taken that into consideration on our initial offer! Didn’t THAT open a whole can of worms!

Your inspection is to determine the physical material condition of the home, uncover hidden defects, and give you the opportunity to request repairs of the seller.

But a good inspector will be able to point out a few items that could use attention, and offer suggestions for maintenance to keep your home in tip top shape. That’s good advice to take, so be sure to take notes if it’s not included in a “tips” portion of the final report.

I hope you found this information helpful, and it has shed the light on the home inspection process, and given you a couple of good tips for hiring your next home inspector.

More Cincinnati real estate information can be found at RealCincy.com

Imagine pulling up to your new home, and noticing that the bushes and plants have been “thinned”. Imagine walking into the bathroom, and seeing that the sellers have taken the shower doors!
How disappointing would it be to the kids to see that the giant play set that they have been looking forward to playing on, was dismantled, and loaded on to the moving truck!! Yes, all of these scenarios have been played out because someone didn’t understand the difference between “real” property, “personal” property, and fixtures.

We could take up quite a bit of space discussing our system of property ownership and transfer laws, rooted in the land laws of England….but we won’t. That’s for a text book.

To help minimize misunderstandings, I’m glad to say that we do have, pre-printed, on our purchase and listing contracts, items that a buyer can anticipate seeing still attached to the home, or remaining with the property, if those items are currently on the premises. If a seller has an item or two that needs to be eliminated from that list, the seller does have the opportunity to let a buyer know that they should not expect to see, let’s say, a particular chandelier or window treatment. I always take the time to review this important paragraph with sellers, to make sure they understand what must stay, what may go, and what is negotiable.

The same rules apply when reviewing a contract with buyers. We will take the time to review this paragraph so that the homebuyer understands that if they want that amazing stainless steel, 5 burner, gas range and convection oven, they better be sure to write it into the offer! Just because it’s offered in the MLS information, that does not insure that it will be part of the transfer if not included in the contract.  If we don’t write in the wine refrigerator in the finished basement entertainment area, it may not be there on moving day.

While common sense should reign, it doesn’t always. To save us from ourselves, the Cincinnati Area Board of Realtors ® has typed in a few items that would seem to be obvious. Electrical, plumbing, heating and air conditioning equipment, including window units, wall – to – wall carpet, garage door openers/operating devices are, for example, just a few items that any common sense person would assume would be left behind.  You’ll also see shades, blinds, awnings, curtain rods, storm windows & doors, shrubbery and landscaping, fireplace inserts, gas logs, screens and glass doors are noted. Affixed mirrors, bathroom fixtures, including shower doors, all stay.  All built-in appliances, such as mounted microwaves, dishwashers and garbage disposals are attached to the home, and should be left behind.

There are items that not everyone knows should be left behind. That’s where questions arise: above ground swimming pools, water softeners, swing sets and play sets, invisible fence transmitters and collars for example. All pre-printed, considered “affixed” or “permanent improvements”, but often missed by sellers emotionally attached to the play set, or still paying on the water softener. Sellers: Be sure to read, carefully, and exclude immediately if you don’t plan on leaving an item behind!

 Better yet, replace the family heirloom chandelier with something else before the buyers ever see it.  If they see it, they will want it. Refrigerators, clothes washers and clothes dryers, counter microwaves…all negotiable.

The items listed above are not a complete list. Reading, reviewing, and understanding what you are signing is important to the home purchase and home sale process. The Real Cincy Group will make sure you are comfortable with your purchase contract, whether buying or selling,  and understand “what stays” and “what goes”.

More Cincinnati real estate information can be found at RealCincy.com

When you start out on your home buying journey, the process feels a bit overwhelming. If it’s your first purchase, you may not know where to start. If you haven’t bought in awhile…..things have changed!

Most mountains are climbed one step at a time, so let’s break it down.

Touring homes is fun. I’m the realtor, so I get to be the fun part of the process. The important part of the process is your loan. No Loan = No Home.  Lending programs have changed and continue to change in this volatile housing market. Programs that were available a few months ago don’t exist today.  So let’s make sure you have a loan.

Step one:
• Get a pre-approval.  You must work with a good, reputable lender who is working always in your best interest. Your loan officer will have access to a variety of lenders, shop your loan, and always, always, answer any questions you might have.  You should understand your loan.

Your lender will talk to you about your maximum loan amount, but you always determine your “comfort zone.”   In other words, you may qualify for a $250,000 home, but just think that the payments would be more than you want to make on a monthly basis. You may feel more in the “comfort zone” of closer to a $200,000 mortgage. Neither your lender nor your agent should EVER push you outside of that zone. We’ll give you the numbers and the options.  You are the final arbiter of how much you will spend up to the maximum approved loan amount.
Step two:
• Find an agent. Ok….that’s me, in case there were any questions here. As a partner in the RealCincy Group with RE/MAX Unlimited, I am fortunate to partner with 3  wonderful full-time agents.  My husband Randy Hibbard can help you if you want to explore homes in Kentucky.

Step three:

• I know that going out and looking at homes is the fun part. I like that part the best. But….I really believe that knowing what to expect once you find “the one” takes off the pressure, and makes it easier to make that first offer. It only takes 15 – 20 minutes  to get a brief overview of the purchase contract, discussing each paragraph, and breaking it down in to terms you can understand vs. “legal-speak.”   We’ll talk about the home inspection process, your rights and obligations, the seller’s rights and obligations.   We will review the disclosures that you can anticipate seeing from the seller, including the Ohio Property Disclosure, the Lead Based Paint Disclosure if applicable, and any Affiliated Business Disclosures.

Once we have toured homes and you have selected your new home, we make an offer to the seller. We’ll talk about the process specific to your situation while we’re working together. Once we have an accepted contract, meaning buyer and seller agree on terms,  this is an overview of what happens:

• You order your home inspection.
• Your appraisal will be ordered by your loan officer.
• It’s time to purchase your homeowner’s insurance. Your current auto and renter’s insurance carrier is a good place to start for quotes. You will need to have purchased the 1st year’s coverage prior to closing.
• Loan commitment Date – There is a date in the contract by which we must notify the seller that your loan is complete and ready to go!
• Closing Date and time is set
• It’s now time to make calls to the utilities. Gas & Electric, water, trash, cable, etc
• Closing Day!!!
See…..that wasn’t so difficult. You’re now enjoying the wealth building, tax advantages of homeownership!

More Cincinnati real estate information can be found at RealCincy.com

Let’s take the house that Randy and I call home.  The auditor’s site is correct. The above grade square footage is accurate. They are also allowing a little less than 1/3 of the total finished basement, about 600 square feet, as we have a side walkout. The lot size is correct. The assessed value, in ratio to current market value, appears valid.

However, a site accessed from Greater Cincinnati Multiple Listing Service, called Realist, used by many agents in the area, including yours truly, is incorrect. It has the square footage listed correctly, but the lot size is inaccurate. We have just over a 1/2 acre lot, and Realist states that we have a .25 acre lot. 

If our home were on the market, and a buyer that didn’t know any better went by zillow.com, they would not have the correct square footage information (no finished basement square footage noted) to make a decent evaluation.   To complicate matters, they have our home in the wrong school district……not even close.
 Poor information at best!

If you formed an offer on our home, per www.zillow.com  information, I would have to run you off my front sidewalk!

Now, on the other hand, if you recently visited www.realtor.com, then to Find Home Values, and brought us an offer based on their valuation….well, you have yourself a deal!!!  Randy and I can be moved by the end of the month!!
 
There was a $40,000 difference in those two sites alone. Personally, I prefered the www.realtor.com numbers, but I have to confess, as a full time working agent, I knew that “there ain’t no way” my home was worth that much. 2005 yes, 2008 no.

So, all that being said, who do you trust?
Do you trust a web site that is only as good as the information entered by humans, filled with human errors?   A web site that doesn’t know that all the lots in that subdivision are ½ acre minimum, so this stated .25 acre is incorrect? A web site that doesn’t know that when the buyers had this home built, they added a two foot bump, so this square foot information is incorrect? A web site that  did not step foot inside these 5 comps, or  last week drove out of town buyers to homes that are priced exactly the same as yours, and know what buyers expect for a $200,000, $350,000, or $500,000 home?  

If you want an honest and complete Home Evaluation, give me a call or send me an email at jcox@realcincy.com. Randy can help you in Kentucky. rhibbard@realcincy.com

Our promise: we may not always tell you what you want to hear, but we will tell you what you need to know!

More Cincinnati real estate information can be found at RealCincy.com