Two in five of the resale houses you'll tour while shopping for a home will have at least one major defect that could cost you from a few hundred dollars to as much as $15,000 to repair.
That's not surprising given the recent Wall Street Journal study that found it may be cheaper to buy a new or fully remodeled home every 10 years than to deal with the mounting repair problems of an aging home.
Keeping a typical home up to current standards for 30 years costs almost four times the purchase price, according to the Wall Street Journal.
"It's sobering conclusion: Almost every house, no matter how recently or expertly built, is a money pit," wrote Wall Street Journal's real estate writer June Fletcher.
The 2000 HouseMaster Resale Home Deficiencies Study of 2,000 inspection reports found roofing, electrical systems, plumbing systems, central cooling, central heating, insulation, structural systems and water seepage problems among those most likely to yield defects.
And based on its findings, the Bound Brook, NJ-based HouseMaster also determined the estimated cost of repair to cure the common defects.
Roofing -- $1,500 to $5,000.
Electrical systems -- $20 to $1,500
Plumbing systems -- $300 to $5,000
Central cooling -- $800 to $2,500
Central heating -- $1,500 to $3,000
Insulation -- $800 to $1,500
Structural systems -- $3,000 to $1,500
Water seepage --$600 to $5,000
"Pressure from sellers, REALTORS and other home buyers to make a quick purchase decision is making it even more important than ever to be an educated home buyer who knows what to look out for when shopping for a resale home," says Kenneth T. Austin, president of HouseMaster.
The relatively nominal cost of a home inspection -- $250 to $500 -- can give you some peace of mind.
"If defects are found early on, buyers can factor in the cost of repair into the home purchase equation and make sure it fits within their budget - helping to avoid any post-purchase surprises," Austin advises.
Buyers can also negotiate with the seller to reduce the cost, pay for the repairs or deposit escrow monies for the repairs.
Resale Home Deficiencies
| Deficient System | Deficiency Frequency |
| Roofing | 42.69 |
| Electric | ---- |
| - System | 24.45 |
| - Aluminum Wiring | 3.28 |
| Plumbing | ---- |
| - System | 24.45 |
| - Old/Mixed Piping | 18.87 |
| - Poor Pressure | 4.89 |
| Central Cooling | 21.08 |
| Central Heating | 44.56 |
| Insulation | ---- |
| - 0-5" (Inadequate) | 30.34 |
| - 6+" | 69.66 |
| Structural | 19.05 |
| Water Seepage | 33.08 |
| Any Major System | 40.00 |
Source: HouseMaster
California Real Estate Inspection Association says it's also important that the home inspector make a professional inspection and consumers can and should look over their shoulder to make it so.
CREIA suggests:
If you have found items in your written inspection report that you fail to understand, call the inspector and ask for a detailed explanation.
If you do not find defects listed in your report that your inspector verbally noted during the inspection, call the inspector to further discuss the written report.
If you get a conflicting opinion from one of the other parties involved in the transaction, such as the agent or seller, ask the inspector for the basis of their opinion.
If you get a conflicting opinion from a contractor retained to perform corrective work on a defective system or component noted in the inspector's report, contact the inspector and ask for further explanation. Suggest the inspector speak to the contractor.
A home inspection report is not necessarily a "fix it" list for the seller. If something in the report is not to your satisfaction, however, you should discuss the issue with your representatives and the seller. The seller may be under no legal obligation to correct a problem.
If you find that the seller states that a certain item reported as defective or hazardous is not a problem and refuses to negotiate a price adjustment, it is the seller's legal right to refuse to negotiate. Accept the seller's position or look for another house.
If you feel the inspector performed less than a thorough inspection, call the inspector and share your feelings. If the inspector fails to satisfy your feelings, offer to return the inspector's written report, sign a legal waiver of action, and ask for your money back.
Published: October 12, 2000
Use of this article without permission is a violation of federal copyright laws.
 Broderick Perkins parlayed a career in old-school journalism into a
contemporary digital news service that really hits home.
The award-winning consumer journalist, originally from Wilmington, DE, is founder, publisher and executive editor of the bootstrap DeadlineNews Group, a Silicon Valley-based editorial content and consulting service specializing in residential real estate, consumer news and related editorial consulting services.
The DeadlineNews Group includes the website, DeadlineNews.com, offering real estate editorial content and consulting services, and its back shop, the Deadline Newsroom, an open house on news that really hits home.
Perkins obtained his formal journalism education from University of Delaware and a journalism boot camp, the Institute of Journalism Education at the University of California-Berkeley. He went on to 20 years of service as a daily newspaper journalist at the Wilmington, DE News Journal and San Jose, CA Mercury News.
Perkins covered housing on the San Jose Mercury News reporting team which earned a General News Reporting Pulitzer Prize in 1989 for coverage of the Loma Prieta earthquake.
He has also produced real estate, consumer and small business content for the Wall Street Journal, Los Angeles Times, RealtyTimes.com, Nolo.com, Better Homes and Gardens, the National Association of Realtors, Homestore/Move and Intuit/Quicken among more than three dozen publications.
In addition to managing the DeadlineNews Group, Perkins most recently served as chief editorial consultant for Nolo's Essential Guide To Buying Your First Home, Nolo, and writes real estate television scripts for RealtyTimes.com. |
