Tag Archives: First time home buyers

New Construction

new constructionShould new construction be inspected? This question comes up a lot. Many clients call for an inspection after the property is finished and we do what his called a walk thought inspection. In my most current case it would have been wise to have phase inspections completed. In this case there has been a change of contractor. I was called in to inspect only the electrical to look for code violations. The new electrical contractor did not want to take over the work from the old contractor – he wanted to rip it out and start over. And I can’t really say that I blame him. Most of the work was done in an un-workman- like manner – it was very sloppy, and there definitely a few code     violations.

new constrution

The first and biggest violation was the placement of the interior panel box. The picture at the right shows where he ran the wires. They were at the back-end of the slab. That slab was installed for the washer and dryer, which will not longer fit on the slab due to the placement of the box. Even if the box would fit there, it is a violation of work space and access per the National Electric Code. The code calls for 36 inches of unobstructed work space in front of all panel boxes. In order to work blueprintson the box in the future, the electrician would have to climb on the dryer to have direct access. As you can see from the blueprints, the box was supposed to be placed about 30 inches in front of the slab, which was actually opposite the meter on the exterior wall.

 

 

new constructionThe next code issue was the service lateral. The original electrical contractor had installed Schedule 40 PVC pipe. This pipe is not allowed in this location. Both the NEC and  FPL call for either galvanized pipe or Schedule 80 PVC pipe to be installed. Schedule 40 pipe should never be used in a location that could be subject to physical damage. Schedule 80 and galvanized pipe are much stronger and can withstand more punishment without damaging the pipe.

Posted by Bill Siegel Florida Home Inspection Team Inc

Coastal Flooding

Coastal Flooding

Coastal flooding

Coastal Flooding is becoming a big and bigger issue around the world. The following is a good article on the subject.

http://www.iamagazine.com/strategies/read/2016/05/11/beyond-fema-flood-maps-what-to-tell-your-coastal-customers

The next big question is whose responsibility is it going to be to inform a potential buyer that the home they are about to purchase lies in one of these areas. While it may be common knowledge to people who live in the area, an out-of-town purchaser may not know or even think to ask about this. In Florida, many homeowners are finding that, due to coastal flooding, when they go to make renovations to their home, depending on the cost of that renovation, that they may have to raise the elevation of their home. That usually costs more than the renovation itself.

Coastal Flooding is an issue that should not be taken lightly by anyone in the industry, from real estate agents, mortgage lenders, title companies, appraisers, to home inspectors.

Posted by Bill Siegel Florida Home Inspection Team Inc.

Consumer Alert! Do It Yourself Claims Handling – InsuranceNewsNet

Source: Consumer Alert! Do It Yourself Claims Handling – InsuranceNewsNet

Lets talk about flippers

Flipping houses has been big business, especially in the South Florida over the past few years. As a home inspector they usually present the most challenges in the inspection industry. Most flippers are in business for one reason and one reason only – to make money. I laugh every time I see the show Flip or Flop. I have yet to see them lose money on a house, and of course they always get more than the appraised value. That is usually not the way it works. I have run into multiple people who have taken those courses and have gotten burned.

Most flippers that I run into only do cosmetic upgrades. They install new flooring, paint the interior and exterior, update the kitchens and bathrooms, and maybe do some landscaping. What they overlook is the roof, electrical system, plumbing system, and air conditioning system. The usual cost of these updates is between $20,000 and $30,000. I think they hope no one will find the other deficiencies. A new roof us usually a minimum of $5000.00, an AC system $4000.00, and electrical system can cost anywhere from $2000 to $15,000 depending no the work that needs to be done.

The other thing they forget to do is pull permits for the work that requires them to be pulled. I cannot tell you how many tankless water heaters get installed without a permits. These installations require both an electrical and a plumbing permit. Imaging the look on their face when I tell them that the electrical system needed to be upgraded from that 100 amp system to accommodate the now double electrical amps of a conventional tank water heater.

The last house I was at had all new windows installed. No permits. In Florida, all windows have t be either impact rated or have shutters installed. With no permits we have no way to verify if the correct windows were installed. They left out half of the framing screws. Pulling a permit will guarantee that something is installed correctly, but at least is is a check on the work. And why do a lot of these flippers no pull permits. A lot of them are not licensed contractors, which another whole thread topic. On this particular home the seller admitted that he did not pull permits because it would have been too costly to do the work correctly. Now he is facing fines front the city and currently has a house he cannot sell.

As realtors, I would like to get your feedback about listing one of these houses. Do you check for permits, or look to see what they might have overlooked. I know no one wants to do this, but it might be a good idea to have the house inspected prior to listing it to know the issues that might arise when a buyer comes through with their inspector. It could save a lot of time and heartache for all parties involved.

Posted by Bill Siegel Florida Home Inspection Team Inc.

The history of residential wiring

residential wiringDid you know that the history of residential wiring dates back to 1879 when Thomas Edison lit up a few homes in New York. 1892 he was awarded a patent for the electrical conductor. Armored cable was first used in 1899 and BX has been around since 1903 but not widely used until the 1930’s. NM cable first came onto the market in 1926. 1962 was the beginning of having  equipment grounding for all branch circuits popularized the use of NM cable with ground. This us just a small snippet of what is contained in the article. Click here for the entire article:  History_of_Residential_Wiring_practices_in_the_USA

What makes a good inspector and a good inspection report

I recently saw this on an inspection report by someone north of Palm Beach County:

Inspection reportRoof has 2 layers on it. This is not a recommended method of roofing for Florida and may present issues with obtaining insurance or financing. • Sagging / buckling on roof decking. • Damaged and rotted sheathing noted. • Recommend roofing contractor to evaluate. In the attic: Evidence of past or present leaks observed in several areas. Tested dry at time of the inspection. Monitor for leaks &/or have roofing contractor evaluate.

If you were buying this home, what would you think of this statement. I would be irritated if this was in a report on a home that I was buying. These statements mean absolutely nothing to someone not versed in construction or the building codes. If this inspector had any knowledge of the codes he would have known that yes, you can do a roof over, but only if certain conditions are met. One of those conditions is the roof decking has to be in good shape, of which this deck was not – that is why they did the roof over – to stop the roof from leaking.

This inspector is obviously either deficient in his education or very realtor friendly and does not want to write anything that would hold up the sale or cause the sale to not go though. It should have been clear to him that the roof needs to be replaced, as it was done wrong in the first place. Recommending that a roofing contractor evaluate the roof does two things. Is shows lack of knowledge on the part of the inspector, and now it will cost the buyer to spend more money to have the roof inspected, which is what he paid the inspector for. With the time constraints put on real estate sales today, there might not be time to get an opinion from a roofing contractor.

But don’t worry about the client, because this inspector is part of an association that will buy the house back for the purchase price, but that would depend on the interpretation on whether or not the association felt that the report had enough information in it that the buyer should have known, or had paid for a roofing contractor to come out and inspect the roof. And that brings me to another whole story. Do you think any buyer really wants to buy a home, pay all of the expenses on the home, ie closing costs, escrow to close, title insurance, and then only be paid back the purchase price, plus having to move again, which is costly.

It is important when you are buying a home to hire an experienced inspector. Do not take any recommendations without doing some homework. Part of that homework should be to review some sample reports from prospective inspectors. The ones that recommend further evaluation on most items are the inspectors you want to toss to the side. That roof should have been written up as a replacement. Based on the size of that home and the fact that there would be an extra charge to tear off the extra layer, a new roof would cost between $10,000.00 and $12,000.00. As a client, wouldn’t you want to know that so you could either negotiate for an new roof, or credit, or, if need be, walk away from the deal if the numbers did not meet your satisfaction.

Posted by Bill Siegel Florida Home Inspection Team Inc

 

How do you Choose a Home Inspector?

To choose a Home Inspector can be a difficult decision. You have made the decision to by a house. Now you have the task of wading through realtors, title companies, mortgage companies, appraisal, and inspections (and I am sure other things). The realtor, the title company, and the mortgage company all get paid at closing. The appraiser may also get paid at closing. Inspections are paid by the borrower at the time of the inspection. So, your home inspector must be chosen carefully, as they are the ones that will give you the real details on your new home.

Referrals:

Most buyers will let the realtor choose the inspector for them, either knowingly for unknowing. A list of three home inspectors is usually given to the borrower by the real estate agent. Now, if you like your agent, you are going to believe them. But do they really have your best interest at heart, or are they giving you three inspectors that write ‘soft’ reports to help the sale go though. I do know that there are plenty of good realtors out there that do have their buyers best interest at heart, but there are also many that do not.

Asking a friend that has bought a home is a good source for a referral. They have already used an inspector and they will tell you how they did. Ask them how long the inspection took to complete, when did the report arrive, did they explain the major issues, while also listing all of the minor issues, and did they have an understanding of when the roof, AC, and water heater may need to be replaced. Also ask if any problems occurred after the inspection.

Web searches:

The last place you can look in on the internet. Most inspectors have beautiful looking web sites. However, most of these sites all say pretty much the same thing. Here is what to look at when doing an online search:

1} How long does is say the person has been inspecting homes. Most will list 20-30 years in the industry, but not be very specific as to their area of expertise or how long they have been actually been conducting home inspections. If Florida you can get an idea by their license number. Anyone with a high number over 6000 has only been in business a short time. Licensing came about in 2011 and at that time there were about 4000 that obtained their license.

2) How many inspection does it say they have completed. I look at a lot of web sites and normally is see anywhere from 5000 to 15,000 inspections completed. Does that make sense for the years in business? And are those inspections full home inspections, or just insurance inspections. There is a big difference.

3) Look to see what certifications they have. All that is needed in Florida is a license to operate. Be wary of association certifications. Many of them are very easy to get – most only require an online course (one or two hours) and a test at the end. Also see how many hours of continuing education the inspector does every cycle. Florida only requires 14 hours per cycle, or 7 hours per year, which is not very much, especially with the codes changing every few years. Do they go above an beyond or do they only do the minimum?

You should always interview your inspector before hiring them. You want to get the best value for your money, and that does not always equate into the cheapest price. Remember that the bitterness of poor quality remains long after the sweetness of low price is forgotten.

Ask if they know or cite building code references in their reports. Most will say they do not, that they are not code inspectors. Citing code has nothing to do with being a code inspector. It has to do with knowledge of how things are built. They can be used as clarification as to why something was installed improperly. The most important thing an inspector can do is back up what he is calling out with a reference. This will save all parties involved time and energy trying to figure out why something was written.

Sample reports:

You should always ask for a sample report. Most reports are computer generated using industry software. They should be easy to read and understand. It is not only our job to tell you something is deficient, but why it is deficient. We should be calling for repair or replacement and in South Florida, most inspectors will give a cost estimate. If the report calls for ‘further evaluation’ by a licensed professional on every item, why bother hiring a home inspector in the first place. Why not just hire the roof, AC company, plumber, and structural engineer the first time around.

Be wary of inspectors that offer warranties for everything they inspect. Most of these warranties are sort term only and don’t cover what you would hope they would cover, and many come with deductibles. Ask yourself this – if the inspector is good, why should I need all of these short-term warranties. In my opinion all they do is give the inspector a reason not to do a good job. They can rush from one job to the other. Also, do you want to have to deal with a warranty company. If the inspection was done right the first time you may have been able to get the seller to fix or replace those items.

The last thing I can tell you, and it has been mentioned above, is do not choose your home inspector by price. The experienced inspector will cost more, and that is because he has more knowledge. In the end, a good report will list multiple items, Some will need repair, some will need replacement, and some are maintenance items. If you read and understand the report you will most likely be able to re-negotiate for a better price. Many clients have been able to negotiate hundreds or thousands of dollars based on good inspections and well written report. One of my recent clients was able to save $39,000 off the purchase price, and that was after the seller brought in their own contractors to verify what was in the report.

Posted by Bill Siege Florida Home Inspection Team Inc.