New Numbers for a New Year!

Hello all!  It’s been crazy- busy at our home, and I’m sure at yours too.  I hate to be a cliché and write about looking back, and looking forward, but hey, it’s January of a new year. What can I say?

Ok. I promise.  I’ll keep my philosophical ranting, and resolution making and breaking discussions, off this page, and stick to some good old fashioned MLS market data to keep you up to date.

The following data is for single family homes only, Butler, Warren, Hamilton, and Clermont County. 

This data is compiled from The Greater Cincinnati Multiple Listing Service, as of about 10:30 a.m. or so today.
Once again, a “Distressed Property” is a bank owned or government owned foreclosed on property, or a property still owned by a consumer, but requiring bank approval for a “short sale”.

Obviously, the numbers speak to the issues we have all experienced in the local real estate market.  I want to point out that, while indeed, there was an explosion of distressed properties for sale over the last few years, the MLS wasn’t as strict or accurate “pre-market correction” as it is currently.  In other words, we didn’t keep track as well of short sales.  Many real estate agents didn’t even know what a short sale was until the last couple of years.  I remember a conversation in early 2007 with 25 year veteran about my fear that we would be seeing more and more short sales in the coming years.  Her response…”what’s a short sale?”  So there you have it.

Here are some current numbers:

2010 To Date as of 10:30 a.m. January 4, 2010

One thing that jumped out at me here is that while the average list price in the 4 main counties of Greater Cincinnati is $240,144, the average list price of the home under contract, waiting to close, is significantly lower: $157,854.  That tells me that the lower priced “bargains” continue to fuel this market.  It will be interesting, of course, to see what this next year brings.  The good news is that if this is your snapshot in time to be entering the real estate market as a buyer, there is still plenty of good reason to do so: low interest rates, tax credits, good inventory, and you still have the upper hand in most markets and price points.

Sellers:  don’t be discouraged. If this is your snapshot in time to put your home on the market,  just be sure to hire the team of agents with a proven track record, good marketing ideas, and a head for numbers ( hint, hint).  Priced well to be the “next best value”, your home will sell.    The RealCincy Group is here to offer advice and keep you up to date on the competition. In Ohio & Kentucky, we can help.  With our OUTSTANDING marketing and trend watching, we’ll get your home sold

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

Stalled Luxury Home Sales

A few months ago I gave you information about the upscale housing market in the Greater Cincinnati area.  Those areas included Butler, Warren, Hamilton and Clermont counties.  We discussed the Jumbo Mortgage Market, and how tight control on the interest rates for the luxury home market may be slowing the housing market, at the “grass roots” level.

I just put together an update with closed sales stats through November 15, 2009.  I thought you might like an update.

Single Family Sales: Butler, Warren, Hamilton and Clermont Counties.
Source: Greater Cincinnati Multiple Listing Service

It’s possible that once the current 23 pending sales do close, that we the “Over $700k+” sales will not come to the anticipated 138 total.  We will just have to see if those homes, in this buyer driven market, that are priced close to the $700,000 list price, do indeed sell over $700,000

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

More Mortgage Changes!

Having just missed Halloween, I may be a little late to try to scare you with a horror story or two. But hey! There’s never a moment when a good story to shake things up isn’t welcome.  Today, I wanted to share a potential trend that a few of us have experienced in the “wonderful world of real estate”: the lenders becoming involved in the home inspection negotiation process. If that doesn’t scare the living daylights out of you, maybe it should.

At the risk of redundancy, I’ll say it again. Home sellers REALLY need to have a home inspection prior to putting their home on the market. The little quirks and irks you’ve lived with for the last 5 – 15 years will show up on the inspection.  I know you don’t think the way the dryer vent exits the house right next to the outside air condition unit is an issue, but your buyer will. It’s been that way since the house was built in 1983. Doesn’t matter. It will show up on the report. 

I have already gone on about how this inspection portion of the purchase process can spook a nervous buyer and irk a seller who feels as though he has gone as low as he can go in this market, and he can’t be bothered with $300 roof repairs, $500 worth of broken window seals and a fireplace cap that needs replaced.  Knowing this information up front and having already made the necessary repairs, puts this seller in better negotiating position. And in this “buyer’s market”, wouldn’t you, as a home seller, want to find SOME advantageous position? And buyers, wouldn’t you like to buy a well maintained home that isn’t fraught with “surprise” issues? Just buy the home, bring your toothbrush, and move in!

A couple of lenders in the area have begun to ask for a copy of the home inspection summary page, and the addendum between buyer and seller outlining how any repairs will be handled.  One lender insisted on a physical re-inspection of the property prior to closing on what most of us would consider a “typical” FHA purchase.  Because the majority of home buyers do not care to pay for a 2nd home inspection, generally speaking, a walk-through prior to closing and collecting receipts for the work performed will insure compliance of the addendum. This issue arose: who pays for the inspection, and who is now the inspector’s client?

Another problem to consider is this:  the lenders are now telling buyers they want a “sign off” on the repairs, a statement of satisfaction with the work performed, well in advance of our contractual opportunity to complete our  “…within  48 hours prior to closing…” examination of the property. Generally about 5 days prior to closing so the paperwork can be processed in time for the appointed closing date.  Moving is a busy time, and most sellers wait until the last minute to complete repairs, especially if the luxury of a few days of occupancy after closing is negotiated into the contract.  We need to know that this is a possibility, and amend the wording of our purchase contract and / or addendum, to insure the buyers can comfortably sign off on repairs that they have had the opportunity to inspect. In other words: Sellers be ready because my buyers and I are coming over sooner!

Not to be an alarmist, but I am concerned a bit that if underwriters or loan processors 4 states away review an inspection report, and the agreement between buyer and seller on certain repairs, then decide they don’t like the agreement made between buyer and seller, are they now opening up the opportunity to insert their opinion on the resolution?  I don’t know. That is a little scary to me.  If your eyes are rolling at me right now, I understand. But loan processing is a very different scenario than it has been in the past.  I’ve had this discussion with agents and loan officers who all wonder if this is a passing fad, or harbinger of even more changes to come. 

Personally, I think much of this issue could be resolved by sellers taking the bull by the horns and just getting their homes in order prior to putting them on the market.  Make sure the GFCI plugs are where they need to be. Have a fireplace? Get it cleaned and inspected. Make sure it’s been deemed safe to use by a pro. Clean the gutters and tighten the wobbly ceiling fans. I know. Those are not “material defects”, but trust me on this one: they will be on the report.  Have the HVAC cleaned and inspected. It will show up on the report if you don’t have receipts to show it’s been done.

Do you have a list of things to do prior to closing? Please complete those items ASAP.  Not all buyers have their “backs against the wall” and will be certainly in a position to delay closing until they are satisfied that all work has been completed as contractually agreed.  A delay in closing may not be in your best interest either, so fix those windows, and clean those gutters because we are coming over to re-inspect!

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

Our "leaf lawn"

Did you see that gorgeous full moon last night?  It was a beautiful sight.  I love the chilly nights and cool days.  The leaves are everywhere! I have to confess:  We don’t do a great job of raking at our house. Never have and probably never will. We just like the look of the scattered leaves. I am glad to see that several of our neighbors do too.  We aren’t the only house on the block with a “leaf lawn”.

Are you ready to take the time to look at year to date numbers? Let’s see how this year, through October 31, 2009, compares with the last few years, back to 2005.  These stats are, of course, from The Greater Cincinnati Multiple Listing Service. January 1 – October 31, single family closed sales, no auctions. The stats include the Hamilton, Clermont, Butler and Warren Counties.

                                                             January 1 – October 31 

See any trends here?  So far this year, closed single family dwelling sales are 394 units down from last year, but a whopping 5,476 from the 2005 high.  The list to sale ratio continued dropped with a “thud”, as buyers drove hard bargains. Combine the buyer’s “upper hand” approach to negotiations with sellers who are still over-pricing, and the L/S ratio widen.   The back story on these numbers you don’t see, are the number of homes that had to have 2 or 3 price reductions before a buyer wrote an offer that resulted in a closed sale.

If you want more detailed information about your specific neighborhood or price range, let me know! The RealCincy Group would be glad to prepare your personal report.

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

When gold coins were plentiful, the princess was loved by the people. After the darkness appeared, some would even want to literally argue, challenging her to a duel, about why their castle was special, and how it had escaped the plague on the land. “But I’m next to a park” shouted one! “But I’ve just drained the swamp!” yelled the other. “Could you not see that I’ve painted the Great Hall blue, the master suite purple, and shined all the suits of armor?!” raged the next.

After the darkness appeared over the faraway land, some people decided to not sell, but perhaps re-finance their castle. Maybe take cash equity out of the castle, and dig a bigger moat or pay down some credit cards. Perhaps finance a trip to another far away land: Acapulco or the Grand Cayman Islands for instance.

If we are going to re-finance, we’re going to need an appraiser. If we have an appraiser, we have an opinion of value. The key word here is “opinion”.  I’m not here to suggest that we send the appraisers to the stockade.  Not even close. I successfully work closely with an appraisal group to assist me with our Serious Seller Program. Now, that being said, let the story telling continue.

A couple of weeks ago, someone I know gave me a copy of an appraisal, now about 6 months old.  If you can remember back with me, to January 2009, the Greater Cincinnati real estate market wasn’t exactly stellar, and the MLS stats that I posted outlining 2008 final numbers spoke to that point. As the market has continued to remain low these last 6 months, it’s possible that the future reporting will show that it was better then, than it is today!

I would love to be able to share the entire contents of this book of fiction, um, professional appraisal, but ya’ know that’s not going to happen. I will however, continue with the “fairy tale” aspect of this story, by sharing a couple of key thoughts. This was a well intentioned appraisal, I’m sure. However, the mistakes made, and the storybook effect of this tale of fiction disguised as an expert appraisal, has yet another homeowner thinking her castle may be worth a few thousand more than it is.

The point of the appraisal was, as you’ve probably gathered, for a re-finance.  The home is served by a school district with an “Excellent” rating, per the Ohio Department of Education. That school district had 207 sales in July 2008 – January 2009. In the same time period, one year prior, July 2007 – January 2008, there had been 236 sales.  I know you did the math: 29 fewer sales
Now, check out this information:
2006 – 504 Sales. Median List Price: $215,000 Median Sales Price: $209,250
2007 – 419 Sales. Median List Price: $205,000 Median Sales Price: $195,000
2008 – 387 Sales. Median List Price: $189,900 Median Sales Price: $184,500

Here’s how the fairy tale continues: this appraisal was performed the first week of January 2009, thus the appraiser would have concentrated on the 6 months prior to the report.  The appraiser would have access to the above information; however, this is not the type of sales history an individual appraiser will take the time to create or consider for one homeowner. The appraiser commented that this area had “…stable to modestly increasing property values.” I don’t know about that. What do you think?  $184,500 SOUNDS like quite a bit less to me than $195,000. A $10k drop in median value for one of Greater Cincinnati’s most popular areas in one year’s time! That’s information I might like to have if I’m selling a home, or re-financing and looking for true market value, (not pumped up re-fi value)  now that the dark cloud of slow sales has moved over the land.

Let’s consider something else in the appraisal that will cause even the sturdiest gargoyle to rock off its base. Under the “Additional Listings” section of the report, the appraiser voluntarily and arbitrarily decided to discuss a home that was being offered “for sale”, in “active” status in MLS, far above the most probable sales price, or market value, of the subject property. This home was entered into the report as an “oh, by the way” commentary. Just what did the appraiser say? Glad you asked. She noted that while “…this is not to be considered a comparable, due to the fact that it does not meet the requirements of a comparable, which is a closed sale. This listing exhibits the strength of the market in the area”.  In my book, 32 fewer sales than the year before, with a $10,000 drop in median price doesn’t sound too strong…but what do I know?   That “non-comp”  home was on the market, the day of the appraisal, January 6, 2009 at $183,500. It had first entered the market priced at $187,500. Currently, the home is still being marketed, 301 days later, and reduced to $177,500.

In some wierd way, I guess you can say the this home “…exhibits the strength of the market…” I just don’t think that was the twist the appraiser was going for.

In the meantime, there is a homeowner who has been given some “false hope” about the reality of the real estate market. Unfortunately, she has put her faith in this appraisal that is riddled with inaccuracies. I think I know a princess whose frock is about to get dirty.

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

You Must Sell What You Have. Don’t Try to Sell Your Vision

When meeting with homeowners getting ready to put their home on the market, it goes without saying that we are going to discuss the condition of the home as it relates to salability and market value. Unfortunately, too many homeowners are still putting homes on the market before they are “market ready”.  Other homeowners have simply run out of time or money, and are unable to build the deck or re-finish the hardwood.  Understood. Sometimes cash is tight. But what else needs to be understood is this: Unfinished projects will affect the marketability and the bottom line sales price of your home.

I was recently in a home where the homeowners had a door from the breakfast nook to, well, nowhere! That first step outside is a potential leg breaker! This 5 year old home never had a deck attached as was intended when the home was built, yet there was no apparent pricing adjustment to the list price. Then there is the story of the owners of a 1 year old Fischer Homes resale in the Polo Fields who had accepted a corporate transfer.  I will never forget listening to the homeowner justify the price he wanted, based on the fact that his unfinished basement with 10’ ceilings and 3 nice sized windows let in quite a bit of daylight. Now, the home wasn’t built with a walkout basement.  He reasoned with a few adjustments, like cutting through concrete, it could have a walk-up stairwell basement, be properly finished, and add about another 2500 sq. foot of living space….What?!  Are you serious?? By the way, the home did not sell anywhere near this guy’s price.
 “No kidding?” you say.

I am currently representing a buyer purchasing a home in West Chester. The out of town owner purchased the foreclosed home as a “fix and flip”.  The problem is, he put it on the market before completing in full the re-hab project.  What my buyers saw was unfinished hardwood, a master bedroom in need of carpet, no appliances, and a yard full of weeds needing attention. Costing his checkbook a great deal of cash, the seller priced the home not as you see it, but as though it were complete. It is not.  My buyers are getting one great purchase, and the seller is completing the unfinished projects, including re-finishing the hardwood floors. Why? Because he needs to sell!  Putting this home on the market before it was ready probably cost him $20,000 – $25,000. Great for my buyers! I’m just glad I don’t represent this seller!

I walked away from an opportunity to list a 4 –unit apartment complex, deeply in need of updates. Why would I potentially “leave money on the table”? Because the seller of the apartment was, and still is, trying to compete in price with newer, more up to date 8 – 12 unit apartments that from an investment position, make sense vs. his very run down “could be” building.

One truth seems to ring true whenever I find myself sitting at the kitchen table with a potential seller, who is sharing his or her vision about what they were “going to do” with their home or investment.  These people had a vision for the home, and life’s circumstances prevented them from being able to complete that vision. Often, I can see it pains that person, or couple, to sell. They love their home, or this investment is supposed to take care of their retirement. We understand.  But as I’ve mentioned before, you need someone who will be objective. You need someone who will tell you the truth. That’s where we come in.

Trust me, it gives me no pleasure to tell someone they need to downwardly adjust their expectations of their home’s value when major, buyer favored items, are missing.  Decks that didn’t get built, appliances that didn’t get installed, fences that didn’t get repaired, gardens that didn’t get planted, and a fresh coat of paint that didn’t get applied. It all adds up.  Potential buyers just have too many options to get wrapped up in your vision. Buyers have their own lives to think about, including their own vision, and it will not help your sale to assume they will share yours.

Your best bet is to put your home in as clean, staged, inspected and corrected condition as your circumstances will allow.  Edit the personal items. Take down the magnets and baby pictures off the ‘fridge. Clean….deep clean. Have the home fresh and in showing shape each and every day. 

Take advantage of our Serious Sellers Marketing Program to make sure you are staged, inspected, and priced accordingly. It’s only $650! If you spent $650 and it brought you several thousand more, doesn’t that make sense? Follow through with this program and your home will sell!

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

Currently, there are 3 loan categories. Loans under $417,000 are considered conforming. Loans $417,000 – $729,500 are in the conforming jumbo category. Loans over $729,500 are considered super jumbo.  Jumbo loans remain quite costly compared to the interest rates for conforming loans.  Jumbo buyers with outstanding credit and plenty of available cash for a down payment are being viewed as higher risk borrowers than those seeking a loan with lower credit scores and minimal down payment funds.

Nationally, sales above $750k are down. A month’s supply of luxury home inventory, a.k.a, the absorption rate, continues to rise. This trend is occurring both nationwide, and in the Greater Cincinnati area. Check out these numbers, by year, sales over $700,000. All stats, of course, from The Greater Cincinnati Multiple Listing Service:
               2000 – 118          2005 – 334  ** Peak of the housing bubble**
               2001 – 141          2006 – 327
               2002 – 200          2007 – 288
               2003 – 211          2008 – 209
               2004 – 283          2009 – Nearly ½ way through the year, “drum roll please”!    29 !!

Overall, precious few of us will ever need to obtain a jumbo or super jumbo mortgage, so you might wonder if this affects us. The answer is, of course, absolutely.  As these jumbo mortgages become increasingly difficult to obtain, many luxury buyers are forced to liquidate their assets to make the home purchase. The rest of us call that “paying cash”. Even though paying cash for a $1,000,000 plus home may be “do-able”, many are reluctant to do so when they should be able to find long term, low interest debt like the rest of us, and keep the cash right where they have it now. Presumably, making more cash.  The reluctance is obvious, as the shear volume of luxury sales has plummeted.

Jumbo Loans are Difficult to Obtain

This current scenario is doing its part to slow our economic growth, and certainly is inhibiting the “chained cougar” known as the Housing Market. The Housing Market is ready, willing, but not quite able to lead us out of our current economic situation. Unleash the “chained cougar”, and history tells us the Housing Market will start running toward recovery, and most of the rest of the economic sectors follow.  The ability to not just purchase, but to re-finance the high rate jumbos into lower rate loans would certainly help to give a kick in the seat of the pants of this sluggish economy.  If these jumbo borrowers were able to reasonably re-fi and save an estimated $6000 – $15,000 yearly on interest payments, well, wouldn’t they?  Money then free to be spent on vacations, education, clothing, and re-investment, potentially jump-starting and feeding other areas of the market.

The National Association of Realtors is doing there part to stir the pot on this issue.  The NAR has proposed that Congress and the White House take a close look at making permanent some rules that have been temporarily put in place recently to loosen the jumbo market. We’ll see how it goes. In the meantime, it’s back to window peeking.

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

Are you ready to Get Serious and get your home SOLD in 2009?   

Great! ….Here’s How!

Gone are the days of “let’s just see” and “we’ll test the market”.  Today’s sellers must be serious about selling…..or the market will make that decision for you!  Today’s seller must take a pro-active approach to marketing to protect their equity.  Today’s seller needs to encourage what precious few buyers are available to choose their home, by eliminating as many obstacles as possible! 

Maybe your home failed to sell previously and you are ready to try something new. You waited for showings that were never scheduled, or had showings but no offers.  Perhaps you are ready to sell, but don’t want to experience the “never-ending time on the market” that your neighbors did. The stress of never knowing how much longer that “For Sale” sign would be in their yards. Then let’s Get Serious!

The $650 “Serious Sellers” Satisfaction Package

* Here’s What’s Included *

• Home Warranty – Coverage is Provided to YOU While the Listing Agreement is in Effect. Transferable to Buyer at Closing.
• Pre-Listing Home Inspection – INCLUDING Termite & Wood-Boring Insect Inspection!! This WILL Save You Time & Money!!
• Professional Photographs – Experience the Difference!
• Staging Consultation with Home Staging and Decorating Professional – Your Home is Lovely, But Today’s Buyers Demand More than “Clean & Tidy”.  The Way You Market & Stage a Home is Much Different from the Way You LIVE in Your Home.

Learn From a Professional & Reduce Your Marketing Time!

Also Included………

• Pre-Marketing Appraisal – Your Agent Has Provided You with a Statistical Right Price Analysis.  The Appraiser Will Provide True Market Value, or TMV.  Price at or Near TMV. You WILL Reduce Your Marketing Time & Saves it WILL Save You Money!
• Online Promotion – Your Home Has its Own Web Page!  Showings Happen Around the Clock, Every Day of the Week. Online Promotion in the MLS, Local Broker Websites, RE/MAX.com, Craigslist …..and 10 Other Sites Used by Home Buyers Across the Globe!
• VoicePad…a 24/7 Information Line!  and In-Home Brochures
• “Front and Center Promotion” to our Google Based Online Home Buyers – Literally Thousands of Online Shoppers Reach Our Site Monthly. Your Home is Featured in our “Market Monitor”.  We Are Keeping Home Buyers Up to Date AND Promoting Your Home When it’s a “Match” to Their Search Criteria!
• Vacant Home Cleaning – An Added Value to Your Potential Buyer & A Time Saving, Stress Reducing, Money in Your Pocket Bonus!

Give The Real Cincy Group a call! We will prepare your Right Price Analysis and get serious about selling!

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

Columbia – Tusculum can boast having some of the most amazing Victorians in Cincinnati, 2 and 3 stories high, with Palladian windows, stained glass, leaded glass, stone steps, and wrought iron fences.  While being home to some of the area’s most gorgeous, 100+ year old renovated Victorians, there are still some “diamonds in the rough”.  If you are up to a renovation project, this might be a good place to explore.

Other housing styles are available in the area.  There are contemporary styles with breathtaking river views, and upscale, luxury condos with high end finishes. The best in urban chic!  Many enjoy a 10 year tax abatement.  There is some new construction, or newer built homes:  upscale, with all the fine appointments you would expect.

Columbia-Tusculum is just 10 minutes to Hyde Park Plaza, and  15 minutes to Rookwood Commons.  Residents enjoy Alms Park, for the kids play area, walking trails, for communing with nature, all overlooking the Ohio River. Close by is Lunken Airport, first established as a barnstorming airport just after WW1, now serves as a landing for private planes. Neighboring Lunken Fields is available for tennis, golf, baseball, roller blading and jogging.  Columbia Square is rapidly under construction, with new opportunities for office space, retail and restaurants.  Recently, Anytime Fitness and Bruegger’s Bagels entered the square.

Catch up with all the happenings at the official Columbia-Tusculum web site.

Ready for a night out?  Meet up with your friends at any of these great places:

Allyn’s Café – Since 1991! This is “the place” in Columbia-Tusculum. Awards include Best Beer, Best Café, Best Mexican, Best Booth at the Taste of Cincinnati, Best Gator….yes, as in alligator.

Bella Luna- Authentic Italian from the Sicily & Calabria regions. Excellent!

The Precinct – One of my personal favorites. Special occasion food, and special occasion prices. Special, unless you are one of the local sports stars, power players, and celebrities in the room (we saw Jane Seymour last year). When only the best selection and quality seafood or steaks will do.

Stanley’s Pub – Sorry, no link. Just good live music, a bit of a dive, and a very good time. Outdoor patio for warm weather enjoyment , and a pool table. Have fun!

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

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