Inspections - "Kicking the Tires"

So you've decided to purchase a house, you may be asking, "How am I to know what I'm buying?"
The answer lies in the inspections. This is an important consumer protection provided to the buyer of Real Estate which allows the buyer time to kick the tires and check under the hood, so to speak.
Buyer's Inspections are a very important of the Home Buying process, and by default they matter a lot to the seller as well. Any contract has a 17 day period for buyer's investigations (or longer if you change the timeframe). During this time it is the duty of the seller to provide the buyer with all Statutory Disclosures required by law and the Buyer should conduct any and all inspections that they deem necessary. These inspections include, but are not limited to:

• Wood Destroying Pest Inspection, an inspection that investigates the whether the structure has current infestation of wood destroying organisms such as: termites, fungus, dry rot, wood boring beetles, etc (called section I); conditions that may lead to infestation(s) (called section II); recommendations for conditons to be inspected and repaired by other trades people (i.e. roofers) and informational notes about the current condtion of the house, such as plumbing existing over finished drywall or freshly painted surfaces.This inspection will also have a diagram denoting the location of each condition and a corresponding number based on what type of problem is present. These Numbers will also have a bid to fix the condition.



• A Home Inspection, that investigates the Systems of the Home: Plumbing, electrical, etc. It also has information regarding the health and safety of the home.



• A Roof Inspection, examines the roof and will make suggestions and cost of repairs to guarantee the water tightness of the roof for 3 more years.



• Investigations of local building codes, can you build, subdivide or add a mother-in-law?



• Neighborhood makeup - do you like the neighborhood?



• Personal factors - are you getting a divorce, having another child, getting married and if so, will this house work for you?



• Review of the disclosures - is there something that has been disclosed that you can't live with? Has someone died in the last 3 years in the house?



• Square footage - is the home the correct square footage?



• ETC.

You get the idea...
If you discover some adverse condition during this time period, the buyer may also make a request for repairs or other corrective action (including but not limited to a credit from the seller to the buyer or a new negotiation of the price). This request should be given to the seller before the 17 day inspection timeframe is up. A buyer may also cancel the contract as a result of the information discovered or disclosed during these inspections. The seller is bound by the contract to return your earnest money deposit.
Once a Buyer is satisfied with their inspections or has negotiated with the seller for repairs, they would release their investigation contingency. When the inspection contingency has been released, default on the part of the buyer will result in the loss of the buyer's earnest money deposit.
The most important inspection (at least with residential real estate) is the Wood Destroying Pest Inspection. They are so important that Completed Pest Inspections are filed with the Pest Control Board and can be searched for on the pest control board website . For a small fee, a buyer can obtain a copy of a past Pest Inspection.
For my money the best Inspector in our area is Mike Strickland, not only is he a nice guy, but he's a straight shooter, which I like an appreciate.


When Listing a Home, I ask the seller to get a Pest Inspection up front. Why should a seller do this? It's because a seller can price the home correctly if there is Pest work that needs to be completed. You can also usually avoid a secondary negotiation after the inspection timeframe. The Buyer won't come back on the seller to ask for a credit for the work that they already knew about.


Even if a home is purchased as-is, inspections should be performed. You want to know what as-is, is!
Looking to buy?
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Selling a Home in Humboldt County

I know that a lot of people out there are concerned about the Real Estate Market in Humboldt County and indeed all over the Country. This is what can be considered a "Normal Market" because historically, appreciation is not as dramatic as the last few years have shown. It takes longer to sell a home and the seller should be willing to negotiate on the price point.

Everyone can worry that Home Prices are falling (except First Time Home Buyers), but there might come a time when you will have to sell your home in just such a market. You may have another child, or a Parent may come to live with you. A parent or loved one might pass away or you get a job transfer, these are all reasons clients buy and sell homes: basically, LIFE happens. John Lennon had a great quote in one of his songs: "Life is what happens to you while your busy making other plans."
If life does happen, never fear! The following is a guide that will help you when selling a home in any market.
The most important factor in selling a home is Pricing, so the first step should be to contact your real estate professional (me perhaps?). When a Realtor gives you a Market Analysis the A seller should always look at are the comparable properties (comps). The comps that have been selected are usually a good indication of what the market will bear for a seller. The questions you should ask yourself are as follows:

Are the comps in the same or similar area?
- They are useless if they are from a different area/town

When did they sell?
- If they are any older than 6 months, they are too old! The Market is constantly changing and just because your neighbor got $400,000 last year doesn't mean you will.

Are they truly "Comparable"?
- Do the Comps that are being used had the same number of bedrooms, bathrooms, etc? Do they have the same amenities? If they aren't they need to be adjusted. Comps with superior features require are adjusted down in price, while comps with inferior qualities are given value.

Some homes and properties are truly incomparable, they are just so unique that a different valuation methods must be used. In these situations one might consider an appraiser to assess the value of the subject property.

People are always buying and selling regardless of market conditions, but what will set your house apart from other homes on the markets and hook that buyer? Here are some other things to consider:

First Impressions Are Lasting
The first impression (curb appeal) is vital. Your lawn should be trimmed, walkways swept, the front door clean with a doorbell that works.

Decorating For A Quicker Sale
A minor investment in paint and time could pay you dividends in the form of a better price and a quicker sale. It might just be an accent wall, but try to keep the color neutral. If necessary, call a friend with style to have them help you pick out a color or consult your Realtor.

Let The Sun Shine In!
Open the drapes and curtains. Clean the windows so that a prospect can see how bright and cheerful your house is. Dark and dreary rooms do not appeal to most home-buyers.

Don’t Be A Drip
Fix leaky faucets: dripping water suggests faulty or worn-out plumbing (major repair bills). Discolored, rust-stained sinks are also warning signs; they should be properly cleaned and sparkling. My broker would go even one step further and dry all water spots in the sink prior to any showing.

Little Things Mean A Lot.
Loose doorknobs or cabinet pulls, sticking doors and drawers, wobbly hinges, stuck windows – all are negative factors. Take a few minutes to check and repair all these seemingly minor flaws.

Safety First
Keep stairways and corridors clear. Clutter is unattractive and causes accidents.

Top To Bottom
Let prospects see the full value of your storage areas – attics, garages and closets by removing junk and cartons. If you also have an excessive amount of furniture, remove it to make the home appear spacious. Rent a short-term storage unit if necessary.

Clean out the clutter
I do it, you do it, everyone (well, almost everyone) does it, we have areas of clutter. We have areas of our homes that accumulate clutter, places that you dump the toys, magazines, bills, mailing and other items. My suggestion is to box up all those unused clutter items and either store them in the garage or in a storage unit. Have your Realtor or a trusted friend stop by to look at your home, they can point out areas that need to be cleaned up.

Picture this
Take down as many personal photos as you can. Depersonalizing your home is a good way to help Buyers mentally move in.

Bathroom Sell Homes
Make bathrooms sparkle. Clean stained sinks and bowls, repair any damaged or discolored caulking around bathtubs and showers.

Tips when Showing...

Avoid Crowds
Potential buyers will feel like intruders and want to hurry through your home if there are too many people around so take a hike! Send the kids over to the neighbors – take a walk while your house is being shown.

Can You See The Light?
When you turn your lights on in your home, it is a “welcome” sign for every prospect. Turn on all the exterior and interior lights including accent & picture lights.

Silence Is Golden
When showing your house, turn down, or off, radios or television sets. Let the buyers talk freely without having to yell over any noise.

Put Fido Outside
Dog is man’s best friend, but not when showing your house. Keep pets out of the way; not underfoot.

This Is Not A Social Call
Be courteous and friendly, but don’t force conversation with potential buyers. They’re there to inspect your house, not to be social. Let the Realtor do the talking. Remember, the best thing to do is leave the home.

Nor Is It A Garage Sale
Don’t try to sell the potential buyers any of the furniture or furnishings that you don’t want to take with you. They haven’t bought your house yet, and you could ruin the sale. Remember, again, leave the house unless it is not possible.

Trust Azalea Realty To Do It Right
Let your professional Realtor talk to the customer about selling price, terms, possession date and other factors. They have been specially trained and have the experience necessary to bring the negotiations to a satisfactory conclusion.

When the offer comes in it's hard to not to hope for the best, but sometimes the offer is less than what you'd hoped for. It might even be worse: a "low-ball" offer! Sellers will often be insulted by a low ball offer, but this should be viewed as a business transaction. When an offer is less than you'd hoped, you should always Counter offer. Many times the buyer is just trying to see how low you'll go, but fret not! Counter back at terms that are acceptable to you. If that Buyer dries up, there are always more buyers in every market. Always remember this: You are only looking for ONE BUYER! Good Luck selling your home and if you'd like to talk, feel free to call me at 707-616-3456 or email me at andy@azalearealty.com . Happy New Year!