Monday, September 07, 2009

HIRE A HOME INSPECTOR WHEN SHOPPING FOR A BARGAIN-PRICED FORECLOSURE

Home inspections have always been an important part of the home-buying process in boom markets and during times of economic downturn, consumer advocates say.

However, today pre-purchase home and condominium inspections have never been more critical with the rise in real estate foreclosures. Realty Trac reported 14,524 foreclosure filings statewide in July, or one for every 361 households in Illinois. That’s 63 percent higher than July of 2008, ranking Illinois eighth in the nation in foreclosures.

With foreclosures rising, so are the numbers of days these homes and condos have been sitting on the market or as part of the bank’s bad-loan portfolio, said veteran home inspector Stephen James, president of Glenview-based American Building Inspection Service, Inc., who noted that it is critical to inspect these properties.

“What first appears to be a bargain-priced home may turn out to be a can of worms filled with defects and costly, necessary repairs,” warned house detective James. “A foreclosure usually means the property has been sitting on the market for months with the utilities turned off. All utilities need be turned on so that system sub-components can be operated and tested.”

If there have been previous water leaks in the home, it is likely that moisture has had time to permeate the drywall and immediate remediation usually is needed, James noted.

“Rising and falling temperatures have a profound effect on the drywall, plaster and, especially, the woodwork,” James said. “All of these items need to be tested for moisture, cracking and warping by a certified home inspector who is a member of Des Plaines-based American Society of Home Inspectors (ASHI).

In addition to checking the utilities, James’ firm typically inspects more than 300 items, including structural components, plumbing, electric and heating systems and provides an itemized cost of repairs, which then can be used by the prospective buyers to further negotiate the purchase price with the bank.

The following home-inspection checklist is suggested by ASHI:

• Insulation. Check the attic and crawl space. Is the insulation adequate and complete? Has it been properly installed? Does it cover up air vents, preventing the house from “breathing” and possibly causing wood rot? Does the house have storm windows?

• Plumbing. Turn on the bathroom sink faucet and the shower and then flush the toilet. When the toilet starts to refill, does the water pressure diminish? Fill sinks and tub with three inches of water. Do they drain properly? Do faucets leak?

• Electrical. Open the door on the fuse box or circuit breaker panel. Is the electrical service adequate? The average house should have 100 ampere service. Is it wired for 220 volts, which is necessary for many of today’s heavy appliances.

• Heating. How old is the heating system. Has it been maintained? Ask to see the owner’s heating bills from the previous year. This will hive you an idea of the efficiency.

• Water damage. Look in the basement for signs of leakage through cracks or holes. This could be a result of poor drainage around the house. Water damage also is caused by seepage through porous basement walls and condensation, which frequently is caused by inadequate ventilation. Lift up any carpeting. Are there any signs of flooding or decay.

• Attic. Check for water damage in the rafters. How much insulation is there? If the attic is damp, it is useless. Check floor joists for load-bearing capacity before you start to build.

• Bathrooms. In older homes, pipes often suffer from reduced water pressure. Run the shower and sink tap, and flush the toilet to see if there's still enough water pressure. Do the sink and tub take a long time to drain? There could be sewer problems. Gurgling drains suggest the sewer pipe isn't properly vented to the roof.

For more information, please contact American Building Inspection Service, Inc. at 1-800–750–3700.