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
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