| |
| |
|
|
Real Estate |
|
Selling Your Home: 5 Deal Killers That Are Lurking In Older Homes
You've listed your home for sale, you have a Buyer and now their Inspector is performing an inspection. You think you have a pretty good home, but do you really know for sure? What is he finding? Why is it taking so long? Here are 5 deal killers to watch out for when selling your home. Deal Killer #1: FPE Breaker Boxes. These breakers and breaker boxes are known to have performance issues. They are no longer made, however they were very popular between the 1950's and 1980's. Many homes still have them. Some of the problems were that the breakers would trip but still allow electricity to pass through the breaker. Another issue was that the breaker would not trip at all causing an over current condition which could lead to fires. Just because the home is 30 years old and you've had no problems, don't expect any Professional Real Estate Inspector to look past a FPE breaker box. The time theory does not hold water with electrical components. In my market, the cost to replace the box with a new 150 amp breaker box is anywhere from $1000 to $2500 depending upon the company and the extent of the work. Deal Killer #2: Aluminum Wiring: The problem with aluminum wiring is that it expands and contracts more than copper wiring. So the components meant to be used with Copper wiring did not work well with Aluminum. The Aluminum would work its way loose over time and cause arcing, which lead to excessive heat, which leads to fires. Even after the alloy was changed in Aluminum wiring, problems still persisted with the wiring. Special outlets have to be used. These are marked CO/ALR. This means that the outlet is designed to work with either Copper or Aluminum. "Pigtailing" the Aluminum wiring with Copper so that the Copper wiring can be attached to the outlets (remember, less expansion and contraction" is allowed by the National Electrical Code. No one is sure why. The Consumer Product Safety Commission does not see 'pigtailing' as a safe alternative. Rewiring the home can be costly. The total price depends on to many variables to give you a price range here. Deal Killer #3: Asbestos: Asbestos was used in many building materials and is still used in a very few even today. Areas a Seller or Buyer will have to worry about it are in a few places. Pipe insulation on older heating pipes, vermiculite insulation, some paints and to a lesser extent, on roof and siding shakes. Asbestos causes the most problem when it is in a loose state (friable) where particles can float around. We're all aware of the health problems concerning Asbestos, so I'm not going to go into them here. If you have Asbestos siding or roofing shakes/shingles, then there is a lesser worry because these are not friable unless broken. Asbestos removal can be very, very costly and not likely a cost a new buyer will want to tackle shortly after moving into their new home. Deal Killer #4: Composition Wood Siding: Some of this type of siding is known by it's generic terms like Masonite and LP siding (there are other brands). This type of siding was (and some are still) involved in class action lawsuits. This type of siding is basically constructed from pressed and glued wood particles, some as small as sawdust. Some of the problems arise from poor installation techniques that allowed this siding to get wet. It would then start rotting and letting more water into the structure. There have been many homeowners who joined the class action lawsuits, received money to replace the siding, but instead pocketed it and put their homes up for sale. Composition wood siding companies only pay once for siding on a home. If a claim has been filed and paid out on a home, there'll be no more money coming down the pipe for siding replacement on that particular home! Deal Killer #5: Polybutylene (PB) plumbing lines: These are water supply lines that are grayish in color. The problem was that this type of piping is known to burst, especially at the seams. Many of the class action lawsuits have been closed and it may be difficult, if not impossible, to receive any money for replacement if the home you are buying has PB plumbing. Replacement cost can be in the thousands of dollars. Any good home inspector will call this out on their inspection report and likely recommend a licensed plumber to investigate. I don't know of one reputable plumber who will recommend keeping the pipes in your home. Granted, many of these Deal Killers only exist on older homes. However, especially in rural areas, we've seen these components show up on newer homes. How, I don't know unless someone had a stockpile of these materials. A pre-listing inspection by a reputable and qualified home inspector will bring these Deal Killers and other potential deal killing threats to you attention before listing your home. Playing ignorant about what is in your home (like some real estate agents recommend) will not save you from having to fork over some greenbacks before you home will sell. Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (#454) and Texas (#5824). He currently owns and operates a multi inspector firm in Houston Texas, V.I.P. Home Inspections. You can learn more about homes and home inspections by visiting his site at http://www.best2inspect.com. There are also pages about the local real estate market at Houston Real Estate
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Flipping or Fixing Houses for Profit Many real estate investors make $5,000 to $10,000 or more by flipping houses. These investors buy a home from a distressed seller and resell it quickly for a profit. The Real Estate Cycle The real estate cycle, like the business cycle, refers to the activity of the real estate market as it reacts to the forces of supply and demand.Supply and demand. Raising Money For Property Development In addition to finding the right property, one of the most difficult aspects of property development is being able to fund the purchase and re-development of the property before putting it back on the market.Many would-be property developers have the skills and flair for property development, but lack the financial clout to put these into practice. How to Create Cash Flow Out of Thin Air! Want to see a trick every real estate investor will love?From the Desk of Thomas KishCrazy as it may sound.. Grab Your Dream UK Home On The Cheap - Property Auctions Did you know that every year thousands of UK properties are sold at significantly below market value? The majority of these properties are released through property auctions where regular savings of between 10% to 40% are available to market value. Even so, property auctions continue to be used only by the elite and for the astute buyer/investor this generates a fantastic opportunity to secure a dream home/good investment at bargain basement prices. Why Real Estate Investment? Why should you invest in real estate? Well, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today. In fact, if you pay attention to recent press you will have seen numerous reports about the real estate investment craze that seems to be sweeping the Nation. Create a Great Webpage to Sell Your Home The majority of people in the UK who are looking to move house use the internet to find properties for sale. So it makes sense to ensure that your property is on the web if you want to sell. Property for Sale in Bulgaria - Emerging Property Markets 1 The latest investment property headline is this: Popular and well trodden markets such as France and Spain are out, Bansko is in.Where?Bansko, Bulgaria. Real Estate Research By Talking Real estate research might start with a look at the U.S. Selling Your Property Without An Estate Agent It is possible to save £1,000s selling your home privately and cutting out the estate agent, but what are the issues that you need to consider?Pricing the propertyPrice your property too low and you could short-change yourself from the true market value, price your property too high and you will simply put off potential buyers.Before you put your property on the market, you need to do some market research. Flat Fee MLS Listings - Is This The Future Of Real Estate Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market. FSBO - How to Prepare Your House to Sell Did you hear that? Prices of houses in Phoenix have been jumping 5% each month for 2005 according to market experts! Some even predict that the price of housing could jump an additional 10% for the upcoming year. The shortage of houses for sales and the still relatively low interest prices are causing the price of homes not just here in Phoenix but nationwide to escalate. Unravelling The Real Estate Buying Process in Canada If you're a foreign national thinking about investing in the real estate market in Canada here's a run down of the typical buying process you should expect to encounter together with a general explanation of mortgages available to assist with the purchase.First things first though, you have to find your ideal property of course!But let's assume you've done that with the help of a good estate agent and you're ready to move forward with an offer. Panama is Hot - A World Class Retirement Haven Thats Ripe For Profitable Real Estate Investment If you've followed any of the major survey agencies around the world that rate places for retirement, Panama has been on top of the list in many, and for a few years running. So, if you're looking for a place outside U. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. What Homeowners Should Know to Stop Foreclosure- Speaking Your Lenders Language Financial literacy is the means of empowering consumers to make informed financial decisions through exposure to accurate and timely information. In no other area is the void of accurate information more evident that in the area of foreclosure. Do Open Houses Work? What are the odds that you'll find your dream at a Sunday open house? What is the likelihood that your home will sell at an open house? Open houses are an integral part of the home sale business. But, do they work?There are two types of open houses. Real Estate Feasibility Study (Cost Side) - $1.2 Billion Developer Tells You How To Do One There are two sides to real estate development feasibility study: The Cost Side & The Income Side.I am going to concentrate in this article on The Cost Side. Tax Free Exchanges: Watch out for the New Residence Rules On October 22, 2004, President Bush signed tax legislation that contained a provision affecting Internal Revenue Code section 1031 (the like-kind tax-free exchange rules).Under this new provision a taxpayer who exchanges under Internal Revenue Code section 1031 into a rental house as a replacement property for a previous investor property and later converts it to his or her primary residence, is not allowed to exclude gain under the principal residence exclusion rules of Internal Revenue Code section 121, unless he/she sells the property at least five years from the date of its acquisition. How to Research and Purchase a Good Investment Property How much do you really know about investment property? Accurate research and professional expertise applied to the purchase of an investment property builds a solid foundation for financial success. You may want to work with a REALTOR who can help to identify the great opportunities in investment properties in the area of your choice.
|
||||||||||||||