Hidden Home Defects to Watch For
Joe Scuteri • January 24, 2025
No home is flawless, but certain physical problems can be expensive. Watch for:
- Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.
- Shifting foundations. Look for large cracks along the home’s foundation.
- Drainage. Look for standing water, either around the foundation of the home of in the yard.
- Termites. Look for weakened or grooved wood, especially near ground level.
- Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.
- Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.
- Plumbing problems: Very low water pressure, banging in pipes
Ten Questions to Ask A Home Inspector
- What are your qualifications? Are you a member of the American Association of Home Inspectors?
- Do you have a current license? Inspectors are not required to be licensed in every state.
- How many inspections of properties such as this do you do each year?
- Do you have a list of past clients I can contact?
- Do you carry professional errors and omission insurance? May I have a copy of the policy?
- Do you provide any guarantees of your work?
- What specifically will the inspection cover?
- What type of report will I receive after the inspection?
- How long will the inspection take and how long will it take to receive the report?
- How much will the inspection cost?
Get at least three written estimates Get references and call to check on the work. If possible, go by and visit earlier jobs. Check with the local Chamber of Commerce or Better Business Bureau for complaints. Be sure that the contract states exactly what is to be done and how change orders will be handled. Make as small a downpayment as possible so you won’t lose a lot if the contractor fails to complete the job. Be sure that the contractor has the necessary permits, licenses, and insurance. Be sure that the contract states when the work will be completed and what recourse you have if it isn’t. Also remember that in many instances you can cancel a contract within three business days of signing it. Ask if the contractor’s workers will do the entire job or whether subcontractors will do parts. Get the contractor to indemnify you if work does not meet any local building codes or regulations. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage. Guarantee that materials used meet your specifications. Don’t make the final payment until you’re satisfied with the work.
Upgrading your home is always appealing, but which enhancements really get you a good return for your money when it’s time to sell? A 2002 survey by Remodeling Magazine and REALTOR® Magazine has the answer. To see the complete article, visit http://www.realtor.org/rmomag.nsf/pages/costvaluedec02
The answers to these questions will help you decide:
When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.
It’s an objective opinion of value, but it’s not an exact science so appraisals may differ. For buying and selling purposes, appraisals are usually based on market value—what the property could probably be sold for. Other types of value include insurance value, replacement value, and assessed value for property tax purposes. Appraised value is not a constant number. Changes in market conditions can dramatically alter appraised value. Appraised value doesn’t consider special considerations, like the need to sell rapidly. Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer.
Make your home more appealing for yourself and for potential buyers with these quick and easy tips.
Owner’s manuals for items left in the house Warranties for any items left in the house A list of local service providers—the best dry cleaner, yard service, etc. Garage door opener Extra sets of house keys Code to burglar alarm and phone number of monitoring service if not discontinued.
Give your forwarding address to the post office, usually 2-4 weeks ahead of the move. Notify our charge cards, magazine subscriptions, and bank of the change of address. Develop a list of friends, relatives, and business colleagues who need to be notified of the move. Arrange to have utilities disconnected at your old home and connected at your new one. Cancel the newspaper. Check insurance coverage for moved items. Usually movers only cover what they pack. Clean out appliances and prepare them for moving, if applicable. Note the weight of the goods you’ll have moved, since long-distance moves are usually billed according to weight. Watch for movers that use excessive padding to add weight. Check with your condo or co-op about restrictions on using the elevator or particular exits. Have a “first open” box with the things you’ll need most—toilet paper, soap, trash bags, scissors, hammer, screwdriver, pencils and paper, cups and plates, water, snacks, and toothpaste.
To find out how much money you’ll net from your house, add up your closing costs and subtract them from the sale price of the house.
The closing date. See if the date the buyer wants to take title is reasonable for you. Date of possession. See if the date the buyer wants to move in is reasonable for you. The earnest money. Look for the largest earnest money deposit possible; since it is forfeited if the buyer backs out, a large deposit is usually a good indication of a sincere buyer. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it’s acceptable. Repairs. Determine what the requested repairs will cost and whether you’re willing to do the work or would rather lower the price by that amount. Contingencies. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won’t drag on and keep your sale from becoming final. The contract expiration date. See how long you have to make a decision on the offer
