Tuesday, March 13, 2018
Friday, March 9, 2018
So, you want to buy a house cheap, and you look to the foreclosure market. Considering the over-abundance of these properties and just how little many of them are going for, it’s tempting to jump on the bandwagon and buy up. And it may pay off as a long-term investment. But, like any other major purchase, you should know as much as you can about a property before you buy it, which is why home inspections, performed by certified InterNACHI inspectors, are necessary.
Unfortunately, many real estate agents, who don’t like bargaining with banks, are advising clients that home inspections are of no value as a bargaining tool, since banks don’t negotiate on “as is” properties. As an added disincentive, banks selling properties “as is” have no legal responsibility for any lurking defects. While the agent's advice to forgo an inspection as a means to negotiate on the price may be logical, it is startlingly counter-intuitive, and possibly even negligent. Would you buy a car without knowing whether it has a transmission? The same premise holds true for a house, regardless of whether you intend to live in it, or fix it and flip it. The Realtor may be trying to salvage a deal that could possibly be scrapped if an inspector uncovers damage that the bank is unwilling to pay for, and you, as the buyer, have to realize that the agent's advice is not in your best interest. In this case, they’re putting you at risk in order to ensure they get their commission.
Any Realtor advising against an inspection on a foreclosure (or neglecting to recommend that one be performed) is ignoring the likelihood that, long before the previous owners stopped making mortgage payments, they deferred required maintenance tasks. Moisture intrusion leading to leaks and mold are just a few of the major problems commonly found by inspectors in foreclosed properties. Tales abound of bizarre discoveries in abandoned properties, from wild boars to colossal bees nests. Former owners may loot their own properties, taking with them anything they can pry up or unscrew, and leave behind trash and junk that you have to pay for to have removed.
There are also stories of foreclosed properties that have been intentionally vandalized by their former owners in acts of retaliation against their banks. In one infamous case in early 2010, an Ohioan bulldozed his $250,000 home after the IRS placed liens on his carpet store, and then threatened to take his house. The damage done by the owner was apparent, but there are probably less extreme situations where the damage isn’t as obvious, making a home inspection of utmost priority.
You should always get a home inspection before buying a property, especially when you’re buying a bank-owned foreclosure. In such cases, it may be impossible to find out how well the home was cared for, or whether major damage was done right before the past owners left the property. Ask the bank how much time you have after your initial offer to have an inspection performed, and schedule one immediately. If it goes well, you’ll enter into the deal with peace of mind and a better idea of what repairs you’ll have to deal with. That alone is worth the price of an inspection. If the inspection reveals a costly disaster, you can back out of the deal and save tens or even hundreds of thousands of dollars.
To schedule your home inspection, call 210-202-1974, or visit www.vhillc.com/request-inspection to schedule online.
by Nick Gromicko, Mike Marlow, and Kate Tarasenko
Monday, March 5, 2018
We were recently asked to contribute to an article about what we wished our clients knew about the home inspection process. Here is the final article: http://bit.ly/2oRYkv0 and there is some great information from some very experienced home inspectors.
Friday, March 2, 2018
While the terms “modular home” and “manufactured home” refer to two very different things, they are sometimes used interchangeably. Perhaps some of this confusion stems from the fact that modular homes are, in fact, manufactured (“manufactured” might be an unfortunate label.) Also, traditional “site-built” homes are not necessarily better than modular homes, despite the stigma associated with their assembly-line origin. There have been cases where Realtors and builders of manufactured homes have misrepresented manufactured homes as modular homes, and buyers were not informed enough to know the difference. Everyone (especially inspectors, who make their living examining residences) should understand the distinguishing features of these two types of houses.
Modular homes are residences constructed entirely in factories and transported to their sites on flatbed trucks. They are built under controlled conditions, and must meet strict quality-control requirements before they are delivered. They arrive as block segments and are neatly assembled, using cranes, into homes that are almost indistinguishable from comparable ones built on-site. Wind and rain do not cause construction delays or warp building materials. In addition, modular homes:
- must conform to the same local, state and regional building codes as homes built on-site;
- are treated the same by banks as homes built on-site. They are easily refinanced, for example;
- follow the same market trends as site-built houses;
- must be structurally approved by inspectors;
- can be of any size, although the block sections from which they are assembled are uniformly sized;
- are often more basic than homes built on-site, but they tend to be sturdier;
- are highly customizable. Design is usually decided by the buyer before construction has begun; and
- generally take eight to 14 weeks to construct. Differing from a site-built home, the foundation can be dug at the same time that the house is being constructed.
The term “manufactured home” is the most recent label for what were once called “mobile homes” or “trailers.” They are relatively inexpensive, small, and are held to less stringent standards than modular and site-built homes. Their obvious advantages are their mobility and affordability, factors that allow buyers to make home purchases without a serious monetary or geographical commitment. They are available in three sizes that escalate as follows: “single-wide,” “double-wide” and “triple-wide.” In addition, manufactured homes:
- conform only to Housing and Urban Development (HUD) code. Some homes contain a red tag that confirms that the unit was manufactured in compliance with this code;
- are inspected, but do not have to be structurally approved by an inspector;
- are manufactured in sections at factories;
- are never more than one story;
- do not have a permanent or conventional foundation;
- tend to lose value over time because they are difficult to expand or improve;
- are transported to the site on their own wheels;
- are transported on steel chassis that are never removed;
- are often placed on property owned by others, such as public land that is leased by the homeowner;
- are treated as a separate lending category from modular and on-site built homes; and
- are rarely custom-designed. The buyer can choose from homes that have already been built and receive it within days.
Despite their manufacturing process, modular homes are essentially the same as homes that are built on-site. They are treated the same under the law, and their basic structural features are almost indistinguishable from site-built homes, once assembled. Manufactured homes are relatively small, inexpensive, mobile residences that require a smaller commitment than is required by modular and site-built homes. It is important to understand the differences between these home types in order to reduce the influence of stigmas, misrepresentation and ignorance.
Many lenders will also ask for a foundation certification from an engineer to certify that the foundation is proper. Through our partnership with an engineering firm, we can handle this requirement at the same time as the home inspection.
To have your modular or manufactured home inspected, call Veteran Home Inspections at 210-202-1974 or visit www.vhillc.com to book online.