July 1, 2008

Today’s Real Estate

It’s not a good time to scrimp

By Donna Nardi
Special to the Times

With the dismal economic climate, consumers are trying to save money wherever possible, and rightly so. But there are times when saving money can actually result in just the opposite – a high cost. There’s a saying, “the cheap comes out expensive.” It’s up to us to know when we should protect ourselves against monetary losses which may be disguised as a way to save money.

When purchasing a home, it may be tempting to “save” money by precluding a professional home inspection. While a termite/pest inspection may be relatively inexpensive, the home inspection is much more involved and more costly. A home inspection looks at very important features of the home. How solid is the foundation? Is the plumbing outdated and close to failing? Maybe understanding what constitutes a quality inspection will help to shed light on the higher cost.

Alice and Reggie had finally found their dream home, but since money was tight, they decided to bypass the “expensive” home inspection. After all, the seller was purchasing a one-year home warranty for them, right?

The seller had installed a doggie-door in the exterior wall of the home, including the wall framing, which weakened the structure. A few months after moving into their dream home, the area around the doggie-door began to collapse. Alice and Reggie called their trusty home warranty company. However, the warranty didn’t cover such damage, and the new homeowners had a higher repair cost than the inspection. This can be an expensive lesson.

I spoke to Barry Saugen, with Barry Saugen Inspections. He has more than 4,500 inspections under his belt and is a member of the National Association of Certified Home Inspections (NACHI).

“A home inspection will interpret the visual areas of the home into a story, including pictures. The narrative should point out not only the negative conditions, but the positive ones. After all, most homes have more positive features than negative, and we want the buyer to be reassured the home is sound. The inspection usually has lasts about two to three hours.”

Generally the following areas will be the main points of inspection:

- Roof
- exterior walls
- electrical systems
- heating/air conditioning
- structural components in crawl space and attic
- garage
- plumbing system, including water flow, and toilets
- interior portion of home, including appliance functionality

In today’s buyers’ housing market, one way to make your home stand out from the others would be to have the home in tip-top shape. Start with an inspection prior to listing the property. You then have the luxury of getting competitive bids for required repairs, which can save a lot of money.

Once there are interested buyers, repair receipts can be shown to potential buyers to prove the home is free and clear of problems. This can very well result in attracting serious buyers, as they are assured they’re buying a quality home in good condition. Your realtor can include this in the marketing comments.

It’s important to choose a licensed inspector who has good references, reputation and plenty of experience. Belonging to industry associations can also be a good indicator.

Ask your friends, neighbors and your realtor to recommend an inspector. It’s very important for the interested parties to be present to best understand the inspection, physically see the issues and ask the inspector questions – all to truly ascertain the property’s true condition. Some issues may appear to be “show-stoppers,” but when explained, can actually be merely a cautionary.

Saugen also recommends periodic maintenance inspections every other year to keep your home in ultimate condition, which will also help maintain your home’s value. By heading off a danger area, a homeowner can avoid a more costly repair later on. A home is so complex, including in areas not visible, it’s best to stay current with its condition. A good inspector will educate you and show you important areas to help you save money.

After the inspection itself, the written report will be delivered to the homeowner within a few days. Contrary to a termite inspection, the inspector does not quote or complete the actual repairs, which helps maintain objectivity.

Donna Nardi is a Realtor, Accredited Staging Professional, and Senior Real Estate Specialist with Prudential California Realty in Willow Glen. You may reach her at (408) 918-4410, or donna.nardi@prurealty.com, or www.HappyWayHome.com.