Q-We recently bought our first home. After reading your articles, we made sure to include a clause in our purchase offer for an inspection contingency. The real estate agent recommended a local inspector and we paid him $250 to inspect the house. My husband accompanied him and felt he did not do a very complete job. When questioned, the inspector rudely informed my husband he had over 30 years experience as a contractor and he knew what to look for in a house.
Based on the inspection report, we went ahead and bought the house. Within a month after the purchase, problems developed. The bathroom plumbing sprung a leak in the walls and drained out onto the kitchen floor. Only then did a plumber inform us we have old galvanized pipes instead of copper pipes. Having copper pipes installed will cost about $4,500. The plumber says he found several patches on the old pipes and recommended replacement.
The inspection report said nothing about this. Another major problem is the roof. The inspector looked at it from the outside and said it was in good condition. But after my son heard a drip-drip-drip on his bedroom ceiling during a mild rain, my husband climbed up in the attic and discovered many water stains where the roof is leaking. A new roof will cost about $5,500. We feel the inspector should have warned us about these defects. Do you agree?
A-Like any business, the professional home inspection industry has some very good and very bad people. A major problem is if the inspector finds too many defects, real estate agents won`t recommend him in the future.
Most states are just beginning to license home inspectors to create some degree of control and minimum education requirements. This is long overdue. Until all states license home inspectors and establish standards, the best criteria of a competent professional home inspector is one who belongs to the American Society of Home Inspectors (ASHI).
Furnished vs. unfurnished
Q-We are selling our home due to an out-of-town job transfer and have already bought our new home. But our old home has not yet sold. The real estate agent advised us to leave our furniture in the house, so prospective buyers can see how nice the house looks with furnishings. That was four months ago and we have not had any purchase offers. My wife thinks we should move out all our furniture, paint the walls and install new carpet to make the house look brand new. What do you advise?
A-Since the house hasn`t sold with furniture in it, I agree with your wife`s approach to move the furniture out and refurbish the house with fresh paint and new carpets.
As a buyer, I prefer to purchase vacant houses. Then I can see any flaws or the lack thereof. Most real estate agents advise leaving furniture in a house, but I am not certain that is good advice. Rooms look bigger and cleaner without furnishings. Also, the buyer can then visualize their furniture in the house.
It is true that many buyers do not have the imagination to visualize furnishings, but because your home hasn`t sold with furniture in it, what harm can be done by moving the furnishings out and selling a sparkling clean house? Lease-option
Q-We recently bought a larger house. But our old house hasn`t sold and the 90-day listing expires soon. If we rent the house to tenants, will we owe any tax at the time of the rental?
A-No. Converting a personal residence to rental status will not create any income tax liability. Only if you sell the property will there be a tax due if you sell at a profit.
If you really want to sell the house, I suggest you lease it with an option to buy. Good times or bad, there are always people who have substantial income, but don`t have enough cash for a home down payment. They are perfect lease-option prospects. Further details are in my special report ”How Home Buyers, Sellers, Realty Agents and Investors Can Profit from Lease-Options,” available for $4 from Tribune Publishing Co., 75 E. Amelia St., Orlando, Fla. 32801.
