How to Turn Your Home Inspection
Into a Maintenance Planning Guide
By Michele Dawson
Your offer
has been accepted and, like 77 percent of American homebuyers,
you've heeded your agent's advice to hire a professional home
inspector to examine the home you hope to purchase. But once
the inspector has done the job and issued a report, what's
your job?
Barring the discovery of a major defect that will significantly
alter the negotiations, you shouldn't dismiss the inspection
as just a formality. Instead, you should use the findings,
along with a little research, to calculate how much replacement
and maintenance of individual parts will cost you in the coming
years and analyze the value of the home you're about to purchase.
To begin, you'll need to scrutinize each part of the picture
and analyze the finding as a whole while considering the home's
construction, the amount of maintenance required, the quality
of the individual parts, replacement cycles, and improvements
that have been made, says Freddie Mac, which finances one
of every six homes in the country.
Once you have the report in hand and have gone through the
house carefully several times, including with the inspector,
Freddie Mac recommends that when you evaluate the big picture
you:
- Consider how well the home is maintained. A well kept
home will command a higher price than similar homes that
have not been maintained through the years.
- Weigh the individual parts. If original casement windows
have been replaced with new insulated glass windows, consider
that a plus. Similarly, if the kitchen has undergone an
impressive remodel with new appliances and cabinetry, you
can put aside any concerns about replacement costs in the
near future.
- Understand the replacement cycles for the house's systems
and parts. If you're looking at a 10-year-old home, then
you can expect to replace the dishwasher, disposal, hot
water heater, warm air furnace, heat pump, air conditioning
compressor, and gas chiller within the next five or so years.
If the house is 15 or more years old, then you'll want to
thoroughly examine the condition of the roof - asphalt,
wood shake or shingles, and fiberglass roofs need replacing
at about 20 years and will cost up to $1.75 a square foot.
- Consider any additions in your analysis. These will add
value to the home. An addition typically costs $70 to $120
per square foot.
- Try to detect and determine how much was spent on major
remodeling projects. Then analyze the increased value of
the property compared to similar homes in the neighborhood.
You could be getting a bargain. If the sellers put $40,000
into a kitchen remodel but are asking just $20,000 more
than equivalent neighborhood homes, you're getting $20,000
in extra value.
- Consult your real estate
agent about whether the house has been over-improved.
If it is, you could potentially have problems when you resell.
- Know the cost of materials. Realize that slate roof costs
five times as much as an asphalt shingle roof; masonry or
brick facing is about three times more than wood, vinyl
or aluminum; hardwood floors are about twice as much as
carpeting.
- If a home in bad shape, then you'll want to calculate
how much it will cost to bring it up to livable standards.
You'll also want to consider whether the needed improvements
are functional or aesthetic requirements.
Once the home inspection
is complete and you've decided to purchase the home, the inspection,
along with Freddie Mac's guides, should also give you an idea of
what it will cost to maintain it in the years to come. You'll have
peace of mind and the ability to plan ahead for your home's
maintenance and repairs.
The Realty Times
Published: May 13, 2002
www.RealtyTimes.com
|
