The 15 most common problems reported in home inspections

When you’re buying or selling a home and the purchase agreement is freshly signed and you’re officially in escrow, things move fast. But it all comes to a head for one seminal event that could make or break a real estate transaction - the home inspection. In fact, home inspections (along with the appraisal and seller disclosures) are like a big flashing yellow right in every deal, with the buyer not feeling comfortable to move forward (by removing contingencies) until a full home inspection report is on hand – and usually the seller addressing any major fixes that need to be done.

Just how important are home inspections to buyers? An annual American Society of Home Inspectors reveals that 88 percent of respondents say home inspections increase their confidence about the condition of the property, 72 percent of U.S. homeowners said that a home inspection helped them avoid potential problems when they bought their home, and 64 percent of homeowners said they saved a lot of money as a result of their home inspection.

But home inspections don’t have to be nerve-wracking or a stumbling block to a home sale closing as planned. To avoid any unwanted surprises, pricy renegotiations, or even deals falling through, home sellers would be wise to do their own pre-inspection, by themselves, with the help of their handyman, or even by hiring a home inspectors themselves before listing the home, especially for luxury and high-end homes.

With a little planning and diligence, a clean home inspection report will encourage the happy buyer to proceed with a smooth transaction. In order for sellers to know just what to look for and proactively fix, here are the top maintenance issues found in home inspections:

1.    Electrical

Home inspectors make sure all outlets, GFCIs, and switches work properly, as well as check electrical breakers and fuse boxes. Some common problems include old wiring, wiring connections not put in a junction box, a lack of GFCIs in kitchens and bathrooms, outlets with reversed polarity (hot and neutral wires are mixed) and two electrical circuits wired through a single breaker.

2.    Water and plumbing

Smaller leaks around toilets, under sinks, and dripping faucets are actually pretty common and easily fixed, but bigger water damage issues can lead to mold and major structural damage, so home inspectors will look for telltale signs like discoloration on ceilings, rot, and cleanouts and drains that don’t work properly. Older homes may present a problem because galvanized water lines rust from the inside, closing the passageway which water can move through and reducing water pressure. Replacing all your water lines with new copper piping can be a huge expense – but necessary at some point.

3.    HVAC systems

Heat and air systems require regular maintenance and are costly to replace, so home inspectors will test both heating and cooling systems (no matter what the season!) thoroughly. Homeowners should be replacing their filters periodically and getting their HVAC system tuned up once or twice a year to keep the unit in good working order and prolong its life. Inspectors will also check the flow of ducting and making sure AC units outdoors are clean of debris and obstructions like high grass. Older homes or those in colder climates may have a furnace or boiler that also needs TLC.

4.    Smoke and CO detectors

This isn’t just nit picking, these detectors really save lives. In fact, studies show that fire-related fatalities are twice as high in households where no smoke detector is present or it’s inoperative. Regulations and safety codes for smoke detectors vary from state to state, but according to section 310.9.1 of the California Building Code, all residences must have smoke detectors installed.

Likewise, carbon monoxide poisoning shouldn’t be taken lightly, considering that more than 10,000 are poisoned by carbon monoxide and need medical treatment each year, and around 500 people die from carbon monoxide poisoning in the U.S. every year. California is now one of the 26 states in the U.S. that now mandates carbon monoxide detectors in private dwellings (and even schools) so it’s important you are in compliance not just to “pass” the home inspection but for the health and safety of your family.

Additionally, radon gas in the home is a growing health concern and testing is becoming more common.

5.    Windows

Home inspectors will check to make sure all windows open and close freely and aren’t painted shut, bent or warped, impeded by window ACs if they are the only egress in the room, and generally that they are up to standards of the home. Windowpanes should be free of cracks or splintering, and most people don’t realize that the dreaded fogging or trapping of moisture between double paned windows as the vacuum seal is breached will be an item the home inspector needs to flag.

In older homes with original windows, sash cords are often broken or missing, inhibiting the window from staying open, or closing correctly, and will need to be fixed.  Remember that focusing on windows being in tip-top shape isn’t just for cosmetic reasons but to ensure safe exit in case of a fire or other emergency in the home. 

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Look for part two of this blog where we'll cover the rest of the 15 most common maintenance items that are flagged in home inspections.

10 Home buying mistakes to avoid at all costs.

These common home buying mistakes could cost you time, money, and sometimes the chance to buy your dream home.

Buying the oddball home.
Homes go up in value when other homes with similar layouts in the same neighborhood sell for more. These “comparables” or “comps” allow an appraiser to officially justify an increase in value, and therefore you’ll have more equity if you want to sell or refinance. So it’s important to buy a home that is uniform to most of the other homes n the neighborhood, or else the appraiser will have few or no sales to use as comps. So don’t purchase the only 2-bedroom home in a neighborhood full of 3 and 4-bedroom homes, and never buy the nicest house in a bad neighborhood.

Focusing on cosmetic issues.

Too often, home shoppers walk into a sizable home with a great floor plan in a wonderful neighborhood, but automatically cross it off their list because it has ugly carpet, bright paint colors, or the kitchen or bathrooms are outdated. Don’t be afraid of cosmetic fixes, and in fact, you may get a better deal and have less competition because of them. It’s easy and cheap to get the minor cosmetic fixes and updates done, but adding square footage, putting on a new roof, or the opportunity cost of buying in the wrong neighborhood etc. can get prohibitively expensive.

Becoming emotional.

Of course buying a home stirs up feelings up hope, elation, and even a little fear, but buyers need to remember that the most important thing is that they focus on making good business and long-term decisions.

Not having a strategy.

House hunting takes a lot of time, energy, and diligence, but without proactive planning you might just be spinning your wheels. So make sure to sit down with your Realtor and formulate a plan of attack so you end up finding the right house at the right price in the right neighborhood most efficiently.

Paralysis by analysis.

There are two ways we choose a home: with information or with emotion. Hopefully, you’ll use both when house hunting. But some times, people get so focused in on analyzing every single statistic, detail, and shred of data that it holds them back from making any offers or having a chance at buying any house, their ultimate goal! Fear of making offers, not looking at the market realistically, and expecting to get every single item on your list of needs and wants for a home are all symptoms of paralysis by analysis.

Overlooking important problems.

At some point in your house search, you’ll probably walk into a home and very quickly think, “This is it!” But no matter how much it “feels right” or you love the house, don’t ignore flaws or problems. Always get a home inspection and pay close attention to the big-ticket problem items like foundations, roofs, electrical, plumbing, etc. just because you love the house.

Not checking your credit report and getting preapproved.

When do you start the home buying process? Ideally, you should begin getting your finances in order 6-12 months ahead of time. In addition to saving for your down payment and carefully budgeting, you’ll also want to check your credit score and take action to boost it as much as possible. The difference between a good and a great credit score could make a huge difference in the loan you qualify for, your interest rate and payments, or even being an attractive homebuyer to sellers and getting your offers accepted.

About 2 to 3 months before you’re ready to get in a Realtor’s car and start shopping for homes, you’ll want to sit down with a mortgage professional to get preapproved for a loan. That will let you know exactly what you qualify for, what’s affordable for your budget, and therefore which homes in what price range you’ll be able to hunt for, saving everyone’s time - and probably money.

Picking your real estate agent and lender blindly.

You’ll need a great working relationship with your Realtor and mortgage lender, one that’s based on trust, market knowledge, and industry experience. It’s too big of a decision to just go with the first Realtor who approaches you or someone just because you know them. Contact some neighborhood experts, ask your friends and coworkers for great recommendations, read Yelp reviews, review their website and testimonials, and don’t be afraid to interview perspective agents and mortgage professionals.

Not hiring a home inspector.

Your home is probably the biggest investment you’ll make in your life; way too important to skip the few hundred dollars it takes to get a home inspection. A home inspection will disclose both cosmetic flaws and the big, important problems with the house that could cost you thousands of dollars down the road.

Not researching your neighborhood.

Remember the old home buying wisdom, “Location, location, location?” Well it still applies, as you’ll want to get to know the neighborhood very well. Are there train tracks nearby? Street noise? Crime problems? Good schools? Is it an easy commute to your work? Are values generally going up in that neighborhood? These are all questions you’ll want to ask with the help of your real estate agent.

Everything you need to know about real estate closing costs.

When you’re buying or selling a home, there are a lot of people working hard for you to make sure the transaction goes smoothly, is error free, and to safeguard your best interests. They include appraisers, banks, home inspectors, loan officers, title and escrow staff, and many more. The fees for the various services inherent with the purchase or sale of a house are collectively called, closing costs.

It’s estimated that closing costs usually account for around 3-5% of the purchase price of the house when you're a buyer though those costs could fluctuate based on your situation (like if you’re taking out a mortgage to buy the property or just paying cash.) The good thing is that when you buy a home, your Realtor’s commission is paid for by the seller, which is usually 2.5%-3%.

When you are selling your home you take on paying both commissions – for your Realtor and for the Realtor who brought you a buyer and represents them. But of course you don’t need to pay for a mortgage loan when selling or any of those costs.

Like we mentioned, closing costs vary from place to place and based on the individual situation. For example, some states use separate title and escrow companies, some use combined title & escrow firms, and some use real estate attorneys, instead. But the here is an explanation of the typical closings costs you’ll see in most residential real estate transactions.

Points.

A point is an amount equal to one percent of the total amount of the mortgage loan you are taking out (not the total purchase price.) There are two classifications of points you may see:

Origination fee (also called points.)

This is the fee you will pay the lender for their service of delivering an approval for your purchase loan.

Discount points.

These points are essentially up front money you pay to “buy down” your long term interest rate. Typically, for each discount point you buy, your long term rate will be lowered by 0.125 – 0/375 percent. For those who plan to stay in their home – and their loan – a long time, discount points may save them big money.

Application fee.

$250 - $750. Goes to the lender.

When you first apply for a mortgage loan to acquire the house you want to buy, lenders and brokers may charge this fee as a general cost of doing business. They also usually have flexibility to waive the fee, apply it toward closing costs, etc.

Appraisal fee.

$350-$500. Goes to the appraiser or lender.

Every bank or lender will require that you get a certified appraisal on the home you are buying, which is a assessment of its value. This is an important step in the process, as it ensures the buyer is getting equitable value for the price they are getting.

Credit report fee.

$25-$45. Goes to the lender.

This fee covers the lender’s cost to pull your credit report, which is part of the loan application process.

Processing fee.

$500-$1,000. Goes to the lender.

Almost all lenders have a staff of people who meticulously prepare the documents of the loan application and real estate transaction for submission to the bank or lender’s underwriters.

Underwriting fee.

$200-$800. Goes to the lender.

Underwriters at the bank or mortgage company where you are applying for the loan will scrutinize your application and details of the transaction and decline or approve the file, or issue a conditional approval (the vast majority of the time) with stipulations for the borrower to meet.

Escrow fees.

$ varies based on location and home price. Goes to the escrow company.

While a few states use attorneys, most still use escrow companies, which are neutral third-party companies who facilitate the whole transaction and coordinate closing between the bank, lender, buyer, seller, etc. as well as handle the money.

Title insurance.

$200-$900. Goes to the lender’s insurance policy.

Title insurance is insurance taken out and paid for by the seller for the home buyer, while the home buyer pays their own insurance to protect the lender, who has a legal claim against the property until the mortgage is paid off.

Transfer taxes.

$ Varies. Goes to the lender, county, or municipality.

This fee pays for the service of transferring the tax responsibility for the property from seller to buyer.

Title company fee.

$150-$400. Goes to the title company.

The title company does conducts their due diligence to make sure the property is free and clear from issues about ownership or disputes about use.

Survey fee.

$100-$400. Goes to the title company.

This fee pays for a land survey, which determines the legal boundaries and definition of the property being sold. Some times, survey fees are lumped in with other title fees.

Document prep fee.

$25-$200. Goes to lender or title company.

This is a fee for producing and printing the hundreds of pages of documents needed in any real estate ransaction.

Home inspection.

$350-$500. Goes to home inspector.

The best money you’ll ever spend as a home buyer is for a thorough examination by a well-qualified home inspector. They will prepare a detailed report disclosing the condition of your property and any problems or defects, particularly with electrical systems, plumbing, some appliances, foundation, etc.

Pest (termite) inspection.

$50-$125. Goes to pest inspector.

California requires a pest inspection for each real estate transaction, to ensure there aren’t problems with termites, other active infestations, dangerous molds, etc.

Flood certification fee.

$15-$30. Goes to lender or insurance issuer.

Some times it’s necessitated that the insurance company determines whether your home lies in a flood zone or special flood zone, which is paid by you.

Recording fees.

$50-$200. Goes to the county or municipality.

This fee covers the cost of having your home sale or purchase officially registered as a matter of public record with the country government, meaning it’s official!

Courier fees.

$50-$150. Goes to lender or courier company.

Courier fees cover the cost of transporting documents back and forth between the lender, title company, escrow company, state recorder, etc.

Mold in your home can be a serious health risk - here's what you need to know to stay safe.

There is an enemy lurking in your home - almost undetectable, slowly spreading while you sleep, growing uninhibited until it can damage your family’s health.  We’re talking about toxic mold, which can spring up behind the walls and under the floors wherever there is a source of moisture.  There are more than 200 types of mold, but with and with 1 in 12 Americans affected with asthma or some respiratory illness, mold in the home can severely affect your health – or even cause hospitalization or death in extreme cases.  Luckily, if you’re buying a house there are very specific mold disclosure laws in California, and we always recommend you get a thorough home inspection, which should be able to identify potential problem areas.  But it can’t hurt to be careful and proactive, so here is a quick primer on the problem of mold in your home:

What is it?

Mold is an organic fungus and part of the natural environment.  In the outdoors, mold serves a purpose by breaking down dead organic matter like leaves and dead trees.  There are over 200 types of mold and it can come in several colors – like black, green, gray or white.  Some molds are visible and give off an odor, but others are virtually undetectable.  The most dangerous molds give off mycotoxins, which can cause severe illness.  Mold grows where there is consistent moisture or dampness.  Therefore, mold growth in houses or apartments is a major problem that could impact the resident’s health and should be taken seriously. 

Mold reproduces by releasing its spores, which are invisible to the naked eye but can spread through the air.  Mold spores will only grow and spread if moisture is present.

Where can mold grow?

The scary thing about mold in the home is that it can grow virtually detected wherever there is a moisture source and needs only 24-28 hours to appear.  Mold can grow at the base of leaking windows, on the back of sheetrock, the top of ceiling tiles, under carpet or flooring, and even take hold inside your heat and air conditioning vents.  Bathrooms, basements, anywhere there is a water leak, areas of flooding, and near area where pipes or vents access the outdoors are typical areas of potential mold.

Is mold dangerous?

Mold can be extremely dangerous so should be treated seriously and with the utmost caution.  Mold spores produce allergens, irritants, and sometimes mycotoxins, which can exacerbate allergies or health problems or even cause sickness.  While most molds are not deadly, black mold and other strains can seriously affect a person’s health or even prove fatal over time.  Some molds can take a toll on your health immediately, while others manifest over time.

How can I prevent mold?

Remember the mantra, “The key to mold control is moisture control.”  Around the house, look for dripping pipes, leaking plumbing, windows, doors, or areas of the roof that allow water in, or other constant moisture sources.

If you have an area of the home that is prone to moisture, like a damp basement, buy a humidifier to take some of the moisture out of the air.  Make sure your bathrooms have good ventilation fans. 

Inspect your home inside and out for areas of mold growth, water damage or consistent water access and fix accordingly. 

What are the warning signs?

Inside the home, look for wet patches or areas of flooding.  While these are often behind the walls or in other areas hidden from eye, there are warning signs.  Look for brown or discolored patches on sheetrock or building materials.  Look for signs of soggy or rotting walls, woodwork, door and window sills and jams, or ceiling tiles.  Of course keep an eye out for drips, leaks, and standing water.  Check basements, AC pans and hoses indoors and out, and in or behind appliances like refrigerators, washing machines, or dish washers.  Check ventilation registers and inputs for signs of discoloration or dampness.  Some mold gives off an odor that’s warning sign – a damp, earthy smell, but other mold is odorless.  But remember that mold can only exist with moisture, so thoroughly examine your home with that in mind.

How can it impact my health?

If airborne mold spores are inhaled, which means they can easily affect a person’s respiratory or immune system.  People with asthma or other respiratory illnesses usually are most susceptible, and could have problems sleeping and headaches.  Other health problems that could develop from mold spore exposure are breathing problems, congestion, headache, severe or increased allergic reactions, asthma, sinusitis, and many kinds of infections.  Since mold spores are allergens, they can cause skin rashes (dermatitis,) sneezing, red and itching eyes, throat and lung issues, and other symptoms.

How can I clean it up?

It’s recommended that you hire a professional if you have a serious mold problem or any doubt about its existence or seriousness.  But some times there may be small areas of non-toxic mold that you want to clean up proactively.  You can buy a simple test kit at any Home Depot or most hardware stores.  You’ll probably also want to wear a N-95 respirator, which you can buy for $20 or so.  Wear protective rubber gloves and dispose of everything carefully when finished.  Most non-toxic mold infestations can be cleaned up by scrubbing with regular household detergent.  Some people have used biocides like chlorine bleach to clean up mold, though it should never be mixed with other detergents or chemicals and a proper respirator, gloves, and protective eyewear should be worn.   Never just paint or caulk over mold and make sure to keep it away from children.

If in doubt, hire a professional to run the appropriate tests.  If mold becomes a significant problem or you suspect airborne spores or are having any health problems, consult professionals.

Further resources.

The U.S. Environmental Protection Agency (EPA) provides extensive information in the Molds and Moisture section of the EPA website.

The Center of Disease Control (CDC) offers comprehensive information on mold on their site. 

Always get a home inspection when buying a home and pay attention to the seller’s disclosures about mold and water damage.

Mold remediation companies can do a thorough inspection of your home, inside and out, and detect mold in the air by running lab tests.  They can also take samples of building materials like walls or ceilings to check for mold.  A professional inspection may cost you a couple hundred dollars but may be the best money you’ve ever spent!