What to expect when you’re INSPEC ING

Tips on how to handle common property issues

Should you get a home inspection before you buy a house? Definitely. In fact, most real estate agents recommend making your offer to purchase contingent on home inspection, right up there with appraisal and financing approval.

❚ If your home inspector gives the property two thumbs up, great! But what if your dream home turns out to be in less than tip-top shape? Do you walk away from the deal with your earnest money intact ... or might it be worth hanging in there and solving the issues?

❚ Keep in mind: Any substantial problems can be used as a bargaining chip to renegotiate price. Or, the real estate seller may shoulder the burden of getting them repaired.

❚ Here are 7 of the most common home inspection problems, and the average cost to fix each one.

1. Outdated and/or dangerous wiring

Faulty wiring tops the list of problematic (not to mention dangerous) home inspection findings. If your inspector finds: A) the electrical power is supplied by an out-of-date system such as knob-andtube wiring or B) there are indications of dangerous wires, you might need to hire an electrician to rewire the whole house, a major undertaking. When you just have to replace a few outlets – for example substituting GFI outlet receptacles for the standard variety – the fix will require much less time and money. Average:

❚ Cost to rewire entire house (1200 sq ft): $5,750

❚ Cost to upgrade electrical panel from 60 to 200 amps: $2,150

❚ Cost to professionally install a GFI outlet: $50-100 per hour, plus parts

2. Roof damage

A damaged or aging roof may have blown-off, curling or brittle shingles. Its flashings might be cracked or is missing. Either of these situations is a red flag for future roof leaks (if there is not an active leak already), which in turn eventually result in water damage to the home’s interior.

Average:

❚ Cost to repair a roof: $845

3. Foundation warning signs

A house foundation in trouble shows distinct warning signs, which only get worse if left unattended. Your home inspector can interpret whether these signals mean, “Beware!” (diagonal cracking, crumbling mortar, bulging walls, sinking) or “This is something you might want to cope with” (vertical crack less than

wide, puddles adjacent to the foundation).

For an expert second opinion, consider a consultation with a professional engineer.

Average:

❚ Cost to hire a structural engineer: $490

❚ Cost to cracks: $500

❚ Cost of major foundation work: potentially $10,000+

4. Plumbing malfunctions

How might home plumbing go wrong? Let me count the ways. They often start small and turn into a huge headache (and strain on your wallet) over time. Dripping faucets, clogged drains, overly high or low water pressure, a damaged washing machine hose, and any sort of plumbing leak will have to be fixed to make the house truly habitable.

Average:

❚ Cost to fix plumbing problems: $315 per visit, or $122 per hour for multiple repairs

❚ Cost to replace a water heater: $1,150 5. HVAC hassles

HVAC systems are also subject to a large number of troubles, which range from uncomfortable to downright dangerous. A few common examples are: malfunctioning thermostat, heating or cooling running constantly, noisy system, furnace pilot light that goes out continually, and cracked heat exchanger or chimney liner causing carbon monoxide leakage. Average:

❚ Cost to repair heat exchanger: $150

❚ Cost to repair a furnace: $285

❚ Cost to repair air conditioning: $355 ❚ Cost to replace chimney flue liner: $2,500

6. Inefficient ventilation

Poor ventilation (such as a vent hood that merely removes kitchen odors and doesn’t vent steam outside) raises the indoor repair minor foundation relative humidity level. This leads to condensation on windows, and eventually fungi and molds throughout the house. Combined with uber-enthusiastic insulation (seller’s DIY project, perhaps?), it also makes the attic overly hot, which is both energy-INefficient and very hard on the roof.

Average:

❚ Cost to install/replace kitchen bathroom ventilation Fan: $385

❚ Cost to add roof vents: $475

❚ Cost to install heat recovery ventilation system: $2,050

Learn more about the home inspection process

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1. What’s the cost of a home inspection?

Average cost for home inspection is approximately $325. This typically includes the home inspector’s onsite investigation, plus a written report with documenting photographs.

Tip: Resist the temptation to save on real estate closing costs by skipping the inspection process. If you are considering the purchase of a $325,000 home, the price of inspection amounts to only onetenth of a percent ... and it is worth every penny to ensure that you are making a wise investment.

Besides, many mortgage lenders require an inspection before they will release funds.

2. Who should pay for a home inspection?

Buyers (not sellers) cover the cost of homes inspectors hired to fulfill a contingency clause.

Caveat: When you sign a home purchase agreement, try to include an inspection contingency. This lets you off the hook if the inspector finds something seriously wrong with your dream house.

3. How long will an inspection take?

Two-three hours, depending on size of the home.

4. May I, as the buyer, be present at the inspection?

Yes. In fact, you should, because the home inspector will point out problems to you and give expert recommendations regarding necessary repairs. If your real estate agent is also present, that’s even better because he or she can discuss the findings with you and give an informed opinion.

5. Does a home inspection cover every potential issue?

No, you may want to commission additional inspections for specialized issues, which might include plumbing inspection; sewer scope; roof inspection; or testing for mold, lead paint, asbestos, or radon. Cost of these home inspection add-ons ranges from about $100-$800.

6. What advice do professional homes inspectors offer regarding a less-than stellar inspection report?

No home is perfect, according to the American Society of Home Inspectors. ASHI explains that problems identified by the inspector should not be the deciding factor as to whether you should purchase the house, but simply advance notice of what you can expect.

7. When is it worth fixing problems found by a home inspector?

If the house is reasonably priced for its location, if it offers many (or all) of the features you prize most, and/or if you are buying in a hot seller’s market, weigh the cost of repairs against the hassle of starting your home search all over again. the