Guest Post - Top Home Inspection Tips for Home Buyers

Because not all US states or Canadian provinces require sellers to reveal problems with their property to potential buyers, you have to protect yourself and your investment when buying a home. Often, the best way to do so is with a professional home inspection.

Here, we hope to answer these questions and provide you with the most important things to consider when getting a home inspection.

1. New or old—every home should be inspected.

Often, people believe that new construction homes don’t need to be inspected. After all, they are brand new—what could go wrong? Well, believe it or not, plenty!

First of all, just because your builder says that the home has already been inspected by the city and has passed code, does not mean that it has no problems. It simply means that the types of problems you’ll find in a newer construction will be different from those in older buildings.

The most common issues are often the result of carelessness, cheap substitutions or shortcuts taken by the builder or contractor. Improper building techniques and installation defects with mechanical, plumbing, and electrical systems could result in major damage to your new home. Here are a few examples:

Faulty Windows

Poor installation of windows almost always leads to leaks, water damage and mold. Not to mention the costs, both financial and emotional, to you and your family.

Improperly installed windows often lead to moisture intrusion and black mold.

HVAC problems

Because today’s new constructions are designed to be so airtight, they need powerful ventilation and exhaust systems in order to maintain healthy indoor air quality and eliminate indoor odours.

Unfortunately, many times, exhaust fans are not doing their job, either because they were improperly installed or they had the wrong circuit breakers or they were mistakenly covered up by siding. The list of potential problems goes on and on…

Improperly installed wooden flooring

If you’re putting in natural wood floors, your builder should know that wood expands and contracts over time and in different temperatures. As such, it must first be acclimated to the building site before being installed. If this is not done, gaps can develop, leading to moisture intrusion, flooding, mold and big headaches.

2. Cheaper isn’t always better.

Buying a home is a big expense as it is, so it’s understandable why you may be reluctant to dish out for any additional expenses, even a home inspection. However, a home inspection is not something you should try to save money on.

You want a qualified and experienced person who will be thorough and examine every room, every system and every element of your new home to ensure that everything is safe, durable and up to code. Sometimes the most insignificant of things (like peeling paint) can be a sign of much bigger problems (issues with heating and cooling systems, missing vapour barrier, mold behind walls, etc.).

There are so many home inspectors these days and they differ in a lot of ways, from their level of training and experience to what they offer their clients. Before you hire anyone, here are some questions to ask:

1. What professional affiliations and certifications do they have? Do they belong to a nationally recognized association?

2. What kinds of tools and diagnostic equipment do they use (e.g. moisture metres, particle counters)?

3. Is an official report included in the home inspection? If so, is it written or electronic? Does it contain photos of the property and appliances?

4. Is anything not included in the inspection (e.g. mold tests, infrared scans, indoor air quality tests)?

If you’re hesitant about just Googling a professional home inspector, but you’re not sure how to find one, word of mouth is often a great method to find reputable and local professionals. Ask friends, family or co-workers. Someone is bound to have experiences to share—good or bad—which can help you make your decision.

3. Be there during the home inspection

Although most home inspectors will provide a full written report upon completion of the home inspection, being there during the inspection process gives you a fantastic opportunity to ask questions and address any concerns you have face to face with a professional.

It also allows you to understand how important certain issues are in comparison to others. This kind of information you wouldn’t be able to get just by reading a report.

What’s in your best interest?

It’s important to remember that hiring a home inspector is not just another way for the real estate industry to squeeze an extra $300-$500 out of your wallet. It’s actually in your best interest.

A home inspector is on your side, protecting you from potential defects that could quite literally sink you financially.

It’s also important to realize that a home inspector’s opinion is not biased, meaning their income does not depend on the sale of the property or how many issues they find. Their priority is to be as thorough as possible and provide the best service possible because this increases their chances of getting more clients via referrals.

So before signing anything, be sure to make a home inspection a necessary condition in your offer to purchase.

AUTHOR BIO

John Ward is an account executive at Mold Busters Ottawa, specializing in indoor air quality issues of the most delicate nature. Over the years, he has completed hundreds of mold remediation jobs and thousands of air quality tests for homeowners and businesses across Ontario and Quebec.

Attention Sellers! Buyers Want to See These 4 Features in Your Home

The features that buyers are looking for seems to change all the time. It feels like yesterday that everyone sought open floor plans, but since COVID ravaged the nation, rooms with doors are all the rage! Wanting privacy is totally understandable after being stuck in the house for months on end. 

It’s pretty safe to say that once things return to normal (whatever that may look like), buyers are going to be interested in different features and amenities. However, here are 4 features that buyers want to see, no matter what the homebuyer and seller trends may be.

1. Dedicated laundry room

If you’re like other people, laundry is probably on the list of chores we hate doing - especially if you have to go to a laundromat or your washer and dryer is in the kitchen! Homebuyers want a dedicated room where they can sort clothes, pre-wash, fold and iron their clothes without taking up space in other areas of the house. 

2. Outdoor living spaces

Who doesn’t love a bit of fresh air? Buyers certainly do! Spacious, well manicured yards are desirable for many buyers, especially those who are moving out of an apartment, condo, or even the city. Along with a spacious yard, buyers want outdoor space where they can entertain guests. This could be in the form of a patio, deck, or a pool area. 

It’s worth noting that the exterior of the home is the first thing people see when they’re interested in a house. If you’re a seller, curb appeal is going to be a big factor in whether or not potential buyers will want to see the interior!

3. Garages or basements for extra storage

Americans have a lot of stuff. We mean a lot. There’s anywhere between 45,000 to 60,000 storage units across the nation and it’s a $3.9 billion business! So, while storage units may be the ideal place to store your junk, buyers want even more space in their homes. A garage, for example, is the perfect place to store all of your outdoor equipment, tools, bikes and the like (does anyone actually park their cars inside the garage??). A basement can be used to tuck away Christmas decor and out-of-season clothing, but it can also double the home’s living space if it’s finished. 

4. Energy efficiencies

Although energy efficiencies in a home helps the environment by reducing emissions produced by power plants, it’s not the reason why people want them. Energy efficient appliances, insulation and windows can reduce the cost of heating and cooling, as well as energy consumption, thus slashing the electric bill. 

If you’re going to list your property and have energy efficient appliances and the like, it would be in your best interest to play up these money-saving features! 

Home trends change but somethings will always be the same

As a seller, it’s important to remember that everyone has their own requirements that they’re looking for when house hunting. You may have initially bought your house because of the open floor plan, the antique windows and doors and the yard devoid of greenery. However, today’s buyers probably aren’t going to show much interest. 

Buying a house is a huge investment, so it’s understandable that buyers aren’t always willing to settle for anything less than what they want. However, if you are willing to shell out some money to put some things that buyers are looking for in a home, you may be surprised by how many more people show interest in your home.

Guest Post - 6 Things First-Time Homeowners Learn After Purchasing a House

Nothing screams American Dream quite like buying a home. Reaching this milestone achievement is well worth patting yourself on the back for, but don’t forget to tie up all the inevitable loose ends that come after sealing the deal. Being a new homeowner is an exciting new experience that’s equally daunting if you’re equipped with the right information to make the transition into your new home a seamless one.

While there are plenty of positive surprises that come along with homeownership, it pays to be prepared for those that are costly or vital to the upkeep of your home. We’re here to provide you with 6 lessons every first-time homeowner will learn soon after buying a house and prepare you for this thrilling foray into your next step of life.

Lesson #1: There are plenty of additional hidden costs after closing on your home

Believe it or not, beyond your mortgage exists another world of satellite costs. These often forgotten costs can create an intimidatingly large sum of money that you’ll want to be prepared for shortly after closing on your home. Expect to set aside some extra cash to cover the following post-closing expenses, including:

• Property taxes: Though property taxes will fluctuate from state to state and even more granularly by country, city, and home, odds are likely that the total cost of your property taxes will take up the largest chunk of your hidden expenses.

• Homeowners insurance: According to PolicyGenius, the average annual homeowner’s insurance premium totals to about $1,200. Rates will vary by state and by home.

• Utilities: Your utility bill will include the costs incurred from gas, water, electricity, and internet usage. A Nationwide study found that the typical American household will spend $2,060 per year on utilities.

• Closing costs: Closing costs can amount to anywhere between 2%-5% of the entire cost of the home. Don’t be caught off guard when these ancillary fees need payment:

• Attorney’s fees

• Title insurance

• Recording fees

• Credit report fee

• Appraisal fee

• Wire transfer fee

• Document prep fee

Lesson #2: Your home inspection will only tell you so much

After your offer on the house of your dream is accepted, you’ll be required to pay for a home inspection. The goal of this inspection is to examine the property’s condition, but few know that the results you may find aren’t indicative of the full story but the results will only tell you so much.

Not all inspections test for important home dangers like radon, mold or pests, so you’ll want to be fully aware of what exactly your inspection will include. Ahead of the inspection, make sure the inspector has full access to every nook and cranny inside of your home including all crawl spaces. Be sure to be present during the inspection and pay close attention to any red flags the inspector may call out.

Pro-tip: Don’t be afraid to ask your inspector questions or to request that they take a closer look at something.

Lesson #3: Invest in your safety

In the event of a flood, fire, burglary, or other types of surprise emergencies, it pays to invest in your safety. This means ensuring your smoke and carbon monoxide detectors are working, having a fire extinguisher readily accessible, and an emergency kit in an easy-to-reach location. 

If you’re looking to create your own emergency safety kit, start with this comprehensive checklist

• 3-day supply of non-perishable food

• One gallon of water per person per day

• A hand-crank radio

• A first-aid kit

• Flashlight

• Batteries

• A manual can opener

• Pain relief medications

• Cash, preferably in small bills

• Matches

• Local maps

• Garbage bags

Lesson #4: You’ll need to set up your new address

Settling into your new home doesn’t mean falling off the grid (unless you want it to!), so you’ll need to make sure your new address is made official. Notify your friends and family, your employer’s HR representative, and your creditors. Ultimately, you want to make sure you receive your mail, and that means taking the time to let everyone know where you’ve recently replanted. 

Don’t forget to inform the U.S. Post Office, too! Setting up mail forwarding from your old home to your new home is incredibly simple and an essential step to make sure you don’t miss any snail-mail correspondence.

Lesson #5: Emergency savings are a must

Now that you’ve gone through all of the trouble of purchasing a home, setting up a separate savings account for emergencies is a great way to offer yourself some peace of mind. While nobody wants the worst to happen, it’s better for your wallet and your mind to plan for the worst—should anything happen down the road, you’ll have enough funds to cover the associated costs. We recommend putting away at least 1% of your paycheck each month you can, so you’re not in trouble if problems do pop up.

Lesson #6: Crafting a maintenance plan is important

Much like you, your house ages another year older every 12 months. Staying on top of your home’s many maintenance needs is a key piece to the puzzle of new homeownership. Among the long laundry list of things to keep in tip-top shape, here are just a few seasonal maintenance tasks that will help your home age like fine wine:

Spring

• Inspect your HVAC system.

• Remove any lint buildup from the clothes dryer exhaust duct.

• Evaluate your roof shingles, flashing, and vents for damage. 

• Clean out the gutters and check for proper drainage.

• Inspect all exterior faucets for leaks or damage.

Summer

• Check the porch for deterioration and water damage.

• Trim or remove damaged shrubbery and trees in close proximity to your home.

• Inspect the foundation and crawlspace of your home for cracks.

• Ensure your exterior HVAC system is well positioned away from free of growing weeds or grass.

• Examine exterior siding for damage.

Fall

• Shield your air-conditioning unit from rain, snow, and freeze with a waterproof cover.

• Clean out the gutters.

• Do a deep clean of all major kitchen appliances (i.e. oven, stove, microwave, and refrigerator).

• Hire a professional chimney sweep to inspect and clean flues and vents.

• Winterize your garden by bringing sensitive plants inside.

Winter

• Inspect the roof, gutters, and downspouts for any damage or debris after storms.

• Test your sump pump.

• Check your water heater for any leaks or pressure problems. 

• Turn off outside hose faucets to prevent freezing as temperatures cool off.

• Check the basement for any water leaks and repair as needed.

Author Bio

Samantha Rupp holds a Bachelor of Science in Business Administration. She is a contributing editor for 365businesstips.com as well as runs a personal blog, sjruppy.com. She lives in San Diego, California and enjoys spending time on the beach, reading up on current industry trends, and traveling.

Guest Post - Fixing Up a House

How to Find the Perfect Property to Renovate and Turn It into a Lucrative Asset

The idea of giving a run-down house a makeover just to sell it and make money off of it later on sounds appealing to many. Although house-flipping can be a lucrative business, finding and turning a fixer-upper into a lucrative asset ready for sale is no easy task.

Fortunately, there are some strategies experienced house-flippers use that can help make the process go much smoother. Here, five essential tips property investors should keep in mind when hunting for a perfect property they can fix and flip.

Look for a fixer-upper in the best street

When searching for the perfect property to invest in, many investors get so invested in the idea of the renovations they want to make that they tend to forget about the one factor that they can’t really change about the house they choose – location. Finding a fixer-upper in the best street is a strategy that many experienced investors rely on, and for a good reason. These properties are often ignored by a majority of investors, which translates to lower competition and better chances of purchasing the property in question.

As a rule of thumb, look for a home with “good bones”, and keep in mind all the major renovations (e.g. roof and windows) you’ll have to tackle before you can move on to finer details. That way, you’ll be able to eliminate the costly projects from the get-go and secure a property that is worth the effort. The more freedom and control you have, the higher the return on investment you can expect once you work your magic on your fixer-upper.

Work with experienced property investment experts

When you are still new in the real estate world, or any business for that matter, working with those who have experience and knowledge can surely make things a lot easier. This is why consulting specialists with extensive property investment know-how is always a good idea for novice property investors.

Since maximizing investment returns is the main goal here, you want to find a company that specializes in real estate investment services and whose experts you can work with closely and ensure your financial goals are met. From home design and finding the best mortgage deals to taxation advisory and selecting the right moment to sell, by leveraging their expertise and industry experience, these professionals will cater to your needs while helping you avoid costly rookie mistakes.

Know which projects increase the resale value most

Renovations can get quite costly depending on the work that needs to be done, and spending your hard-earned cash wisely should be one of your top priorities when renovating a fixer-upper. With a number of upgrades available, it might be difficult to decide which ones are going to bring the highest return on investment and which ones you are better off avoiding altogether.

Generally speaking, bathroom and kitchen remodels are wise investments with high ROI, and so are room conversions, given that the available space allows for them. The key is to invest in projects that boost the value of the property the most while avoiding splurging or skimping.

Consider your target buyers

Keeping in mind who you are renovating for pays off later on, which is why you want to take some time and do a little bit of research on the area where your property is located. This will give you a general idea of which renovations would be fitting for your target buyers and what they’re looking for.

For instance, your property might be located in a suburb where it pays to preserve the original features of a heritage home and play them up a bit, or it can be situated in a street where you will need to keep up and invest in more contemporary upgrades in order to appeal to buyer demand. Similarly, if your target buyers are families, your renovations will be more about utilizing the space cleverly and ensuring plenty of storage rather than investing in extravagant flooring and fancier features.

Determine your renovation budget

Now that you know which upgrades are worth the money and the best ways to appeal to your target market, it is time to get the renovation rolling. But before you can actually roll up your sleeves and start putting your renovation plan into action, you have to consider a major factor – your renovation budget.

While selecting a house with good bones that doesn’t require any major works (e.g. rewiring, fixing the roof) is a great place to start, you will need to consider all the renovation expenses which you will have to work into your budget. A good approach would be to estimate the house value after all the renovation work. Then, take away the approximate renovation expenses and the original price you paid for the property. What is left is how much you will make, and generally, you should be looking at a 10-20% profit.

Spotting rough diamonds to fix and flip can be a tricky job mainly because not everyone can recognize the potential that comes with a property in shambles. However, if you manage to learn the basics of property investment and train your eye enough to deduce which properties are worth the investment and renovation hassle, you will set yourself up for success in the real estate business.

About the author: Mike Johnston is an avid freelance writer and blogger. He’s a regular contributor to numerous blogs and online magazines, where he writes about home improvement (his specialty!), interior design, real estate, family life, green living and many other topics. Mike’s goal is to create interesting and compelling content and then share it throughout the online community.