Real Estate Investing

Painfully, I’m working with two buyers and we’re currently experiencing four of these Top 10 Finds from a Home Inspection That Can Kill a Sale … in two inspection!

1. Seller has not told the truth on a property condition disclosure form regarding the age of major systems (electrical, plumbing, roof, etc.
2. Heat / Air unit not functioning and seller refuses to repair or replace.
3. Mold found in moist crawlspace or basement.
4. Electric system antiquated or non-functional.
5. Water found in moist crawlspace or basement.
6. Roof pelted with hail and crunchy requiring new roof within two years.
7. Old plumbing encrusted inside restricting water flow so much that when shower is on, no other faucets work.
8. Gigantic tree has massively sized dead limbs hanging over house and seller won’t remove.
9. Broken window panes required to be fixed to get FHA loan.
10. Termites found under home that have caused extensive damage to supports and pillars.

Sometimes a seller gets to the financial point where they absolutely can not afford to make the repairs - especially when several costly repairs hit at once.  However, homeowners should try to be aware of their home during the tenure of the time they live there and address problems as they occur.  This is much easier said than done.  For example, my husband and I are completely aware of the fact that we’re going to have to replace the water line from the road to our home because old materials were used that have been found to deteriorate within 10-15 years.  I think I’ll do some research to find the class action suit on this issue!

Perhaps the most important thing both a buyer and seller can take with them is the importance of a home inspection.  Sellers CAN have their homes pre-inspected before they list and make repairs in advance of the home hitting the market.  Most sellers do not.  That’s why it’s even more important for buyers to find an unbiased, licensed home inspector. 

Call the Better Business Bureau.  Get referrals from friends.  Ask your agent to recommend an inspector (and don’t be afraid to ask if they get a referral fee for inspections or if they’re related or good friends with the inspector - walk away from those).

Photo from here (which also has more good tips - home inspection basics 101!)

Many positive stories hit the news this morning saying the housing market is showing sure signs of recovery. The online Redding.com (California) site reports good news,

Has the north state’s housing market hit bottom? Data from Zillow.com, among the many Web sites that track values, suggest that prices have not only bottomed out but are coming back up.

The Associated Press provides a detailed analysis about the housing market, economic growth and unemployment. A recovery is definitely in sight for housing, but companies will continue to be cautious about spending and hiring.

Forecasters are hopeful that the housing slump _ in terms of home sales _ will hit bottom this year. However, economists were divided over whether the low point would be reached in the second, third or fourth quarters of this year. House prices, though, are still expected to drop this year and next.

The good news is the story waits until the third paragraph to use the “R” word: Recession.

In other retail news, Lowe’s - the big daddy of building supply - is definitely feeling the pain of the slow housing market. Sales were down according to Bloomburg Business News,

Sales in stores open at least 13 months fell 8.4 percent in the quarter. They dropped 12 percent in February and March and 1 percent in April, helped by better weather and demand for flowers, plants and bushes…

I’m glad to have helped out Lowe’s and Home Depot. We bought new flower pots for outside, some pansies, and yellow lantana flowers that I’d never heard of but are pretty.

Special Note for you would be gardeners: I just searched for a photo of the lantana flower to share with you and learned that it’s an invasive weed-type flower and poisonous to boot.

As a follow-up to yesterday’s post about people converting small backyard sheds into homes, I saw this article today on the CNN.com site: The Incredible Shrinking House.

Out on the range is the last place you would expect America’s long-running obsession with big houses to be laid to rest.

But four years ago Rachel Odom, an Oklahoma City home builder, began constructing an exclusive development where houses average just 1,800 square feet. That’s far smaller than the homes of up to 6,000 square feet that her company had been building until then - and nearly 500 square feet smaller than the national average for new construction.

I love spotting a trend! Country Home magazine just did a makeover of a little house, according to Small Space Style. With clever storage ideas and beautiful colors, the 929- square foot house is astonishingly gorgeous.

If I had two years and with an unlimited budget, I would never be able to pull this off. Hats off to the designer!