HUD:  “Get a Home Inspection”

HUD: “Get a Home Inspection”

None other than the U.S. Department of Housing and Urban Development (HUD) provides an overview of home inspections and explains why it tells buyers to “Get a Home Inspection.”

Be an Informed Buyer

It is your responsibility to be an informed buyer.

For Your Protection

In a home inspection, a qualified inspector takes an in-depth, unbiased look at your potential new home.

 

You Must Ask for a Home Inspection

A home inspection will only occur if you arrange for one.

Appraisals are Different from Home Inspections

An appraisal is different from a home inspection and does not replace a home inspection.

FHA Does Not Guarantee Your New Home

If you find problems with your new home after closing, FHA cannot give or lend you money
for repairs, and FHA cannot buy the home back from you.

Radon Gas Testing

The United States Environmental Protection Agency and the Surgeon General of the United States recommend that all houses be tested for radon.

For Further Information

Read the full HUD document about Home Inspections here, while we outline the other Benefits of a Home Inspection.

Water Heater Temperature Safety

Water Heater Temperature Safety

The water heater is a key component of a home’s plumbing system. Because of that, it’s also important part of a thorough home inspection. One thing a home inspector should check is the temperature setting on the control valve.

You use the control valve to set the temperature on the water heater. (Most water heaters are gas-fueled.) High temperature settings can cause severe scalding at sink and shower faucets. A proper setting ensures against that safety hazard. Plus, you’ll have a lower energy bill with a lower valve setting.

All manufacturers preset a temperature on this valve. 120℉ is the most common setting. You can determine the setting on your heater by noting where the arrows on the dial and the metal plate align. The dial in the picture above shows a very high setting. A home inspector would usually identify this as a safety hazard and recommend you adjust the temperature to a lower setting.

The temperature setting is just one component of water heater safety. For more information on water heater safety, check out this article from Nationwide.

Mammoth Misconceptions When Buying a Home

Mammoth Misconceptions When Buying a Home

Common Misconception of Home Buying #1:

Buying a home is the smartest financial decision you will ever make. Thinking you can’t afford to buy is one of the common misconceptions of home buying.  In fact, most American and Canadian home owners would be financially broke at retirement if it weren’t for one saving grace — the equity in their homes. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership.

Real estate values have always risen steadily. Of course, there are peaks and valleys, but the long-term trend is a consistent increase. This means that every month when you make a mortgage payment, the amount you owe on the home goes down and the value typically increases. This owe less / worth more situation is called equity build-up and is the reason you can’t afford not to buy.

Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right people.

Misconception #2:  Not hiring a buyer’s agent

Buying property is a complex and stressful task, and real estate transactions have become increasingly complicated. New technology, laws, and procedures, as well as competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many home buyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyer’s agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer’s agents can help you find the best home, the best lender, and the best inspector. Best of all, in most cases, the buyer’s agent is paid out of the seller’s commission, even though he or she works for you. This is not the time to “do it yourself.”

Misconception #3:  Getting a cheap inspection

Buying a home is likely the most expensive purchase you will ever make. The cost of hiring a certified home inspection is very small – almost insignificant – relative to the value of the home being inspected. As a home buyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. This is no time to shop for a cheap inspection. Do not let your real estate agent, a less-than-qualified inspector, or anyone else talk you into skimping here.

Certified inspectors perform the best inspections by far. Certified inspectors earn their fees many times over. They do more, they deserve more, and, yes, they generally charge a little more. Your new home is an investment, and you should think of a professional inspection in the same way. Do yourself a favor and pay a little more for the quality inspection you deserve.

 

Homeowner’s Insurance Basics

Homeowner’s Insurance Basics

The largest single investment most consumers make is in their home. Consumers can protect their physical structures, possessions, and minimize liability with a homeowners’s insurance policy. This policy is actually a package that combines four types of insurance coverage in a single policy. They are:

1. Property Damage Coverage

Property damage coverage helps pay for damage to your home and personal property. Your policy will usually cover other structures such as a detached garage or any other building on your property for 10% of the amount of coverage on your house. Your personal property, including household furniture, clothing, and other personal belongings, are also covered. This coverage is usually 50% of the policy limit on your dwelling. The coverage is also limited by the types of loss listed in the policy. Also, it only pays the current cash value of the item destroyed, unless you purchase replacement cost coverage. The policy also provides off-premises coverage, meaning your belongings are insured against theft even when they are not inside your home.

2. Personal Liability Coverage

Homeowner’s policies provide personal liability coverage that applies to non-auto accidents on and off your property if the injury or damage is caused by you, a member of your family, or your pet. The liability coverage in your policy pays both for the cost of defending you and paying for any damages the court rules you must pay, and there is no deductible to meet before losses are paid. The basic liability coverage is usually $100,000 for each occurrence, although you can request higher limits for an additional cost.

3. Medical Payments Coverage

Medical payment coverage pays if someone outside your family is injured at your home regardless of fault. This includes payment for reasonable medical expenses incurred within one year from the date of  the injury or accident in your home. The coverage does not apply to you and members of your household. This part of your homeowner’s policy may also pay if you are involved in the injury of another person away from your home. Medical payments coverage limits are generally $1,000 for each person.

4. Additional Living Expenses

If you need to move into a hotel or apartment temporarily, your insurance company will pay up to 20% of the policy limit on your dwelling for these expenses. However, if you move in temporarily with a friend or relative and do not have any extra expenses, you will not be paid for additional living expenses.

 

An Important Exclusion

Do you operate a full or part-time home-based business? Don’t assume your homeowner’s insurance policy covers all of your home business needs. If your policy provides coverage at all, it’s probably limited. You’re probably only covered for a maximum of $2,500 for equipment in your home and $250 for equipment off-site.

Eight Reasons You Should Have a Home Inspection BEFORE Listing

Eight Reasons You Should Have a Home Inspection BEFORE Listing

Eventually, your buyers are going to conduct an inspection before closing on your home. A smart seller finds out what to expect from that inspection. How? By getting there first with a pre-listing home inspection.

How does a home inspection before listing help sellers?

  1. First and foremost, you’ll see your home through the eyes of a critical third-party.
  2. It will help you price your home realistically.
  3. You’ll be able to make repairs ahead of time so defects won’t become negotiating stumbling blocks.
  4. You can help prevent Use and Occupancy Permit delays.
  5. An inspection before listing gives you time to get reasonably-priced contractors for repairs or make them yourself.
  6. A home inspection before listing may relieve a prospective buyer’s concerns or suspicions. Buyers without concerns are more likely to waive an inspection contingency.
  7. Adding professional supporting documentation to your disclosure statement reduces your liability.
  8. The inspector may find items that need immediate attention. Examples include radon gas or active termite infestation. You must address these concerns for the safety of your family and visitors to your home.

You should make copies of the inspection report and receipts for any repairs available to potential buyers.

Getting a home inspection before listing your house will pay off when it comes time to close. Contact 3-D Home Inspection today to find out more about why home inspections are not just for buyers anymore.

What You Should Know About Electrical Systems

What You Should Know About Electrical Systems

Electrical systems are an essential part of today’s lifestyle.  They power most modern home conveniences, such as lights, appliances, furnaces, air conditioners, televisions, entertainment centers, and computers.  An electrical system found in a typical home includes incoming power from a utility company, meter box, main disconnect switch, service panel, breakers or fuses, branch circuits and, at times, sub-panels. All of these supply power to light fixtures, ceiling fans, appliances and other equipment.

Electrical needs are continually growing.  Houses built prior to 1940 may still have their original service capacity of 30 or 60 amps, while 100-amp service became the norm sometime in the 1970s.  Since the 1990s, most new construction includes 200-amp service.

Utility companies provide power through wires to the meter box from either an overhead service drop or underground conduit.  Most older houses have service drops.  Three wires (two hot and one neutral) run from the utility company’s transformer to the meter box.  These wires, in turn, run to a service panel located on an interior wall near the meter box.

Electrical System Disconnect Breakers

Most service panels have an integrated main disconnect breaker, fuse, or lever.  A main disconnect that is not in the service panel may be in a separate panel near the service panel or outside at the meter box.  The main disconnect controls the electricity to the breakers or fuses.  Branch circuits are controlled by the breakers or fuses and are made up of wire, a means to distribute this wire (i.e. knob & tube, non-metallic cable, plastic or metal conduit & junction boxes), outlets, and/or switches.  In a 120-volt circuit there are two wires, one hot (usually black or red) and one neutral (white).  In a 240-volt circuit there are three wires, two hot (usually black or red) and one neutral (white).

Grounding Systems

Grounding is a separate system within the electrical system.  An effective grounding system disposes unwanted electricity to the ground, removing the potential for shock or electrocution.  Today’s practice has ground wires running from outlets and various fixtures to the neutral buss bar in the service panel.  Electricians also use wires or straps to bond metal components that are not supposed to carry electricity.  Ground wires also run from the neutral buss bar to water pipes and/or grounding rods, thus completing the circuit and making an effective ground.

Circuit Breakers

Breakers or fuses are the weak link in the branch circuit.  This is deliberate, serving as the fail safe if the circuit draws more current than it is designed to conduct. Otherwise, the wires would heat up with the potential for fire.  Breakers trip and can be reset, while fuses have to be replaced.  Single pole breakers typically come in 15 and 20 amps, which provide 120 volts. Double pole breakers are designed up to 50 amps and are used for dedicated appliances or equipment such as air conditioners, electric dryers, ranges, stoves and the like.  Electricians use two basic types of fuses for home service panels. Cartridge comes in small (15 to 30 amp), medium (35 to 60 amps) and large (100 amp).  Appliances and equipment that require 240 volts of electricity usually employ cartridges. The second type, conventional, typically comes in 15 to 30 amps.

What are GFCI and AFCI?

A Ground Fault Circuit Interrupter (GFCI) or an Arch Fault Circuit Interrupter (AFCI) can also provide protection for circuits. There are both GFCI breakers and outlets.  The purpose of both is to provide protection (in fractions of a second) from the likelihood of fatal shock in areas such as kitchen countertops, bathrooms, laundry room & tubs, garages, and basements. GFCI breakers protect the entire circuit, while GFCI outlets only protect the outlet on which they are installed and outlets downstream from them.

AFCIs protect from fire. AFCI breakers detect if there is an arch when electricity moves from one conductor across an insulator (either air or solid insulating material) to another conductor.  The heat generated in this process can ignite near combustible materials.  Damaged electrical cords or outlets not properly installed can create arch faults.

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