Trying to Buy A “Diamond In the Rough?

The paper said “diamond in the rough.” Which means either it needs lots of work or perhaps just a little TLC. But exactly how “rough” can a house be before a lender decides the collateral is not healthy enough to issue a mortgage? And what happens if you want the seller to fix something before you’ll close the deal?

Upon contract, one of the first things you’ll want to do is have the home inspected for structural integrity, defects and potential problems. Note, this is not the function of a licensed appraiser who determines the market value for the home. A home inspection helps to ascertain the overall “health” of the house you’re about to buy. A bad roof, leaky plumbing or wood rot can usually only be found when a house doctor crawls through the attic, under the house and on the roof. If there are major problems found, potentially it can stop the deal dead in its tracks. That’s why most lenders won’t order appraisals on properties until an inspection has been performed.

 

Written By: David Reed. If you would like to continue reading, click here.

Inspecting Your Home Inspector

While most people (almost 80 percent) have their homes inspected prior to purchase, just who is it that is inspecting the inspector? We’ve all seen those hidden-camera stories of home inspectors missing major defects, glossing over major problems or finding problems that they then offer to fix (for a charge, of course).

Since the industry isn’t closely regulated, it is important to make sure your home inspector is well trained and insured, especially since you are relying on the home inspector’s professional assessment to help decide on the biggest investment of your life. To help make sure your professional home inspector is just that— “professional”— the National Institute of Building Inspectors (NIBI), a leading home inspection training organization, offers the following tips to help “inspect your inspector:”

 

Written By: Realtor. If you would like to continue reading, click here.

Finding a Good Home Inspector

You’ve found the house, your offer has been accepted, and funding is in place. But before you start packing, be sure you hire a professional home inspector to make sure your house doesn’t have any major defects that could cost you down the road.

A home inspection typically includes an examination of heating and central air conditioning systems, interior plumbing, electrical systems, the roof, attic, visible insulation, walls, ceilings, floors, windows, foundations, and basements. Inspections may also include appliances and outdoor plumbing.

Once the inspector examines the house, he or she will write up a report with findings. If there are any major problems, you’ll need to negotiate with the seller to either lower the sale price of the home, or determine how the problem will be fixed.

 

Written By: Michele Dawson. If you would like to continue reading, click here.

12 Red Flags That Should Raise Concern

Indeed, more than 40 percent of the previously owned homes on the market have at least one serious defect, according to HouseMaster, a major home inspection company with offices in more than 390 cities in the United States and Canada.

“Virtually every ‘used’ home needs some repair or improvement,” said Kathleen Kuhn, CEO and president of HouseMaster. “That’s to be expected. But with today’s high prices, you want to make sure that you are aware of any major problems in a house you are considering purchasing, and what it will take to remedy the situation.”

Written By: Michele Dawson. If you would like to continue reading, click here.