Buying a new home is a thrilling experience and the biggest investment for a majority of people across the globe. Purchasers concentrate on customizing their home with cozy interiors like paint, tops, floor covers, etc. This excitement of buying a new home may lead to neglect of the aspect of a home inspection to your new home. Home inspection consultation is a mandatory part of the homebuying procedure that can benefit you by saving loads of time and money in the future. A home inspection consultation from reliable service providers can offer unparalleled understandings of the property’s construction, along with an opportunity to avoid costly repairs on the home in the long run.

What Is a Home Inspection Process?

A home inspection is the process of evaluation by third-party evaluators that examine the structure of the home, appliances, systems, and all other crucial features. Home inspection consultation experts will examine the property, report on their findings. This will be your report card to contact the seller or builder to repair any unforeseen problems before finalizing the deal on your home or if you are the owner during the construction of a new home. A home inspection can make sure that you are getting a hassle-free and secure property, your investment is streamlined and you don’t have to deal with any kind of huge repairs when you move-in to a new home.

Top Reasons Why You Need to Consult a Home Inspector Before Moving into a New Home:

New Homes:

A new home would consist of several newly installed parts. If you take a look at all the different persons who play their role in crafting your new home you will understand the aspects involved in constructing a new home. Hence, if the issues are identified during a home inspection, it will let the builder or homeowner correct them before moving in. This will ensure the safety of your family by addressing the major issues in the newly built home. There may be some minor touch-ups that will be required after you move in, but there will be no hassle of major works during your residence.

Some common problems that are initiated during new construction home inspections are:

• Leaks in windows and walls.

• Cracks in the foundation, poor grading, and framing.

• Drainage problems that may lead to structural problems in the future.

• Loose connections or improper functioning thermostats.

• Electrical issues like wrong wiring outlets, exposed groundings, and absent switch plates.

• Plumbing problems including wrong piping, leakages, and many more.

Clear Your Doubts:

A Home inspection consultation will give a chance to the buyer to clear their doubts by asking questions to the inspectors. You may want to ask about the durability and quality of some appliances and various functional parts. While they may not be able to accurately guarantee the lifespan of these appliances or parts, their suggestions will aid you to ask the builder to replace the items or make impactful decisions as a homeowner. They may also advise you of certain maintenance tips once they finish the inspection procedure that will be beneficial if you are buying the home for the first time. You will get a clear explanation regarding the deviations of your home design and other parts.

Allows You to Avoid Judging the New Home by Looking with the Naked Eye:

Some people may find home inspection to be a waste of money, especially for new homes. But it is evident that regardless of whether a new home or buying a used one, there will be some issues that may be hidden from the builder or homeowner. You may want to get an expert opinion on the various aspects of house wiring, plumbing, structural problems just to be sure about the complete process. Adding to this, if you are looking to build on the interior, then you will get a preliminary report on all the other crucial elements.

The Builder’s Inspection May Not be Beneficial for You:

Many builders will hire their home inspectors when the new homeowners arrive at the site to look for potential problems. These home inspectors that are invited by the builders, will be paid by them, that can lead to being partial in their process. An inspector working for builders in the interest of them might not pay attention to all the important aspects. There may be some builders who will not want to allow any other home inspectors on to the new home. You may have to agree to allow your home inspector to the new home before making the deal and also include all the important points that are given in the home inspection report.

Negotiating the Price of the New Home:

As the process of the home inspection is done, a home inspector will give you a comprehensive report aiding you to decide if your investment is in the right direction. It will give you a clear view of the mistakes and limitations of buying the property that will come in handy while negotiating the price for your home. Hence, the majority of new home buyers take the aid of inspection services to know the worth of the property depending on the condition and geographical location. You will have proof of all the material and structural conditions in your hand while you strike the deal.

Bottom Line:

New construction home inspection consultation lets you be upbeat about your new home purchase. A timely home inspection can let you get to the root cause of the actual problem and repair it completely before its complete damage. Get an inspection from MY Home Inspector Pro who specializes in an existing home, Commercial property, new home construction, and pre-listing inspections. We cover comprehensive home inspection consultation and provide a report that includes a comprehensive analysis of the home, with pictures and a summary of safety items as well as things demanding repair or replacement.

Buying a vacation home comes with both rewards and risks, including the possibility that if you plan to rent the home for income, you may not earn enough to offset your expenses. That’s why it’s crucial to crunch the numbers carefully and estimate the cost of owning a vacation home before investing in a property.

What are the costs of owning a vacation home?

The price of owning a second home can be steeper than you think. There are recurring costs that must be factored in, as well as unexpected expenses such as a sudden breakdown of an appliance or major system.

What’s more, if your rental income stream is interrupted, overall ownership can be more costly than expected.

Here’s a breakdown of some of the major costs.

The mortgage — with a chance of increased interest

Your biggest expense is likely to be your monthly mortgage payment, not including homeowners insurance and property taxes.

“Usually, a second home mortgage will run about 0.5 percent to 0.75 percent above the interest rate you’d qualify for on a primary residence,” says Polina Ryshakov, a real estate economist and director of valuation at Sundae, a San Francisco-headquartered residential real estate marketplace that helps sellers of distressed properties.

So, let’s say you do your homework, scout around and pick what looks like a nice vacation property in sunny Tallahassee, Florida. The home price is $300,000. Your lender requires you to put down 25 percent (a higher-end estimate), or $75,000, on a 30-year fixed-rate loan, and your interest rate is 3.75 percent — about 50 basis points higher than what you’d likely pay for a primary residence. In this scenario, your monthly principal and interest payment would be $1,042.

Costlier homeowners insurance

In addition to your monthly mortgage payment, the cost to insure your second home may be higher than for your primary home.

“The location, type of property and amenities will all affect your insurance costs,” says Chris O’Rourke, vice president of property claims at Mercury Insurance in Los Angeles. “The factors that make your location desirable may also be the things that make it more expensive to insure. For example, a beach home is more exposed to wind damage or hurricanes, or a mountain lodge is at greater risk for wildfires.”

Keep in mind that you may need special insurance coverage — like landlord insurance — if you plan on renting out your vacation home. This can also increase your premiums and deductible, O’Rourke adds.

Property taxes

As with a primary residence, you’ll pay property taxes on a vacation home, as well. This can vary widely by state and county or region. Using the previous example, you may pay around $3,100 in annual property taxes in Tallahassee (where the county tax rate was 1.04 percent in 2019, according to ATTOM Data Solutions) compared to the average national property tax of $3,561 (1.14 percent).

There are other taxes to consider, too, including income tax and sales and lodging tax. The combined sales and lodging tax rate for a second home in Tallahassee is estimated to be 12.5 percent, according to MyLodgeTax.com, which provides lodging tax rates in each state.

Home repairs and upkeep — even when you’re not there

A vacation home needs upkeep just like any property, from lawn care, furnace tune-ups and a fresh coat of paint to gutter cleanings or caulk replacement. The labor and materials required to maintain your residence can add up quickly. Generally, experts recommend setting aside 1 percent of the total purchase price of the property for home maintenance each year. On a $300,000 vacation home, that would equate to $3,000 every year.

Your second home will eventually require repairs and replacement of key items like appliances, lighting and plumbing fixtures or the HVAC system. Because the things that require repair often break down unexpectedly, you may not have the time or bandwidth to shop around for the best price on a service provider or contractor. In other words, repairs can sometimes be more painful in the pocketbook than you anticipate.

Many experts suggest also budgeting 1 percent of your home’s total purchase price for repairs. To be extra safe, it’s wise to salt away up to 3 percent for a combined maintenance and repair fund.

Managing the property

Unless you plan to monitor your vacation home (and if you’re renting it out, managing and booking the rentals) yourself, which can be close to a full-time job depending on the location and demand, it’s often best to hire a property management service.

“Expect to pay 14 to 35 percent for these services, based on your market, plus potential fees,” says Sarah Kruse, a Portland, Oregon-based real estate agent with Weichert Realtors specializing in vacation homes. “Price around and know what you’re paying for. If you go with a budget company, you’re likely to get budget-level care.”

Security

Because you may not be there as often as you would at your primary residence, it’s smart to beef up your second home’s security. That means buying and installing equipment like a video doorbell and outdoor cameras, as well as a home alarm system that’s centrally monitored (meaning it will alert local police if a breach occurs).

Equipment costs vary, but are generally more expensive if professional installation is required, and 24/7 monitoring services often require a monthly or annual subscription that can equate to several hundreds of dollars a year.

Decor and furnishings

On top of all these costs, don’t forget about expenses associated with furnishing your property. Furniture and decor such as a bedroom or dining room set and outdoor furniture can quickly set you back a few thousand dollars. Plus, these items wear out quicker if you’re hosting lots of short-term rental guests every year.

“Always ask about buying a furnished vacation home,” recommends Ryshakov. “Fortunately, sellers in many vacation markets often list homes with all the furnishings included.”

Pros and cons of owning a vacation home

Owning a vacation home can be costly, but you might consider purchasing and managing it as a joint venture with relatives or friends, which can lower your risk. You may also be able to deduct many expenses on your tax return.

According to Kruse, buying a vacation home is a great way to own your very own piece of paradise.

“It can be a place where family and friends build lasting memories together. This home could end up being your retirement home down the road. And it could be a great investment opportunity if you rent it out while you’re not there,” Kruse says. “Rental income could cover your mortgage and the costs of your annual vacations. In some markets, you might even make a profit above and beyond covering these costs.”

However, Ryshakov notes that owning a vacation home doesn’t always make sense for everyone.

“Depending on the market, second homes historically often don’t appreciate in value as desired due to lack of nearby growing economies. Plus, the pandemic has limited owners’ ability to earn short-term rental revenue,” Ryshakov says.

Also, vacation homes can be more challenging to finance than primary homes.

“Lenders often expect a down payment minimum of 30 percent on second homes,” Kruse says.

How to prep to buy a vacation home

There are several steps involved in finding and purchasing a vacation home. If you’re considering buying a second home, Kruse has the following tips:

• Scrutinize your finances and calculate what you can afford.

• Choose a skilled real estate agent experienced with vacation properties who can help you locate the best deals.

• Look at markets carefully. Is the property near water or a beach, which many vacationers prefer? Will it snow in the colder months? Is the property near coveted amenities? Is it served by accessible roads and a nearby airport?

• Get the home professionally inspected.

• Shop around for lenders — you may get the best deal with a local lender from the market you’re interested in. Compare rates, down payment requirements and terms prudently, and calculate your total closing costs so you know your complete financial investment before purchasing.

Written by By Erik J. Martin Bankrate.com

Featured image by Carol Yepes of Getty Images

Spring is just around the corner and there are things you need to do to get your home ready for spring and the possible flooding snowmelt can bring.  Wet basements can damage walls and flooring, ruin photo albums and become a breeding ground for molds and inspects.

The first question is…where is the water coming from?  Could it be from surface water running down foundation walls, or from groundwater being pushed into the basement from water-saturated soils? Are the gutters damaged from winters ice?

The first time you experience basement water problems, check for surface water draining against the foundation.  If water is coming in at only one location from the exterior foundation wall, you are most likely experiencing a surface water problem.

GUTTERs

Managing water run-off from your roof is the most effective method to prevent a wet basement.

Are gutters overflowing because they are blocked with leaves?

Does the home have enough downspouts?   If not, add another one, or increase the size of the downspout.

Do the downspouts extend 10 feet from the home?

Have paved areas next to the home settled and now slope towards the house?

Are joints properly sealed where the pavement abuts the house?

SOIL GRADING

Does the ground around the home slope away at least 10 feet?

Are there depressions in the ground next to the home?

Do the sprinklers hit the home?

SUBSURFACE GROUNDWATER 

Hydrostatic pressure pushes water through hairline cracks.  Just think of your basement as a boat on a pond.  Any cracks or holes in the boat would take in water.  Basements react the same way.

DRAINAGE SYSTEMS

A perimeter above-slab gutter system installed at the base of the exterior foundation walls on top of the floor slab is one option. It doubles as a base material for the wall.

A below slab perimeter drainage system. The below slab system requires the partial removal of the concrete floor slab and installation of drainage pipe.

And sometimes, something as simple as a sump pump can handle the job.

If you are experiencing water intrusion in your basement, you may want to consult an experienced contractor to determine the best application of these ideas for your home.

Consider an Annual Home Maintenance Inspection

Annual Home Maintenance Inspection

Even the most vigilant homeowner can, from time to time, miss small problems or forget about performing some routine home repairs and seasonal maintenance. That’s why an Annual Home Maintenance Inspection will help you keep your home in good condition and prevent it from suffering serious, long-term and expensive damage from minor issues that should be addressed now. We recommend having an Annual Home Maintenance Inspection performed annually for your primary residence and any investment properties you own.

The most important thing to understand as a new homeowner is that your house requires care and regular maintenance. As time goes on, parts of your house will wear out, break down, deteriorate, leak, or simply stop working.

But relax. Don’t get overwhelmed. You’re not alone. We can help you with maintaining your home. Consider hiring us to come back in about a year to perform an Annual Home Maintenance Inspection. We’ll show you what you should look for as a smart homeowner.

Homeowners Yearly Checklist:

Change the batteries in smoke detectors and carbon-monoxide alarms. Change furnace and A/C filters. Check fire extinguishers. Clean out gutters and downspouts. Call the chimney sweep. Check all window seals. Check the attic and basement for leaks. Check the dryer and other vents for debris.

What’s Included in Your Annual Home Maintenance Inspection?

We will inspect for any problems you may be concerned about, as well as the: roof system, including the chimney & all roof penetrations; gutters & downspouts; grading & drainage; walkways & driveway; garage doors, safety sensors & openers; exterior cladding; deck, stoops, porches & railings; windows & doors; attic, insulation & ventilation; heating system; cooling system; plumbing system; drainage sump pump with accessible float; electrical system; fireplace damper door & hearth; ceilings, floors & walls; basement, foundation & crawlspace; and much more!

Schedule your Annual Home Maintenance Inspection! 

More tips to get your home ready for spring:

2. Check the window wells for any blockages or blocked drains. When window wells become blocked, rainwater accumulates, and you will have water damage in your basement. Cleaning out window wells is an easy step and will save you from a flooded basement.

3. Gutters and downspouts need to be inspected. In the spring, gutters need care because of the ice and snow that covered them all winter. Walk around your home and check gutters from the ground, you will be able to see if something has come loose. Also, to make sure water is making its way out of the downspouts and away from the foundation, get out your ladder and climb on the roof when it is safe to check for any clogs in the drainage system. Check for cracks in your foundation, patio, and walkways. Cracks will allow water to get into your house and cause damage. Fill these cracks as soon as you can to avoid paying for repairs after spring rains. Also check for water pooling around your foundation as this could cause water damage inside.

4. Winter is always hard on roof shingles. After the snow is gone from your roof, check your shingles and chimney to see if there is damage. Fix loose, cracked shingles before the summer heat hits and causes more damage.

7. Move stored items away from your foundation and house. Stacking firewood up against your house may have been a good idea in the winter, but when spring comes, that damp wood could cause damage to the siding on your home and breed a variety of insects including termites.

8. Spring is the best time to clean your furnace, check your smoke and carbon monoxide detectors, and examine the dryer vent for lint buildup. Clean your fireplace chimney and repair any cracks in the fireplace.

9. Check the faucets on the outside of your house. Freezing temperature can cause damage to these faucets. Turn them on and off and check for the water flow. Make sure your faucets don’t drip after you turn the water off. Watch for damage inside the pipes when you check water flow. If the water isn’t flowing like it did last summer, you may have damaged pipes. Have them inspected and repaired before you need the water for your lawn and garden.

10.Have your air conditioning unit checked out. If there are problems, you can get them fixed before you need air conditioning in your home.

Don’t forget to investigate flood insurance for your home. If you have flood insurance, you will have a bit of security for your basement, crawlspace, and walkout basement when the spring flooding comes.

By being proactive now, you can prevent costly repairs in the future.  And if you are looking to sell your home, a pre-listing inspection can offer several benefits and give you the maximum selling price for your home.

Doing a pre-Listing Home Inspection before you put it on the market can help you identify any problems that could potentially derail a sale at closing like identifying possible deal killers ahead of time, eliminate bargaining points, give you time to fix problems that could potentially delay or kill the sale and speed up closing by eliminates surprises.