From Homescape

written by Frank Schulte-Ladbeck on Wednesday, August 20, 9:09AM

Frank Schulte-Ladbeck

While most people like to believe they are opened-minded, most of us have been guilty at some point in our lives of making judgments based on appearance. When it comes to home buying and selling, the appearance of a property is everything. But to get a true sense of the quality of the home, people should never strictly judge a home by its exterior appearance. A great deal of work may have been invested into making the home look nice, but an inspection can sometimes turn up major internal problems, which could have been easily taken care of beforehand. Whether you’re currently in the process of selling a home are just waiting out the real estate downturn, keeping up with basic maintenance repairs will only help increase your home’s value.

Recently, I was on the National Association of Home Builders (NAHB) Web site when I came across a press release from the trade group on the state of the remodeling industry. I was surprised to learn that remodeling projects have been declining since 2005, and that growth within the industry is expected to remain flat for the coming year. Considering that my wife’s “honey to-do list” is ever increasing in scope, I thought that other homeowners would be focusing on revamping their own homes as the real estate market slowly recovers. I guess that I should stop using my wife as a barometer for consumer sentiment.

Affordable repairs
After one weekend of writing several inspection reports, I began to notice that I was making note of the same problems for each house. During the next week, I reviewed some reports produced by other inspectors and found that they had listed some of the same issues. I was taken aback by one report where the inspector noted that the cost to caulk a door would be $75. He gave the same price for a window. I was thinking it would cost me $4 for a tube of caulk, and I could pull out my caulking gun to have the job completed around the house in less than an hour.

With energy and food costs at record highs, people aren’t spending the money they once were for basic remodeling and repair projects around the house. To help homeowners cut down cost for basic home projects, I’ve compiled a repair list detailing some common findings by inspectors, which are all simple tasks that most homeowners can tackle on their own.

Maintenance is a way to prevent major problems with the home in the future. For more helpful repair tips, checkout Ron Haynes’s Wisdom Journal blog. Haynes is a veteran in the lumber and building supply industry, his thorough list of common repairs will defiantly help you in your home maintenance. A little different from my own list, but I think they’re simple enough to be executed by any determined homeowner.

Take care of your home and it will take care of you. I keep by my calendar a list of items around the house that can use some maintenance, and each week I complete most of those tasks. I find doing a little each week really helps. Don’t let repairs pile up. It will only cost you more money and unneeded headaches in the long run.

Frank Schulte-Ladbeck, Professional Real Estate Inspector

written by Frank Schulte-Ladbeck on Tuesday, August 12, 12:50PM

Frank Schulte-Ladbeck

I recently inspected the home of an elderly woman, and during my inspection, I noticed that she had hired different firms to do make various repairs. The woman, who spoke fondly of the man who had come to work on her air conditioning unit, felt that all the repairs were conducted properly. But during my inspection I began to find problems which prevented the AC unit from working efficiently.

Most contractors intend to do a good job. And maybe in this particular situation, the client couldn’t afford all of the repairs, or maybe something went wrong after they completed their job. Nevertheless, I have come across situations where the contractor isn’t equipped or properly trained for various maintenance projects, or they are in a rush and skip over some of the details of the repairs.

For example, the refrigerant line of my client’s AC unit had its insulation torn away, which causes the unit to run inefficiently. The funny thing was that everywhere that this line was visible from the ground, it had its insulation on fine. In fact, it seemed new, which led me to believe that the contractor knowingly failed to redo the insulation on this particular section.

Layman’s terms
Another situation arose in an e-mail from someone with a question about a basic repair. The woman’s uncertainty, demonstrated to me (which I could easily be guilty of as well) the contractor’s failure to fully explain his findings in a way that makes sense to his client. What the builder told her could have been correct, but because his explanation was so abstract, his client had a hard time deciphering the problem. Sometimes inspectors and contractors use language that is too technical, and sometimes we don’t clearly explain the process behind our findings.

By not clearly walking homeowners through the process, we can create a certain level of distrust between ourselves and our clients. Inspectors and contractors that provide transparency will only help grow their business. People who have a better understanding of their homes will be able to take better care of them. Most people aren’t familiar with the industry lingo. Always ask your inspector or contractor to explain the problem or the repairs so you can understand it. You shouldn’t feel embarrassed if you don’t know what they’re talking about.

How can you prevent sloppy work or problems with your contractor?

• Ask the contractor to clearly walk you through the steps.
• If you see something unusual, ask them to explain it.
• If you don’t understand their explanation, tell them that so they can find a better way to show you the work that has been performed.
• Look over the work carefully. When something looks wrong, it may well be wrong, so do not be afraid to ask for quality work.

Frank Schulte-Ladbeck, Professional Real Estate Inspector

written by Frank Schulte-Ladbeck on Wednesday, August 13, 10:29AM

Frank Schulte-Ladbeck

When working with my clients, I try to help them through the homeowner’s insurance process and provide them with the information they’ll need for an accurate quote. When buying homeowner’s insurance, the most important factor is understanding what it is that you are getting and how much you are paying for it. So here are a few things to consider that will help you find the right insurance:

State regulations
State’s municipal Web sites usually provide information for insurance departments, agencies or offices. States regulate how the insurance agencies operate in your area, and they will provide information to let you know about what is happening in the industry. These sites also offer a wealth of consumer information. For example, on Texas’s Web site, you can compare estimates from different insurance companies. You have to spend some time surfing these company sites on your own, but it will give you a solid understanding of varying insurance quotes.

Appraisal district or tax assessor
Before calling a firm, you will need some basic data, which you can obtain from your appraisal district or tax assessor. You should find out the year the home was built, the square footage of the home and any permanent outbuildings (like a garage), your security system, smoke detectors, type of roof and exterior wall, the value of the land and the value of the improvements, such as buildings or other additions added to the land. The insurance company is trying to evaluate the risk associated with your house to determine cost. Security systems can be operated without being monitored, so some insurers will accept it being operated for a discount.

Square footage
Have accurate square-footage measurements and check this figure on your quote. For example, after a few years, one insurer determined that my outbuilding was considered to be a garage, so they decided to increase the square footage, thus increasing my cost.

Two factors are necessary when examining quotes:

• You need insurance based on the value of improvements in most cases. You want money to rebuild the home, not the land.

Every few years you should check if this cost has increased, because you will need to extend your coverage. You should look at what is covered. When comparing quotes, look over the dollar values of pay-outs for different coverage. One firm may cover you for $100,000 of personal property damage, where another only covers half of that, causing a price difference. You could tell them how much coverage you want for each line item. Although it might cost me $80,000 to replace all of my personal property if I bought everything new, I know that I buy used furniture to be repaired, so I could go with $35,000 to replace all of my personal property.

• The second factor is your deductible. A 1 percent deductible is common, but you could raise it to 2 percent. This means that you would pay more out of pocket when something happens, but your yearly rate is less. If you keep money in savings, then this option may not be bad for you.

Before you obtain quotes, determine what you can afford and how much it would cost to replace your home and personal belongings. Proper coverage can save you money and give you peace of mind.

Frank Schulte-Ladbeck, Professional Real Estate Inspector

written by Frank Schulte-Ladbeck on Wednesday, July 30, 9:10AM

Frank Schulte-Ladbeck

During my career as a home inspector, I’ve noticed there’s an aspect of a home inspection that sellers consistently get angry at and buyers become nonchalant about: home safety reports. For sellers, the idea that they haven’t been fined for any major violations equates to a danger-free home. And for most buyers during their home search, they’re more preoccupied with the number of bedrooms and additional amenities of the home to seriously think about the possibility of a fire or other disaster at the property. Despite peoples’ lackluster enthusiasm for home safety reports, most inspectors continue to include their observations on safety precautions — and for good reason.

Home fires continue to be a leading killer in this country. In 2006, someone in the United States died in a fire about every 162 minutes, and someone was injured every 32 minutes, according to the Center for Disease Control and Prevention. Four out of five U.S. fire deaths in 2005 occurred in homes. Most victims die from smoke or toxic gases and not from burns, and cooking is the primary cause of most residential fires.

Here are some home safety tips for you to consider:

Smoke detectors: The alarm is meant to wake you up if there is a fire, so placing it near the bedrooms is a must. One in each bedroom is the best solution, or one in the hallway adjoining the bedrooms is the next best option. There should also be one detector on each floor of the home.

Windows: You should be able to easily pass your child through the window during an emergency. This means that a bedroom window should be large enough for a person to fit through it, and it should be close enough to the ground to set a child down. Most burglar bars prevent quick escapes, so try to find one that has a keyless release mechanism that will allow you to open it quickly.

I prefer rolling shutters in this case to bars. The shutters can be used for storms or as theft protection. When hurricanes come close to my city, all of the plywood is sold out at home-improvement stores, so people have no means of protecting their windows. Shutters are always there when needed.

Second-floor ladders: Most homes have only one stairwell. If there is a fire there, you are trapped. Keep a rope ladder in a box by a window that will allow you to climb down from the second floor when other means of escape have been blocked.

Fire extinguishers: A small extinguisher in the kitchen, which can put out different types of fires, can help avoid disaster. Extinguishers must be checked every so often to make sure that they still have their charge.

Escape plan: Instruct your family on how they should evacuate the home and where everyone should meet outside. Practice it. My neighbors looked at me strangely when I was testing how well I could get my son out through a bedroom window. But once they realized that they should be doing the same, the next weekend was their turn to get the strange looks.

Securing flying objects: Wind bursts during storms can toss some fairly heavy objects. Place plants and lawn furniture into the shed or garage and stow away other loose objects. I once saw a piece of driftwood go through a roof during a windy storm that was weaker than a hurricane or tornado.

Trip hazards: We know our homes, and we know the areas where we can trip and fall, but do your guests? Sure, you can shrug it off and assume that guests will notice these trouble spots. But not all trip hazards are apparent, so take care of them.

This is a basic list, but you should give it some thought. No one wants their home to become a disaster scene, but if you are prepared for an emergency, you’ll sleep better at night knowing you and your family will be all right.

Frank Schulte-Ladbeck, Professional Real Estate Inspector

written by Frank Schulte-Ladbeck on Wednesday, July 23, 8:52AM

Frank Schulte-Ladbeck

You could say that home inspectors use a vague guideline to justify their findings, which can often leave consumers confused. States which regulate inspectors and home inspection organizations, institute a set of guidelines called a Standard of Practice (SOP) which inspectors use to examine a home. Typically the SOP includes a list of minimum requirements that inspectors are encouraged to surpass. But for many home buyers and sellers, these inspection guidelines are foreign and difficult to understand.

Setting new standards
The state of Texas is currently reviewing its SOP, and it may be that next year we will have a new procedure in place. These guidelines, however, do not specify the varying situations that must be noted in the inspection report.

For example, Rule 535.228 (a)(8) states that the inspector shall “report as in need of repair conditions and symptoms that may indicate the possibility of water penetration that are present and visible, such as improper grading around foundation walls or plumbing leaks....”

Taking a look at one part, you could ask what is improper grading? The rule presents no definition. Most inspectors may use a code from the 2003 International Residential Code (IRC) that states four inches for a brick veneer. Some inspectors may rely on the new 2006 IRC, which says it should be six inches. A homeowner may find that a pest control expert will suggest at least three inches. The differences in these measurements may seem insignificant, but they can greatly affect you during the sale of the home.

A rule to define a rule
John Cahill, who is a former Texas Real Estate Commission (TREC) inspector chairman, recently presented his own thoughts on the issue in a detailed blog post. In his post, Cahill recommends “creating within the TREC rule a Request for Interpretation (RFI) procedure. The procedure should respond to the licensee or public in a timely manner. The response should be preserved and reviewed annually for permanent inclusion in the SOP. The interpretations should be made available to all licensees and the public via Internet. The interim document could be called ‘commentary,’ although it may not be enforceable until adopted as rule in the Standard.”

Cahill’s recommendation allows consumers the ability to question what the standard means. There have been methods to question inspectors and their reports before this, but Cahill’s recommendation means that the standard itself could be questioned and then defined. The consumer can then have a clearer interpretation of the procedures behind a SOP. This proposal has its pros and cons. SOPs are meant to be vague, so an inspector can make the finding in his report based upon his own understanding of the current industry standard.

More consumer access
Since updating SOPs can be a long process, it’s not a bad idea to allow an inspector leeway to make a determination based on current definition. The flipside is that it’s also important for the consumer to know that inspectors will follow one guideline with a specific definition when producing their findings.

I would like the consumer to be able to have this clarification process at their disposal. An open process in the industry can only improve how inspectors work. I think that such a process should be in the hands of those who understand current building standards, such as an inspector’s committee. If a form of this rule is adopted in Texas, you may see other states follow suit. A uniformed standard will only help to simplify the process and provide consumers with a better understanding of the inspection process.

Frank Schulte-Ladbeck, Professional Real Estate Inspector