What would it mean to you if the "Canadian housing bubble," so widely speculated about in the media, burst? The point is, regardless of what lies ahead, you have the power to take steps to protect your real estate if you always know what your options are.
If everyone talks about bubble bursting long enough, won't this become a self-fulfilling prophecy? All that talk about future interest rate increases drove the "before it hits" buying and price increases. Now, pundits blame consumers who have little power over those who have a lot of power. British Columbia and Ontario governments chose to go from GST to HST in a recessional economy. Hasn't that thinking compounded the "before it's too late" buying in already over-heated markets? Makes you wonder what consumers would have done without "the window of opportunity is closing" media hype, government policies and marketing campaigns.
Instead of just worrying about pending disaster—real or imagined—figure out what your personal worst-case scenario would be and replace worrying with action. Global influences, weaknesses in government policy and self-serving corporate interests on global, national and regional scales may have an impact on what happens on your street, but increase your stability and security so you're ready to meet challenges head on. Global influences, weaknesses in government policy and self-serving corporate interests on global, national and regional scales may have an impact on what happens on your street, but increase your financial stability and security and you can anticipate challenges.
Begin bounce-back strategizing before there is anything to bounce back from. In other words, continually strengthen financial weakness and remove vulnerability. Face fears and take action. What can you do to avoid, or at least lessen, the financial or other consequences you fear? Higher monthly payments? Job loss? Not making a big profit when you sell? Don't just worry. Use anticipation as a positive force and reduce stress in the process.
Search out constructive, unbiased advice and creative solutions for potential problems that have you concerned. Do you need debt counselling, a career review or another type of financial overhaul? Don't be shy about tapping into the wealth of usually free real estate and mortgage knowledge held by local real estate professionals. Real estate in the US and Europe has been hard hit for many reasons and on many fronts. There are many lessons-learned and creative solutions to draw on when there is time to act.
No one knows what is coming next even though some are better at making their educated guesses sound like facts. Collect insights and analysis from diverse sources, inside and outside Canada, online and off, instead of relying on regurgitated information from friends and media.
Here are 5 forward-thinking realities to include when you're determined to strengthen your resilience, protect your real estate and amplify your bounce-back ability in the face of economic uncertainty:
1. Local, Not National Media and pundits should talk about "the Canadian real estate market" as a "them" not an "it." Real estate markets are local reflections of various economic, political and social factors on real estate value. A market may encompass a few streets or a section of town. Even when real estate is hot, there are local markets where prices stay about the same and even some areas where values drop for local reasons. Some neighbourhoods are always "hot" and others are far from it for reasons that matter to locals. Within any neighbourhood, all locations are not considered equal. One end or side of a street may hold greater value than the other. How would you rate your location? For instance, homes on busy roads or backing onto commercial properties like malls may be more sensitive to economic ripples than the choicest addresses in an area. If you're not sure, check with local real estate professionals. If you feel financially vulnerable, learn what selling now would accomplish. Whether you take this step or not, the knowledge will help with informed decisions if changes do occur.
2. When, Not If Real estate is cyclical. What goes up, comes down and then goes up again. Timing is always the issue. Prices will decline—that's real estate. The questions from your perspective are "When?", "By how much?" and "For how long?" There'll always be lots of opinions, but only hindsight reveals the true answers. Decide what would be bad for you and why. Then, with appropriate professional financial and real estate advice, consider available strategies. For instance, if the value of your home drops, but you don't want to sell or refinance, maybe all that happens, relative to your real estate, is that market-value property taxes decline. Even if prices decrease, as your mortgage is paid off, your equity or accumulated value in the home increases, so concentrating on a speedy pay-off may provide a financial advantage to offset pricing.
3. Not buy "high," but sell "high" If you flaunt proven investment principles like "buy low, sell high," why do you expect to do as well financially if you bought high and may have to sell low? If you leap into the market at its peak or get pushed over your limit in a multiple-offer battle, wouldn't you expect to be more restricted in your resale options? Those who decide that the joys of ownership—home, a roof over your head, sharing with your family—carry important value may be willing to wait until real estate prices improve. Hunker down and concentrate on value-added improvements over time.
4. Learn about money, don't just spend it Mortgage interest is the cost of the money you borrowed, not the real estate. Learn everything you can about cutting this cost. An increase in interest rates does not change your monthly payments of principal, interest and taxes in the middle of your current term, unless it's a variable rate mortgage. Did you check on the cost of moving from variable to fixed when you signed up? If not, why not? Ignorance can be expensive. Understand mortgage rules. Pay off your mortgage more quickly and cut interest costs. You'll also end up with a great credit rating which should entitle you to better rates on renewal.
5. Not liability but financial resource Stop thinking like a caretaker and start acting like an investor determined to succeed in the business of owning real estate. Operate a business from your home, take in boarders or rent out a portion of the property and you're using your home to create income, gather tax advantages and cut costs. You may only need home-based income for a while, but never forget that there are choices as a property owner.
Stay frozen in the bubble-bursting headlights and that inaction may be a bigger problem than economic conditions. Be prepared to do well and use your knowledge of real estate as an investment. Don't have that knowledge? Yes, you do—just ask your local real estate professionals.
So is it one bubble or many small ones?
This article was published in Realty Times
Written by: PJ Wade, May 4, 2010
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Or Visit our Website: www.LivingLakeTahoe.com
Monday, May 17, 2010
Friday, May 14, 2010
Are You Looking For Property In Lake Tahoe?
Great News for Buyers!If you are looking for property in Lake Tahoe...We have the perfect solution for you!
This warm and inviting two bedroom, two bath, end unit is located in a peaceful cul-de-sac setting. Features include a convenient mud room with a large storage closet which is perfect to store all of your winter and summer recreational toys. The living room offers a freestanding fireplace to keep you cozy on chilly nights and opens onto a large sun deck overlooking a lovely open area. This condo is on one level for easy access and also has a one car attached garage.
Call Us For Details!
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Wednesday, May 12, 2010
Real Estate Outlook: The Federal Reserve
What should we make of the latest reports on rising home sales and the Federal Reserve's promise to keep interest rates low indefinitely?
Should we worry that at least some of the sales are being pushed forward by the expiring tax credits? Though that may be the case, take a minute and join the economists at the Fed to see the bigger picture. What's going on in the economy nationwide?
In its "open markets committee" statement issued last week, the Fed pointed to the underlying positives: Overall national "economic activity continues to strengthen," it said, and "the labor market is beginning to improve." Of course there are challenges to keeping the rebound rolling along, but the direction for the year as a whole is good.
The Fed's statement provides useful context for some of the encouraging numbers being racked up in the housing market. For example:
The Commerce Department reported last week that new home sales in March were up by 27 percent -- hitting their highest levels since July of 2009. Even the median sale price was up by 4.3 percent compared with the same month the year before.
Home resales in some major markets were up impressively as well, such as in Chicago, where sales jumped by 50 percent last month over the year before, and were 48 percent higher than they were in February. Florida sales were 37 percent higher in March than February and were up by 24 percent compared with the year before. Las Vegas saw its highest sales totals in four years.
Not surprisingly, applications for new mortgages to purchase homes have been rising strongly as well. The Mortgage Bankers Association reported a 12 percent surge in purchase applications for the latest week. No question the expiring tax credits requiring signed contracts by April 30 played a role in that number.
Meanwhile, the National Association of Business Economics, a group that represents corporate and government economists, just came out with an upbeat forecast as well. Three-quarters of the economists surveyed expect growth in the national gross domestic product (GDP) of two percent or higher through the balance of the year.
Twenty two percent of the private companies polled reported their payrolls and employee numbers increased in March, up significantly from the month before.
So the bottom line to keep in mind about the latest statistics and projections is this: The underlying economic factors, growth in jobs, growth in output, rising consumer expenditures and confidence, are the critical numbers to watch for future housing activity.
And at the moment, the consensus is that they look pretty promising.
Published on Realty Times
Written by Kenneth R. Harney
May 3, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Should we worry that at least some of the sales are being pushed forward by the expiring tax credits? Though that may be the case, take a minute and join the economists at the Fed to see the bigger picture. What's going on in the economy nationwide?
In its "open markets committee" statement issued last week, the Fed pointed to the underlying positives: Overall national "economic activity continues to strengthen," it said, and "the labor market is beginning to improve." Of course there are challenges to keeping the rebound rolling along, but the direction for the year as a whole is good.
The Fed's statement provides useful context for some of the encouraging numbers being racked up in the housing market. For example:
The Commerce Department reported last week that new home sales in March were up by 27 percent -- hitting their highest levels since July of 2009. Even the median sale price was up by 4.3 percent compared with the same month the year before.
Home resales in some major markets were up impressively as well, such as in Chicago, where sales jumped by 50 percent last month over the year before, and were 48 percent higher than they were in February. Florida sales were 37 percent higher in March than February and were up by 24 percent compared with the year before. Las Vegas saw its highest sales totals in four years.
Not surprisingly, applications for new mortgages to purchase homes have been rising strongly as well. The Mortgage Bankers Association reported a 12 percent surge in purchase applications for the latest week. No question the expiring tax credits requiring signed contracts by April 30 played a role in that number.
Meanwhile, the National Association of Business Economics, a group that represents corporate and government economists, just came out with an upbeat forecast as well. Three-quarters of the economists surveyed expect growth in the national gross domestic product (GDP) of two percent or higher through the balance of the year.
Twenty two percent of the private companies polled reported their payrolls and employee numbers increased in March, up significantly from the month before.
So the bottom line to keep in mind about the latest statistics and projections is this: The underlying economic factors, growth in jobs, growth in output, rising consumer expenditures and confidence, are the critical numbers to watch for future housing activity.
And at the moment, the consensus is that they look pretty promising.
Published on Realty Times
Written by Kenneth R. Harney
May 3, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, May 10, 2010
10 Tips for Water Conservation
As warm weather makes it way across the nation, sprinklers come out of hibernation and return to their full time positions, pools fill up, and many a garden hose sees daylight for the first time in months.
But in an era where water shortages are a sad but true realty, many homeowners are now concerned with how to conserve water.
Here are 10 tips to help your family use water more responsibly.
· Sprinkler Use. Homeowners want lush, green lawns. This is understandable when one considers that curb appeal can mean added value and better resale potential. To make your sprinklers as efficient as possible, try to use them during the coolest hours of the day, either during the morning or evenings. This helps to minimize evaporation due to heat. And adjust your sprinklers so that you aren't watering the sidewalk or driveway.
· Rain Sensors. While you're at it, install a rain sensor on your irrigation controller. There is no need to water your lawn when nature is already handling the job for you.
· Responsible Landscaping. Not every region of the country has the climate for lush, green yards. Consider following the lead of Southwestern homeowners, who opt to plant drought resistant plants, supplemented by rocks and stone.
· Washing Dishes. Have one side of your sink filled with soapy water to wash dishes, and then fill the other side of your sink with clean water for rinsing. This keeps you from having a steady stream of water running as you rinse.
· Washing Clothes. Energy Star rated appliances reportedly use 30 to 50 percent less water, not to mention giving you incredible energy savings. Consider replacing your old washer with a newer, more efficient one.
· Water Level. This tip goes hand in hand with tip number five. Be sure that your load size matches the load setting. A large load setting utilizes more water, so adjust accordingly.
· Cleaning the Drive. Consider using a broom instead of a hose or powerwasher to clean your driveways and sidewalks. Recent statistics say this small change can save 80 gallons of water every time.
· Low-flush Toilets. Newer, efficient toilets use around 1.6 gallons a flush, as opposed to 3.5 with standard toilets. According to water conservationist George Whalen, these bathroom fixtures can save you up to $100 a year in utility costs.
· Water-efficient Showerhead. Use one. They're a breeze to install. They can be very inexpensive and they can save you up to 750 gallons of water each month.
and
· Pools. Pools can have leaks that are hard to find. To be a true Sherlock Holmes, use a grease pencil to record the water level of your pool and then check in 24 hours to see if the water level has remained consistent.
This article was published in Realty Times, Written by: Carla L. Davis
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or Visit our Website: www.LivingLakeTahoe.com
Friday, May 7, 2010
Mortgage Rates at Lowest Level in Six Weeks
Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.00 percent with an average 0.7 point for the week ending May 6, 2010, down from last week when it averaged 5.06 percent. Last year at this time, the 30-year FRM averaged 4.84 percent.
The 15-year FRM this week averaged 4.36 percent with an average 0.7 point, down from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.51 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, down from last week when it averaged 4.00 percent. A year ago, the 5-year ARM averaged 4.90 percent.
The 1-year Treasury-indexed ARM averaged 4.07 percent this week with an average 0.6 point, down from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 4.78 percent.
"Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005."
"The homebuyer tax credit helped support home sales in March, and anecdotal reports point to strong April sales as well. Pending existing home sales rose for the second consecutive month in March to the strongest pace since October 2009, just before the original deadline for the credit, based on figures published by the National Association of Realtors®. Three of the four Census regions showed an up tick in sales, led by the South with a 12.7 percent gain, while sales in the Northeast fell 3.3 percent. To receive the federal tax credit, homebuyers had to sign contracts by April 30th and settle by June 30th of this year."
This article was published in Realty Times, May 7, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or Visit our Website: www.LivingLakeTahoe.com
The 15-year FRM this week averaged 4.36 percent with an average 0.7 point, down from last week when it averaged 4.39 percent. A year ago at this time, the 15-year FRM averaged 4.51 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.97 percent this week, with an average 0.7 point, down from last week when it averaged 4.00 percent. A year ago, the 5-year ARM averaged 4.90 percent.
The 1-year Treasury-indexed ARM averaged 4.07 percent this week with an average 0.6 point, down from last week when it averaged 4.25 percent. At this time last year, the 1-year ARM averaged 4.78 percent.
"Treasury bond and note yields declined this week, and rates on fixed-rate mortgages and hybrid ARMs followed suit," said Frank Nothaft, Freddie Mac vice president and chief economist. "Rates for both the 30-year and 15-year fixed-rate mortgages were the lowest in six weeks; initial rates on 5/1 hybrid ARMs hit an all-time low since they were added to the survey in the beginning of 2005."
"The homebuyer tax credit helped support home sales in March, and anecdotal reports point to strong April sales as well. Pending existing home sales rose for the second consecutive month in March to the strongest pace since October 2009, just before the original deadline for the credit, based on figures published by the National Association of Realtors®. Three of the four Census regions showed an up tick in sales, led by the South with a 12.7 percent gain, while sales in the Northeast fell 3.3 percent. To receive the federal tax credit, homebuyers had to sign contracts by April 30th and settle by June 30th of this year."
This article was published in Realty Times, May 7, 2010
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or Visit our Website: www.LivingLakeTahoe.com
Wednesday, May 5, 2010
Common Buyer Fears
Whether you are a first time home buyer or someone who is looking to move up or down, getting into the market can be a fearful time.
Here are some of the most common buyer fears:
Do I have enough money to buy a home?
To first step to finding out how much home you can truly afford is to get pre-qualified for a mortgage.
Also, take a step back and look at your finances. Ideally, you should have around 20 percent of the purchase price to put down. You should also have less than a 36 percent debt to income ratio. Be sure to include all of your monthly obligations in that equation, including student loans, child support payments, alimony, car payments, credit cards, etc.
Once you've looked at your savings, make sure that apart from your down payment, you'll have enough left over to pay closing costs, which include such things as attorney fees and transfer fees. The National Association of Realtors (NAR) reports that this amount averages between 2 and 7 percent of the home price. You also need to have money left as a cushion. What if unexpected repairs, either to your house or car, come up? What if you or a family member needs medical attention? Be sure that you have enough money leftover after the purchase to keep your life running smoothly.
Will I have buyer's remorse?
There is no such thing as the perfect house, so you should prepare yourself for some mild feelings of "what if". You may have to give up a few "wants" to get a few "needs" when you buy your next home. Or if this is your first purchase, you may have to buy something a little short of your dream house, and build equity in order to move up at a later date. Try not to lose sight of the big picture. This is a home that you own. You now get the benefits of tax breaks. You are building equity as you pay off the loan. And, hopefully, your home will appreciate in value over the coming years.
How can an unhandy owner handle repairs?
Before you swear off doing some of your own projects or repairs, know that everyone starts somewhere. Take a class at your local home improvement store, invest is a handyman's guide, or ask a friend that has already tiled their bathroom or fixed a leaky sink to come and give you some pointers.
Be prepared for repairs, maintenance, and updates. Even with a new home, there will be projects. Plan accordingly financially. And if all else fails, hire a professional.
What if I need to move?
Experts recommends that to build equity, you need to have owned your home for at least 3 to 5 years. The NAR recommends, "Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you've owned your home for five or more years, you may have significant, unrealized gains." If the time is less than five years, then you should be prepared to not make any money on the sale of your home, and even, to "lose" some -- in the form of closing costs.
Article Published on Realty Times
Written by Carla L. Davis
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Here are some of the most common buyer fears:
Do I have enough money to buy a home?
To first step to finding out how much home you can truly afford is to get pre-qualified for a mortgage.
Also, take a step back and look at your finances. Ideally, you should have around 20 percent of the purchase price to put down. You should also have less than a 36 percent debt to income ratio. Be sure to include all of your monthly obligations in that equation, including student loans, child support payments, alimony, car payments, credit cards, etc.
Once you've looked at your savings, make sure that apart from your down payment, you'll have enough left over to pay closing costs, which include such things as attorney fees and transfer fees. The National Association of Realtors (NAR) reports that this amount averages between 2 and 7 percent of the home price. You also need to have money left as a cushion. What if unexpected repairs, either to your house or car, come up? What if you or a family member needs medical attention? Be sure that you have enough money leftover after the purchase to keep your life running smoothly.
Will I have buyer's remorse?
There is no such thing as the perfect house, so you should prepare yourself for some mild feelings of "what if". You may have to give up a few "wants" to get a few "needs" when you buy your next home. Or if this is your first purchase, you may have to buy something a little short of your dream house, and build equity in order to move up at a later date. Try not to lose sight of the big picture. This is a home that you own. You now get the benefits of tax breaks. You are building equity as you pay off the loan. And, hopefully, your home will appreciate in value over the coming years.
How can an unhandy owner handle repairs?
Before you swear off doing some of your own projects or repairs, know that everyone starts somewhere. Take a class at your local home improvement store, invest is a handyman's guide, or ask a friend that has already tiled their bathroom or fixed a leaky sink to come and give you some pointers.
Be prepared for repairs, maintenance, and updates. Even with a new home, there will be projects. Plan accordingly financially. And if all else fails, hire a professional.
What if I need to move?
Experts recommends that to build equity, you need to have owned your home for at least 3 to 5 years. The NAR recommends, "Look at your annual mortgage statement or call your lender to find out. Usually, you don't build up much equity in the first few years of your mortgage, as monthly payments are mostly interest, but if you've owned your home for five or more years, you may have significant, unrealized gains." If the time is less than five years, then you should be prepared to not make any money on the sale of your home, and even, to "lose" some -- in the form of closing costs.
Article Published on Realty Times
Written by Carla L. Davis
Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com
Monday, May 3, 2010
Five Key Areas to Pay Attention to When Buying a Home
Looking for a new home can be exciting and frustrating. You can help alleviate the frustration by paying close attention to five key areas of the homes you're considering buying; it may save you money in the long run.
Don Walker is an inspector and owner of Ace Home Inspections. He says there are five areas in homes that he frequently reports problems with. They are electrical, foundation, plumbing, the attic, and landscaping.
Electrical
Walker says sometimes homeowners assume with newer homes that all will work just fine but that's often not the case. "I inspected a brand new house—four years old but the electrical was all done incorrectly," says Walker.
Having a complete home inspection will help to rule out any problems and point out any areas of concern. However, even as you're browsing homes, buyers can start to make note of the key areas that Walker mentioned, such as the foundation.
Foundation
Walker says a four-year-old home he inspected recently was already showing trouble signs which could result in a costly repair project. "It was a model home. What the homeowners did was plant trees for shade to make it look really nice, but they planted the wrong trees and they're going to crack the foundation and it's going to cut the property value down by $50,000," says Walker.
Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. "As you walk through the house, 21 feet in and 30 feet deep, there's just too much root invasion and it's going to ruin their tile," explains Walker.
He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, "which means the foundation is moving."
However, just because you see cracks doesn't mean there is a foundation problem. "Most people don't understand that there are natural cracks in a house. That's why when we do an inspection report we have to look at it and say 'Okay, this is a typical crack and this one is an untypical crack,'" says Walker. He says some cracks may lead to other problems while others won't.
Plumbing
Walker says another big area of concern is the plumbing. It's an area that you can't always spot as easily but it can create expensive repairs if plumbing issues go either undetected or are not properly fixed. "Mold forms underneath sinks when people have a leak and they fix the pipe but they don't take care of the mold," says Walker.
He says things like caulking the sink can help prevent mold. "That's my number one thing I always find—bad sinks," says Walker.
He says that when you look at the sink, look behind it and most of the time you will discover a little crack. "What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it's in a perfect position to create mold," says Walker. The dampness, humidity, and lack of light can turn that area beneath the sink into a mold-breeding ground.
Attic
"You can tell everything about the house by the attic," says Walker. He says other areas of the home can be covered up if a repair had occurred. For instance, if there was a leak and it damaged a wall, with the right contractors and repairs it can be made to look like new and, hopefully, function like new. But Walker says the attic is sort of the eyes to the soul of the home. "In the attic you can tell where all the damage has been," says Walker.
"If you're in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced," says Walker. He adds, "You can tell if the roof is good because you can look right at the wood."
Landscaping
"There should not be moisture or plants next to your house," says Walker. He says there should be a 12 inch barrier between the landscape and the house. Walker says otherwise you run the risk of having the foundation crack and affect the home. What happens is, as the landscape that is too close to the home is watered, the foundation and soil expand. Then, when no watering occurs, the foundation dries up and shrinks and this can cause it to crack.
Remember, knowledge is power, so learning about the home before you close the deal on it will keep you from making a mistake that may cost you extra out-of-pocket money later.
This article was published in Realty Times
Written by: Carla Davis
Thinking about Buying or Selling?
Call Alvin's Team Today! 800-666-4718
Or Visit our Website: www.LivingLakeTahoe.com
Don Walker is an inspector and owner of Ace Home Inspections. He says there are five areas in homes that he frequently reports problems with. They are electrical, foundation, plumbing, the attic, and landscaping.
Electrical
Walker says sometimes homeowners assume with newer homes that all will work just fine but that's often not the case. "I inspected a brand new house—four years old but the electrical was all done incorrectly," says Walker.
Having a complete home inspection will help to rule out any problems and point out any areas of concern. However, even as you're browsing homes, buyers can start to make note of the key areas that Walker mentioned, such as the foundation.
Foundation
Walker says a four-year-old home he inspected recently was already showing trouble signs which could result in a costly repair project. "It was a model home. What the homeowners did was plant trees for shade to make it look really nice, but they planted the wrong trees and they're going to crack the foundation and it's going to cut the property value down by $50,000," says Walker.
Walker says in the case of that home, the trees were causing micro-fractures in the tile in various locations of the home. "As you walk through the house, 21 feet in and 30 feet deep, there's just too much root invasion and it's going to ruin their tile," explains Walker.
He says some tell-tale signs with this home were the minor cracks in the foundation that were causing a lifting and separation of the foundation. Also, the windows were not opening and closing properly, "which means the foundation is moving."
However, just because you see cracks doesn't mean there is a foundation problem. "Most people don't understand that there are natural cracks in a house. That's why when we do an inspection report we have to look at it and say 'Okay, this is a typical crack and this one is an untypical crack,'" says Walker. He says some cracks may lead to other problems while others won't.
Plumbing
Walker says another big area of concern is the plumbing. It's an area that you can't always spot as easily but it can create expensive repairs if plumbing issues go either undetected or are not properly fixed. "Mold forms underneath sinks when people have a leak and they fix the pipe but they don't take care of the mold," says Walker.
He says things like caulking the sink can help prevent mold. "That's my number one thing I always find—bad sinks," says Walker.
He says that when you look at the sink, look behind it and most of the time you will discover a little crack. "What happens is, when you wash dishes or you wash your hands in the bathroom or the kitchen, the water gets in that crack and seeps down. Once the water gets behind the cabinet it's in a perfect position to create mold," says Walker. The dampness, humidity, and lack of light can turn that area beneath the sink into a mold-breeding ground.
Attic
"You can tell everything about the house by the attic," says Walker. He says other areas of the home can be covered up if a repair had occurred. For instance, if there was a leak and it damaged a wall, with the right contractors and repairs it can be made to look like new and, hopefully, function like new. But Walker says the attic is sort of the eyes to the soul of the home. "In the attic you can tell where all the damage has been," says Walker.
"If you're in a 20-year-old house and you see that the insulation is brand new, you know that there was a water leak because it had to be replaced," says Walker. He adds, "You can tell if the roof is good because you can look right at the wood."
Landscaping
"There should not be moisture or plants next to your house," says Walker. He says there should be a 12 inch barrier between the landscape and the house. Walker says otherwise you run the risk of having the foundation crack and affect the home. What happens is, as the landscape that is too close to the home is watered, the foundation and soil expand. Then, when no watering occurs, the foundation dries up and shrinks and this can cause it to crack.
Remember, knowledge is power, so learning about the home before you close the deal on it will keep you from making a mistake that may cost you extra out-of-pocket money later.
This article was published in Realty Times
Written by: Carla Davis
Thinking about Buying or Selling?
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