I just backed
out of a deal on a house that was being sold “as is”. It looked like it needed a just a lot of
cosmetic work, but it had drainage and foundation problems that I wasn’t aware
of until the property inspector pointed them out. I was frustrated because many of the things
the inspector pointed out, were actually visible when I first inspected the
house. I just didn’t realize their
significance. I’m going to keep looking,
but don’t want to make this mistake again.
What are some of the things that I should be looking for when buying a
house before I make an offer?
D.H., Oakland
Having to back
out of a real estate transaction because of undisclosed issues is not only
frustrating, but is also costly and time consuming. Buying a property “as is” is sometimes risky
because they are often put on the market without much disclosure.
This puts more burden on the
buyer to determine if there are any serious concerns.
Most people don’t really
find out about the condition of the house until they have the house
inspected. Then, if major items are
disclosed and the seller refuses to correct them, buyers have the option of
backing out of the deal. The problem is
that by the time buyers decide that they need to back out of a transaction,
they have already spent hundreds of dollars on title, appraisal, and inspection
fees.
However, with a little
specific knowledge about what to look for, and a basic understanding about how
house are built, and react to environmental influences, a buyer can greatly
reduce their chances of putting an offer on an house that has major
problems.
The most important aspect of
a house is its structural integrity, i.e., how well it was constructed, and how
well the foundation is performing its job of supporting the house.
This should be a home
buyer’s primary concern. There are
basically two things that can influence the integrity of a house or foundation,
environmental and human influences.
Environmental influences include wind, rain, earthquakes, and drainage
around a building. Human influences
include modifying or changing something from original construction.
In order to evaluate a
house’s structural integrity you need to start with the foundation and the soil
it is built on. If there is movement or
cracking to the foundation, there will also be movement to the interior and
exterior walls of the building. This
will create cracking to the interior and exterior surfaces of the house, as
well as floor sloping. Carefully check
the windows and doors for proper opening and closing, and check the floors for
sloping or excessive bounce. If the
windows and doors do not operate smoothly, or if they have been cut or modified
to work, there could be potential structural concerns.
The second thing you should
check for is if there has been any modifications or additions to the
house. Any time a house has been
modified, there is potential for concern.
You should ask if the work was done by a licensed contractor, and if it
was done with permits. Additions and remodels to homes are often
done by the home owner, or uncle Bud. On
the surface they may look good, but a closer look can reveal defects in the job. Unsafe or un-permitted work can potentially
expose the owner of a property to considerable liabilities.
The most common
modifications usually performed by non professionals, and often installed in
non code complying ways include the following: new landscaping or underground
drainage systems, patio covers, kitchen and bathroom remodels, basements,
elevated decks, roof installations, skylights, electrical upgrades, gas lines
to fireplaces, fireplace inserts, new furnaces
or water heaters, ceiling fans, and new double pane windows.
Most of the time
modifications to a building are not disclosed, because sellers don’t realize
that they should be. That is why it is
up to the buyer to seek them out. Once
modifications are identified, a buyer
can verify if the work was done with permits by contacting the local building
department and asking for a permit history for the property. This will list all of the permits that have
been taken out for a particular property.
My best advice when trying
to evaluate a house’s condition, is to thoroughly inspect as much of it as you
can, looking into the attic and under the house if possible, and inspect the
property site. Ask as many questions as
you, and although you may not know the significance of something, make notes of
everything you see that may not look right.
Look for modifications or upgrades to the house or any of its
components.
At a later time, review the
notes, and see how you feel. At this point you will know whether you should
proceed with the transaction and have it inspected, or maybe walk away. Learn to trust your judgement or initial
sense about your findings, because it is usually right.
John R.
Schneider is a licensed general building contractor and a certified residential
code specialist. He is president of All About Homes, a residential inspection
company, and has been performing code and construction consultations since
1985. Readers may address their comments
to John Schneider, 24326 Mission
Blvd. Suite 7, Hayward,
Ca 94544. Fax number: 510 537-8666. Please include your phone number. Schneider will answer questions of general
interest in the paper. He reserves the right to edit the letter for brevity and
clarity. Readers are encouraged to contact a competent contractor or code
consultant for specific information regarding questions they may have about
their homes.
Copyright
2002, John R. Schneider, all rights reserved