REAL ESTATE INSPECTION BLOG

Properly Maintained Homes Save Money

LaRocca Inspections — Thu, 24 Apr 2008 15:56:25 +0000

Home sellers would rather not have problems with their home appear before their house is sold and homebuyers do not want to be stuck with problems that are discovered after they have already handed over their hard earned money and moved in.

Simply put, the seller does not want to get a surprise issue they were unaware of come to light during the transaction that will stop the sale, and the buyer wants to make sure that there are no unforeseen costly repairs looming.

Home inspections provide everyone involved in a transaction with knowledge about the condition of a property’s major systems. Ideally the information they receive from the inspector should help the buyer make a more informed decision as to how they will proceed with the purchase.

“Homebuyers don’t want to be surprised with leaking windows, doors or roofs the first time it rains” says Bud Hayes, president of the Los Angeles-East Valley Chapter of the California Real Estate Inspection Association. He adds, “Home inspectors check for these things. They also check furnaces, air-conditioning, plumbing, electrical, foundations, attics, roofs, and other hard-to-reach spaces.”

Maintaining a property can help property owners save money by having systems that operate better, last longer, and reduce the issues a property inspector will discover when the property is offered for sale. The homeowner should make sure to do the following maintenance items on a regular basis:

Keep exterior surfaces protected with paint, caulking and sealers. The exterior surfaces bare the brunt of the sun, rain and wind and if properly maintained will keep water from seeping into the house through windows, doors and decks.

Roof gutter systems, yard drainage around the house and the underground storm drain systems should be kept clear of debris so water will flow away from the house.

Maintain seals around sink fixtures and counter penetrations that could allow water to seep through causing damage to the countertop or the underlying cabinetry.

Replace dirty and clogged filters for heating systems, cooling systems or range hoods. Proper airflow allows these systems to operate more efficiently and reduce the potential for damage or fire.

A property owner who is unsure about the condition of the various components of their property could hire a professional real estate inspector to give a full assessment of each major system. The information could then be used to make the needed repairs so that the home could be better maintained.

During a sale, that inspection information and any documentation of repairs made could be used to fully disclose the condition of a property to any potential buyers. In a sales transaction a buyer must get his or her own inspection. The buyer’s inspector is bound to find issues, which the buyer will most likely use to negotiate a price adjustment. A savvy seller will fully disclose any issues as well as document all repairs for any potential buyer. That seller can then tell the potential purchaser to make their offer based on that data because unless their inspector finds something significantly different than what was already disclosed; there will be no renegotiations in escrow.

So you see, properly maintaining a property and properly disclosing issues and repairs can save property owners money.

By John LaRocca , Certified California Real Estate Inspector and a licensed general contractor. Contact him at 818/951-1795 or www.LaRoccaInspect.com

Special Issues with Purchasing Foreclosures

LaRocca Inspections — Wed, 09 Apr 2008 09:37:53 +0000

As we all know there are many foreclosures on the real estate market at this time. While these can seem like a good bargain, it’s critical that the transaction be properly handled during the inspection process.

Home inspectors are finding many problems that are unique to the purchase of foreclosed or abandoned properties. The following is a good list of these specific issues.

1. Bank foreclosures, REO’s (Real Estate Owned by banks), etc., have no obligation to disclose any issues and work to deny any liability for any issues found wrong with the property after the purchase.

2. Owners who run out of money may remain in the house for many months or years without doing any maintenance or repairs to the property thereby allowing the property to deteriorate.

3. Sabotage and vandalism are often found. There are garbage disposal systems and sewer pipes deliberately clogged with concrete, gravel and other debris and there is often damage to the property by banging holes in walls, breaking windows, doors, etc.

4. Removal of components such as appliances, toilets, light fixtures, cabinets, fancy tiles, water heaters, air conditioning systems and pool equipment have occurred. The copper water pipes and copper electric wiring have been removed and sold for scrap.

5. Sometimes pools are drained to cut down on the banks monthly expenses, which can create other issues such as plaster and tile cracks in the concrete walls of the pool. Pools can also shift and lift out of the ground when the weight of the water is removed. Sometimes pools are partially full of water but are not maintained, allowing the water to turn into a green algae mess and a breading ground for mosquitoes.

Houses that are left vacant with services turned off create other special issues as well.

1. Sink, tub and shower faucets can become clogged with rust flakes and debris restricting the flow of water. Also, valve washers dry out and crack so they often leak when turned on after sitting for extended periods of time.

2. The hair, debris, toilet tissue and roots that normally are softened by a daily flow of water through the drainpipes can harden into solid masses creating clogs that can cause drains to back-up and overflow.

3. Vacant houses often have the water, gas and electric services discontinued. Buyers and agents need to verify that all of the services are turned on and all of the systems are ready to be tested prior to the property inspection. Unless all of the services are on and the systems you want inspected are ready to be tested, the property inspection may need to be rescheduled so it can be performed when the property is fully ready. If an inspector has to be rescheduled additional charges may be incurred.

4. Vacant houses that are left sealed up for a while often have mold issues due to constricted air flow.

This is not necessarily a complete list. It’s possible to have various issues that are specific to an individual property.

Banks are often not very cooperative through this process so a buyer’s best protection from incurring additional costs during the escrow period and unforeseen unpleasant surprises after the close of escrow is to do their due diligence. Professional home inspections, sewer line inspections, chimney inspections, and mold inspections should be standard with foreclosure purchases. Reviewing city building permits, tax records, talking to neighbors, and any other area of concern should be part of the buyer’s due diligence.

There is a new definition of the “Wild West” and it comes in the form of staking your claim to a piece of real estate. Being diligent can help make buying a home the “American Dream” and not your personal “American Nightmare.”

By John LaRocca, Certified Real Estate Inspector and Licensed General Contractor. 818/951-1795 or John.Larocca@LaRoccaInspections,com.

NEGLECTED CHIMNEYS CREATE POTENTIAL TIME BOMBS

LaRocca Inspections — Tue, 01 Apr 2008 15:06:37 +0000

According to the U. S. Fire Administration (USFA) 36% of residential home fires are due to creosote buildup (a tar-like substance that sticks to the walls of a chimney when wood is burned) in chimneys and stovepipes. That adds up to 26,000 fires, 137,000 million dollars in property damage and 60 human deaths annually.

The USFA and Federal Emergency Management Agency and the US Consumer Product Safety Commission encourages you to practice the following fire safety steps to keep those home fires burning safely:

* Have your chimney or wood burning stove inspected and cleaned annually by a by a certified chimney specialist.

* Clear the area around the hearth of debris, decorations and flammable materials.

* Always use a metal mesh screen with fireplaces. Leave glass doors open while burning a fire.

* Never restrict air supply to fireplaces. Otherwise you may cause creosote buildup that could lead to a chimney fire.

Safely Burn Fuels

* Never use flammable liquids to start a fire.

* Use only seasoned hardwood. Soft, moist wood accelerates creosote buildup.

* Build small fires that burn completely and produce less smoke.

* Never burn cardboard boxes, trash or debris in your fireplace or wood stove.

* When building a fire, place logs at the rear of the fireplace on an adequate supporting grate.

* Never leave a fire in the fireplace unattended. Extinguish the fire before going to bed or leaving the house.

* Soak hot ashes in water and place them in a metal container outside your home.

Protect the Outside of Your Home

* Stack firewood outdoors at least 30 feet away from your home.

* Keep the roof clear of leaves, pine needles and other debris.

* Cover the chimney with a mesh screen spark arrester.

* Remove branches hanging above the chimney, flues or vents.

Protect the Inside of Your Home

* Install smoke alarms on every level of your home. Test them monthly and change the batteries at least once a year.

* Consider installing the new long life smoke alarms.

John LeBaron, the President of Chimney Check Professionals and a highly qualified chimney inspector says, "Homeowners in the San Fernando Valley are especially vulnerable to the potential for chimney fires because thousands of chimneys were left damaged by the 1994 Northridge Earthquake. LeBaron adds, “Another hidden problem was caused by unscrupulous contractors that swooped in to take advantage of the free flow of money being provided to unsuspecting homeowners and the failed to make proper repairs to many damaged chimneys. Consequently those homeowners just do not realize the potential fire hazard created every time they light their fireplace”

Ultimately, to keep your family becoming another tragic fire statistic, a certified chimney specialist with the aid of a video camera should determine the structural integrity and fire safety of your chimney structure. This includes metal prefabricated chimneys as well as masonry types.

By John LaRocca, a Certified California Real Estate Inspector and a licensed general contractor. Contact him at 818/951-1795 or wwwLaRoccaInspect.com

The Truth About Building Permits – By John A LaRocca

LaRocca Inspections — Mon, 24 Mar 2008 16:12:13 +0000

When buying a home that has had alterations or additions to the building, a Residential Building Permit should have been obtained if that work was over a few hundred dollars or if it involved changes or additions to the electrical, plumbing, mechanical or structural elements of the building.

That document will describe the proposed work, the date of the application and other basic administrative information.

For example, a kitchen remodel always is more than a few hundred-dollar project and involves changes to the electrical and plumbing systems, so permits would be required.

Being shown a copy of the permit does not verify that any work had been completed or inspected, unless the permit is signed at the place designated for the “final sign-off” by the inspector.

Plus, the inspector is only verifying the completion of the work described on the permit, nothing else.

These documents are kept on file as public records at the city or county Department of Building and Safety. They can be obtained by anyone and are valuable documents for any homeowner

John A. LaRocca is an inspector. He is a member of the California Real Estate Inspection Association (CREIA) and a licensed general contractor. If you have any questions he can be reached at 818-951-1795 or www. laroccainspect. com

How to Hire a Home Inspector

LaRocca Inspections — Fri, 14 Mar 2008 16:22:03 +0000

It’s late Sunday afternoon and Ted drops into his living room recliner chair in an exhausted heap after spending the last six hours finalizing the deal on a house he’s purchasing. He’s looked at about 70 homes in the past 5 months and now he finally has an accepted offer on one. “Whew! Soon I’ll be in a home of my own,” he thinks to himself. Just then he remembers the folded piece of paper in his breast pocket with the names of three home inspectors his real estate agent gave him. As part of the purchase agreement he must have all the inspections of the property completed within the next ten days.

It’s Sunday so he won’t try calling inspectors until the morning. He decides to go on the Internet to see what he can learn. He searches for data about home inspectors and finds creia.org, the site for the California Real Estate Inspection Association.

It came as quite a shock to Ted when he read that California requires no licensing nor does it regulate home inspectors in any way. The state does not require any sort of registering, background checks, testing, financial bonding or insurance of any kind for home inspectors.

Ted considers this a huge risk given the fact that he now has to hire an unlicensed, unregulated person to advise him on what may be the largest single investment of his life.

He wonders how he will find a true professional to correctly evaluate and advise him on such an important decision.

Luckily, he has a few recommendations from his realtor to start with and frankly there are many professional, ethical and insured real estate inspectors in the industry to choose from, but how does he decide on the right one for him?

Here’s a list of questions to ask your candidates:

•Are you a member of CREIA or another credible real estate inspection association?

•What is your professional background? (General contractor, engineer, etc.)

•What is your construction experience? (Homebuilder, handyman, roofer, etc.)

•Do you have Errors and Omissions insurance in case of a serious miss?

•Is your report a pre-printed checklist or a narrative-style, computer-generated report with evaluations of issues?

•Is your written report delivered on site or is it delivered at a later time?

•How long do you usually spend on an inspection such as the one I’m asking about?

•If accessible do you crawl in the attic and under the building and get onto the roof?

•Will you explain the issues to me either during or at the end of the inspection?

•Will you answer questions after the day of the inspection should they arise?

Do what you can to get as many of these questions answered as possible. During the process you should be able to get some sense of what level of professional you are dealing with and how easy it will be to get your questions answered at the inspection.

The inspection of a property is a vital step in purchasing any building so it’s best if the buyer is present during the process. Ask questions until you feel you have a good understanding of what you are buying. Don’t be surprised if further investigations and evaluations by specialty professionals are needed. Sometimes issues are found with the chimney, plumbing pipes or mold, for example. This may sound like more work than you expected, but it will be well worth the effort should an expensive hidden defect be discovered. When buying any real estate, it pays to know as much as possible before you close the deal.

Hire only competent professionals to get the reliable information needed to make intelligent decisions during the escrow process. If something serious is missed, it can be difficult to get compensated for problems that are discovered after you move in. And as for Ted, the inspiration for this article, he found me and used the information in this article to hire professionals. He understood what he was purchasing before he turned over his money and now he’s very happy in his new home.

By John A. LaRocca, Certified California Real Estate Inspection Association Inspector and retired licensed general contractor. For questions or comments (818) 951-1795 or www.LaRoccaInspect.com.

Buyers, Builders, Re-Modelers Beware!

LaRocca Inspections — Thu, 28 Feb 2008 15:38:31 +0000

Getting ready to purchase your new home? Ready to re-model or add on to your existing home? Are you building that dream home on the lot with the million-dollar view? If you live in the City of Los Angeles and answered, “Yes” to any of these questions then we have a surprise for you!

The Los Angeles City Department of Public Works Bureau of Engineering has adopted policy requiring the homeowner to pay for and provide a video inspection of the main sewer line lateral when an application for a building permit is made on any structure built prior to 1965. The lateral is the portion of the property’s main sewer line that connects the property to the city sewer pipe. The city inspector will review the video to determine the condition of the sewer lateral and can require the sewer line to be rehabilitated or replaced at the property owner’s expense.

A property owner can obtain information about how this affects their specific property by contacting the City of Los Angeles Department of Public Works at 213-978-0265.

Chris Griffin, a licensed plumber for 20 years and the president of Sewerline Check Professionals (a private sewer-line inspection agency based in the Los Angeles area) illustrates, “Imagine you’ve just completed your remodel or new construction project. Most likely you have gone over budget, because that’s what most of us do to get the good stuff! The city building inspector tells you that before the certificate of occupancy will be issued a video inspection of the main sewer line lateral will be required. Then imagine the city officials telling you that the line is in need of repair or rehabilitation at a cost of many thousands of dollars. Then you’re told that this cost will be your responsibility because the City of Los Angeles places the responsibility of the sewer pipe from the structure to the city sewer connection under the street, public right of way or easement on the private property owners.”

Griffin goes on to say “I have seen this scenario all too often when the unsuspecting home owner or builder is taken by surprise at the end of their project.” Main sewer line laterals can be quite costly to rehabilitate or replace. The cost can vary depending on the depth of the sewer line though in many cases a minimum of $6,000 to $8,000 to rehabilitate the line can be expected. If the line is in such poor condition that it needs to be replaced, a typical associated cost could be $12,000 or higher.” Surprise! Was this in your budget?

Have no fear, you can determine the condition of the main sewer line prior to building or remodeling your home or while in the purchasing process by having a sewer line video examination performed. This video examination will let you know just what condition your sewer line is in and what type of pipe it is made of. The sewer line inspector will be able to give you information as to what the city may require for your particular circumstance.

Contact Chris Griffin at 818/951-7660 or chrisg@sewerlinecheck.com

FAQ’s for homebuyers

LaRocca Inspections — Tue, 19 Feb 2008 11:30:41 +0000

John LaRocca, a real estate professional in Los Angeles for 30 years submitted this list of frequently asked questions for homebuyers.

• Whether someone is getting a completely updated house or a fixer, what are the most important things to have in good shape, when buying a home?

Plumbing, Electrical, Roofing, Foundation and Heating/Cooling systems. These are the basic components and the most important parts of a house. They are also the big-ticket items if you have to repair or replace them and are a gauge of your future costs in maintaining the property. Look at the "guts" of the house. If you were buying a used car and it had a new paint job, that would be great but you would really want to find out about the engine, brakes and transmission. It’s the same with a house - find out about these 5 major systems and see if they were upgraded along with the rest of the house.

• When considering a house, what are 4 things a buyer should look at that are big red flags?

1) Moisture stains on the ceilings, walls or flooring. Moisture is the number one enemy of any structure. It not only causes damage and deterioration to the property but can lead to mold growth and other issues. It's a big red flag for potential bigger issues.

2) Unpermitted work. All construction work to the property is supposed to have permits from the city. Unpermitted work is not going to be done per building department standards and is generally of inferior grade. Many times it is done in an unpermitted fashion because it cannot meet building and safety standards and be passed by the city. If the unpermitted space is not on city records and included in the square footage, banks may not lend on it, and therefore the loan may be less.

3) Sloping floors and other indications of the house being out of square. Older homes are going to have to settlement and be somewhat out of level of out of plumb due to their age, but when it gets to the point where windows and doors are not working or have been severely altered to fit then there may be foundation issues. Foundation issues can be varied and included grading and drainage problems, they are expensive to fix. If the house is not square or level or it feels like you are walking downhill when going through a room, the foundation must be fully checked out as it can be an indicator of bigger problems.

4) Poor maintenance to the property in general as shown in things like peeling paint, worn roofing and windows that don't work. Poor maintenance usually extends beyond the things you can see. If the owners are not fixing the visible things, they are not going to fix the things you can't see.

• When a home is upgraded, what are some of the hidden problems that buyers should look for?

Any upgrade to a property should include the major systems. And if they were not fixed then the house wasn't fully upgraded. Too often the buyer is impressed by how pretty it looks and doesn't realize that if the basic components of the house are not changed; they are buying the same old house with new paint on it. Hidden problems include old rusty piping in the walls, deteriorated sewer lines, damaged chimney structures, roofing at the end of its useful life, worn out heating systems, older cloth covered wiring in the electrical system and older foundation systems that do not meet today's seismic (earthquake) standards. The buyer should have professional inspectors the true condition of each of the critical systems. Another factor with recently upgraded homes is that the systems may not have been out in use so were not tested in real life conditions. Many times when subjected to actual living conditions, problems show up that were not evident before.

• When a house is a fixer, what should a buyer beware of?

Anyone buying a fixer needs to understand the magnitude of the repairs that will be needed to bring the property to a new standard. Even experienced contractors can under estimate what it is going to take to fully upgrade a house it is common to uncover hidden problems and unforeseen costs during the course of a “fixer” upgrade. Such things as the cost to comply with new code upgrades and various job delays add to construction and carrying costs and eat into the profit margin. Sometimes a fixer can seem like such a good deal but all the costs need to be figured in and then a contingency added on at the top. If you are tight on money, this may not be the property for you.

• What are some good tips you can give a buyer?

1) Team up with a good real estate agent. They should be looking at the right house for you, not just trying to sell a house.

2) Do a full inspection of the property. Include inspections of the sewer line and the chimney. These are hidden from view and can be expensive to fix. Any money spent on inspections will save you from unforeseen expenses later on - don't skimp on them.

3) See the house you are looking at buying more than once. Go see it at night or in the morning or even on weekends. Walk around the area a little when you go there. This may help you find out if there are neighbor issues (such as loud music at night) and give you different perspectives on the property.

• What are the biggest mistakes most buyers make?

The first mistake is buying with their heart and not their head. It's easy to fall in love with the million-dollar view when they should be falling in love with their major systems.

The next mistake is not getting a full battery of inspections or hiring a discount inspector thinking they are getting a qualified professional. You want the best you can get out their telling you about the house. And you want to check out all the parts of including things like mold and other potential hazards. Saving a few hundred dollars on inspections may cost you thousands in repair costs later. Real estate is a huge investment and should be treated as such.

• When buying an older home (say anything over 20 years), what should a buyer know?

No home is perfect. There are going to be flaws and little issues. Don't let them detract from your enjoyment of the house. And realize that older homes take more maintenance and things wear out. Budget for these and maintain your house. It will make it easier for you to sell when you are ready to move.

John LaRocca / LaRocca Inspections 818/951-1795 john.larocca@laroccainspections.com

SELLING YOUR HOME? Attracting Buyers to Write an Offer in a Highly Competitive Market:

LaRocca Inspections — Tue, 12 Feb 2008 16:37:21 +0000

John LaRocca, a real estate professional for 30 years, tells us, “Most sellers offering their property for sale just want a buyer to make a full price offer and close the transaction as quickly and painlessly as possible.” However, there are many houses for sale giving buyers many listings to choose from.

Motivating a buyer to write an offer on your property when they arrive at an open house can be as simple as following some key house-showing tips.

1. Have the house well lit and open the drapes to give it the “light and bright” feel.

2. Handle pet or other unpleasant odors. Baking some cookies or bread for the showing is an inexpensive great touch, which creates a friendly and welcoming atmosphere.

3. Clean up the house, especially the kitchen, bathrooms, stained walls, ceilings and floor coverings.

4. Eliminate clutter. Remove all the excess “stuff” from the home.

5. Clean up the yard, and get rid of any junk or debris.

6. Straighten up the garage and dispose of junk and excess storage.

7. Redo weathered and peeling paint, giving the house a “well-kept” look.

8. Secure your valuables; don’t leave money, jewelry or other valuables lying about.

9. Remove the pets, especially dogs during showings. Animals under foot may be a nuisance to some potential new buyer.

10. Organize and make available any documents you have, especially building permits, contracts for repairs or additions, warranties, guarantees or manuals for new items such as appliances.

Make the buyer’s experience as pleasant as possible because you never get a second chance to create a first impression.

Now the job is to get through the escrow period and close the deal. LaRocca says, “Sellers who want to reduce the possibility of renegotiating the deal in the middle of escrow should have a professional property inspection of their own to uncover any major defects before going into escrow.”

LaRocca says, “With the information from a pre-listing inspection added to the seller’s disclosure the seller and the listing agent can relax because the buyer’s inspection is not likely to uncover any significant issues that might prompt a renegotiation of the price during escrow.”

Real estate transactions can be complicated, but following these steps can simplify the process to a successful closing.

John A. LaRocca can be reached at (818) 951-1795 or www.laroccainspect.com