I recently found a very informative article on home inspections, and thought I would pass it on to you. I will intersperse my comments, in italics, and link to the original site of the story at the bottom
A home inspection can do more than just satisfy curiosity – it’s an opportunity to learn as much as possible about your prospective purchase and its hidden potential… or pitfalls
Would you buy a used car privately off someone without having a qualified and objective mechanic give it a thorough once-over? Of course not. So when it comes to one of the most significant purchases you’ll ever make in your life, a proper home inspection is not only necessary – it’s essential.
Homes inspectors check all of the major systems in a home, such as the plumbing, electrical, heating and air conditioning. They’ll also do a visual inspection of the foundation, doors, ceilings, roof, walls, windows, plumbing, ventilation, insulation, sewage system, lot and garage – at the very least. Their services are required to protect your investment and insure there are no structural issues or flaws in the house that you may not be aware of.
[Note that inspectors, typically, only check what the naked eye can see, although the inspector we recommend does use an infa-red camera to 'see' inside the walls]
“We’re an unbiased eye there to protect them and their investment,” says Jennifer Lucas, of AmeriSpec Home Inspection Service in Edmonton.
Unlike homebuyers themselves, whose observations are partial, a home inspector performs his role with an unbiased attitude and with the best interests of the customer in mind. By identifying existing or potential areas of concern, the inspection report will help secure your investment, avoid post-closing surprises and provide you with peace of mind. An insightful report is fundamental to ensuring you make the right buying decision.
[Be careful when hiring a home inspector. On a regular basis, I am approached by people calling themselves a home inspector, and then proceeding to tell me that they will not only guarantee that the home passes the inspection, but they will also give me $100 of their fee!]
The process usually takes about three hours, during which time the house is examined from the ground up. The inspection includes observation and, when appropriate, operation of the plumbing, heating, air conditioning, electrical, and appliance systems, as well as structural components such as the roof, attic, foundation, basement, exterior and interior walls, chimney and doors.
For condominiums, the magnifying glass is usually focused on elements such as the type of structure and its rain-sealing system; condition of the grounds, walkways, driveways and parking garage; condition of the roof; type and condition of the balconies; type and condition of windows and doors; and the level of finish, workmanship and care.
[Most inspection companies charge a lower fee for a condominium inspection, because they take less time and less items are covered.]
According to George Pappas, president of Pappas Home Inspections Inc., Toronto, inspections usually take about three hours for a two-storey detached house, two to three hours for bungalow and one or two hours for a two-bedroom high-rise condo. Costs range similarly, from about $365 for a condo to $425 for a bungalow or detached house (plus GST).
[In the Milton area, a condo inspection is typically $275 to $300, and a detached house up to 2300 SqFt is $350 - $375]
Home inspections cover about 1,000 check-points in approximately 400 items around the home. Findings are usually provided in the form of a comprehensive report, together with a recommended action, AmeriSpec says. It is important that such a report include an objective evaluation of the condition of the home, clearly relating existing defects and indicating potential problems.
Peace of mind
“The clients know what the problems of the home are, how much money they require to fix and how much money they will need to invest in their home within the first five years or so,” says Pappas. “The clients learn which areas of the home are upgrades or are of superior quality and construction.”
Armed with this information, the home purchasers can then make a wise and safe investment in their home with confidence, he says.
“Peace of mind,” stresses Pappas. “That’s the ultimate benefit of an inspection – gaining confidence and peace of mind.”
The time to arrange a home inspection is during your ‘conditional period,’ – a length of time, usually about 10 days, that you can negotiate in your offer to purchase. This protective clause affords you the right to contract a complete general home inspection.
[In the Milton area, a time-frame of 3 to 5 days is the norm for any condition period, save that of the sale of the Buyer's house]
There is no formal licensing of home inspectors, but reputable companies adhere to the rigid standards of practice established by the Canadian Association of Home & Property Inspectors. Many other associations impose certain standards as well.
Qualified inspection companies will provide a sample report to substantiate that they abide by industry standards. One of the key guidelines is that ethical inspectors neither perform the repairs nor do they refer clients to repair companies. To do so would be considered a conflict of interest.
Once you have arranged for a home inspection, plan to accompany the inspector for the entire procedure, Lucas says. You have the right to be there. Good home inspectors will encourage this, since the buyer will probably need to learn the locations of major valves and shut-offs in their new house. Accompanying the inspector will also help you better understand the findings in the report.
Accompany the inspector
“We strongly encourage our clients to attend our home inspections,” adds Pappas. “When the client attends the home inspection, our inspector will physically show the client both the areas of concern and the benefits of the home construction. The client has a much better understanding of the quality of the home and a far greater and deeper understanding of what they’re about to get into.”
By accompanying the inspector, AmeriSpec says, the valuable insights gained will help you:
See first-hand the condition of each key component throughout the house and property so you will have a better understanding of your house and of the inspection report.
Allay concerns about findings which, on paper, may seem distressing but in fact may be superficial. For example, the inspector might explain that an alarming noise coming from an appliance can be quieted by some lubricant, or that an unsightly column needs only a coat of paint, or that the problem that caused a water spot has already been corrected.
Learn about the operation of your new home such as how the heating system works, how to control pilot lights, how to turn on various appliances and components, and where shutoffs. This will all save time and avoid frustration in the future. The inspector can point out maintenance needs and procedures and explain how and when to check items needing periodic monitoring.
Have all of your questions and concerns addressed immediately as they arise. Before the inspection, prepare a list of questions or concerns about the property. Relate these to the inspection company in advance to ensure that such matters will be properly addressed and that any special arrangements can be made if necessary. Bring your list to the inspection to make sure.
Sourcing
It’s important to find a qualified, experienced home inspector because at present, there are no standards for this occupation. “That’s scary,” Lucas says, “because anyone can call themselves a home inspector.”
First-time homebuyers should go to any chapter of the Canadian Association of Home & Property Inspectors when looking for a reputable inspector. They can be assured that these inspectors have some form of training or are en route to the training that each province has designated as required for membership. She cautions that anyone calling themselves a ‘certified’ home inspector may have only taken an online exam or two-week home study course and may offer bargain prices.
“Sometimes first-time buyers put all of their money into their down payment and are picking an inspector based on price,” says Lucas. “That’s not the right way to go in this case.”
It’s a good idea to interview home inspectors before booking an appointment. Have them explain what they’re going to do and ask them about the length of time the inspection should take. “If anyone is saying they can do it in an hour they’re not spending the time they should,” she says.
Lucas suggests asking the potential home inspector if they have errors and omissions insurance. It’s used to protect both the home inspector and the buyer should anything be missed. “That insurance isn’t very cheap and insurance companies don’t just issue those policies to anybody, so you can bet the insurance companies will make sure those inspectors are trained to a certain level.”
[Any good home inspector will also carry liability insurance, so that they are covered for any damage they cause to the property during the inspection. I have personally seen an inspector break a thermostat, break a window, damage a furnace, etc.
My recommendation is that a Buyer should trust their agent's recommendation of an inspector, because the agent will know which inspectors to trust. If you trust your agent, trust the professionals they recommend.]
When Siobhain McCawley-Game, 32 and her husband, Steve Game, 34, bought their first home in Ottawa in August 2008, their realtor, Jennifer Kelly of Sutton Group Premier Realty, recommended their home inspector.
What impressed the couple most about the inspector was the fact that he spent four full hours on the job. In addition, he encouraged the couple to accompany him on the inspection, so they could benefit by seeing everything he saw, or rather, everything he was looking for. Kelly and even a friend of the couple who had home-buying experience were also allowed to attend the inspection.
Future steps: repairs and renovation
While not intended for this purpose, the inspection – and you tagging along – might also give you some insight into potential opportunities for repairs and renovations that not only make your home more pleasant to live in, but may also increase its value. And with the federal government’s new Home Renovation Tax Credit, you may have financial incentive to undertake some of these projects once you become a homeowner.
Unveiled Jan. 27, 2009 in the federal budget, the HRTC will provide Canadians up to $1,350 in savings for money spent on home renovations through a temporary 15% income tax credit on eligible home renovation expenditures for work performed or goods acquired up to Feb. 1, 2010. The credit can be claimed on eligible expenditures exceeding $1,000 but no more than $10,000.
Renovation costs for projects such as finishing a basement or remodeling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.
Eligible expenditures include renovating a kitchen, bathroom or basement; new carpet or hardwood floors; building an addition, deck, fence or retaining wall; a new furnace or water heater; painting the interior or exterior of a house; resurfacing a driveway; and laying new sod.
Here are some things to keep in mind when planning a change or renovation:
Think about how changes might appeal to someone buying your home in the future. You can make very personalized changes with paint because it is inexpensive and can easily be changed. However, items like flooring, cabinets and countertops have a longer life – make choices that will also be appealing to others.
Think about getting your home energy-rated. This will tell you how energy efficient your home is and what improvements are possible. Visit the Natural Resources Canada Office of Energy Efficiency atwww.oee.nrcan. gc.ca/residential to learn more about the ecoENERGY Retrofit program.
Updating the bathrooms and kitchens in an older home can increase its resale value.
Don’t underestimate the importance of landscaping. The right planting can improve the appearance and value of your home.
Updating your exterior paint, installing new roofing, resurfacing your walkways and driveway, adding attractive mailboxes and front-yard planting can also increase value. Over time, renovations can practically pay for themselves, especially if they result in savings on utility bills, a higher selling price or years of greater comfort and enjoyment in your home.
Home inspection 101
A home inspection is a visual examination of a house and property, including:
a thorough visual inspection of the structure (inside and out, from foundation to roof)
an examination of all major systems
an objective evaluation of the condition of more than 400 items
a printed report covering all findings and identifying potential concerns
Source: AmeriSpec
Most appealing upgrades
kitchen cabinet upgrade
hardwood floor upgrade
new windows
removing walls to open up space
finishing the basement
kitchen appliance upgrade
new shingles
new bathroom taps and plumbing
new bathroom tiles
Source: AmeriSpec Home Inspection Service
Hidden danger signs
Some items to be cautious about if they come up on your home inspection report:
Poor surface drainage: Water can have a devastating effect on a structure, either directly through moisture damage or consequentially through soil related settlement. Many homes with persistent water intrusion problems will show no physical evidence, due to cleanup efforts of the owners.
Foundation cracking: In most cases, foundation failure is a result of poor surface drainage. Look for a vertical crack eight inches in from the corners. Where there is one, there is a companion probably below grade.
Radon gas exposure: Radon is a tasteless, odourless and colourless radionuclear gas formed in rock and soil due to the natural breakdown or radioactive decay of, a natural element, uranium-238. This element makes up about three parts per million of the earth’s crust.
Ice damming: Ice dams are responsible for clogged and damaged eavestroughs, wet insulation in the roof and walls. Wet wood, paint failure and decay will result if the problem persists.
Galvanized plumbing: Galvanized pipes are usually found in homes over 50 years in age. Commonly, these pipes will rust from the inside out, often restricting waterflow.
Eventually the pipe becomes blocked or bursts. Importantly, some insurance companies are now refusing to provide homeowner’s insurance on houses with this type of plumbing.
Failures of polybutylene: Polybutylene (Poly-B) piping has resulted in leaking pipes, possibly causing water damage. Homeowners can determine whether their homes have Poly-B by looking for grey-coloured flexible plastic pipe or tubing. The plastic insert fittings can leak with either aluminum or copper bands related to improper installation procedures rather than the materials.
Electrical problems: Almost every home has an electrical problem, some a missing ground or reverse polarity to under sized breakers and panels. Homes built before 1955 may have 60 amp services, and may not be insured by some companies until they’re upgraded. This type of outlet will have only two prongs.
Structural problems: Some larger than average homes have rafters that over-span. The roof sags and over time it may fail. Also watch for over-spanned beams or poorly reinforced beams especially when a post is moved for basement renovations. A pool table in the basement is a concern for the inspector to investigate further.
Poor air barrier and insulation: Just about every home inspected requires additional caulking and insulation. The investment in caulking is returned in just a few months and additional insulation in key areas can have a ROI in less than three years.
Improper venting: A major issue is bathroom vents that are not vented directly outdoors. This is exacerbated when it is coupled to a plastic ‘slinky’ hose and the hose traps the condensation and leaks.
Source: Canadian Association of Home and Property Inspectors
Top 3 defects
Problems revealed by home inspections vary depending on the construction type, area of the city and age of the home. Still, there are three common problems which all carry significant cost. The life-cycle of these items is approximately 20 years, at which time these systems often need to be replaced.
1. Shingles or flat roof: For energy efficiency, structural damage and, for a flat roof, snow accumulation can lead to serious damage, leakage or collapse.
2. Furnace: For safety, energy efficiency and operating costs.
3. Central air conditioning: For energy efficiency and operating costs.
Source: Pappas Home Inspections Inc.
Case study: Home inspection gone wrong
When Stacey and Chris Solilo decided to invest in a home inspection, they thought it was part of the home buying process that would save them money in the long run. However, by not choosing a qualified inspector, they walked into a deal that they sorely regret.
“After we purchased the house, we had a contractor come out to look at the work that needed to be done, and they found some very major flaws,” says Stacey. “If you were trained to notice them, you would have.”
The couple purchased a 1.5-storey home for $74,900 in Regina. They thought they were getting a bargain when the initial home inspection resulted in an estimated cost of $7,000 for repairs.
After the renovation contractor noticed a few deficiencies, they hired specialized inspectors to perform more thorough checks, such as a foundation and mold inspectors. In reality, there was more than $16,000 in repairs needed. The original home inspector missed many items, including the fact that the windows and venting pipes needed to be replaced, the slab foundation was cracking and the chimney was separating from the basic structure.
The pair learned the hard way how important it is to do a bit of homework and ask a lot of questions when hiring a home inspector.
Questions to ask prospective inspectors
Do you follow industry standards?
Can you supply me with a sample report?
Are you a full time home inspection company?
What other home services do you offer?
Can I attend the inspection?
How much time will it take?
When will the report be ready?
Do you perform repairs on items you inspect?
What will I receive with the inspection report?
What will be inspected?
How much will the service cost?
Do you carry errors and omissions and general liability insurance?
Do you provide an inspection agreement which defines the scope of the inspection?
Source: AmeriSpec Home Inspection Service
http://www.yourfirsthomecanada.ca/features/the-value-of-home-inspections/35918
