(800) 339-9140 or (919)303-2525 CERTIFIED PLUS HOME INSPECTIONS Raleigh, North Carolina Home Inspection Company Serving the Greater Triangle Area MONEY BACK GUARANTEE! Prices Start at $199 Raleigh North Carolina  Licensed Home Inspector #2173
RALEIGH NC HOME INSPECTION PRICES STARTING AT $199 FOR A  NORTH CAROLINA HOME INSPECTION BY A STATE CERTIFIED NC HOME INSPECTOR. STATE OF NORTH CAROLINA / NC LICENSED ASHI, NACHI CERTIFIED, NORTH CAROLINA INSPECTORS,  HOME INSPECTION SERVICES FOR ALAMANCE, CHATHAM, JOHNSTON, LEE, ORANGE, WAKE. TOWNS AND SURROUNDING AREAS  CHAPEL HILL, HILLSBOROUGH, RALEIGH, NC, APEX, NC, DURHAM, NC, CARY, NC COUNTIES. GREATER TRIANGLE AREA AND SURROUNDING TOWNS: RALEIGH - DURHAM - CHAPEL HILL - CARY - HILLSBOROUGH - CARRBORO - APEX - HOLLY SPRINGS - FUQUAY-VARINA - GARNER - MORRISVILLE FORECLOSURES AND SHORT SALE PROPERTY PURCHASES REAL ESTATE HOME INSPECTIONS By Gerald Warren Gerald Warren is the owner of Certified Plus Home Inspections in Apex, North Carolina. Gerald is a licensed home inspector in the two states of North Carolina and New Jersey and has been in real estate for over thirty years. Besides the home inspection business, Gerald worked as a licensed real estate associate and a licensed real estate appraiser and is proficient in both fields. Gerald is a member of the two prestigious home inspector organizations: ASHI (American Society of Home Inspectors) and NACHI (National Association of Certified Home Inspectors). The following article is about the purchased of distressed properties. As an investor, Gerald Warren has purchased foreclosure and short sale properties and will share with the reader important information about the purchase of distressed properties and some of the cautions that must be taken to minimize the chance of financial loss.

A CERTIFIED PLUS HOME INSPECTION INCLUDES:   PRICES - START AT $199 - The price is set according to the size of the house. Call for exact prices for your North Carolina real estate home inspection. REPORT - ON SITE SUMMARY REPORT - At the end of the home inspection, you will receive a summary report of the repairs. You are now ready to negotiate any repairs right after the inspection. MONEY BACK GUARANTEE - Our home inspectors are professionals. We are one of the few companies that offer a money back guarantee. If you are not satisfied with our home inspection, we will gladly refund your money.   APPLIANCES - All appliances that are purchased with the house will be tested at no extra charge. Appliances such as the dishwasher, stove, refrigerator and the washer and dryer.

FORECLOSURE AND SHORT SALE PROPERTY PURCHASES
AND
HOME INSPECTIONS

As a home inspector over the years I have inspected hundreds of foreclosed properties. As a real estate investor, I have purchased some foreclosed properties myself. In this article I will share with you my knowledge and experience with foreclosed or short sale properties that can hopefully help you obtain financial success with the purchase of distressed properties. For the purpose of this article, whether the property is foreclosed, a short sale, or bank owned, we will call the property distressed property. This article will cover five very important areas of a distressed property purchase:

1. The sale value of the property and the cost of repairs.
2. Realtor - a good realtor that knows value and is aware of distressed. properties for sale as soon as they come on the market.
3. The importance of a professional experienced distressed property home inspector.
4. The repairs - the type of repairs and most important, the cost of repairs.
5. The least risk type of property to purchase for financial success.

Informational links:
Home inspection satisfaction guaranteed North Carolina
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Rehab Home Information

VALUE OF THE PROPERTY

The key to success is to know value. The biggest mistake made in buying distressed property is using the “guesstimate” method of estimating home value and repair costs. With distressed property, there are two values that must be obtained: the market value of the house in its present condition, and the market value after repairs. The following is the G Warren guideline how to obtain these values as accurately as possible:

1. Realtor - Find a realtor that is a distressed property specialist. He or she is a key person in helping you find the distressed property and obtaining the true value. The importance of obtaining the services of a realtor that knows distressed property will be discussed further in the article.
2. Comparable sales - The realtor will have access to the MLS service and be able to obtain for you comparable sales to the subject property that will help you set value. Note: you only want to see what are closed sales, not current sale prices. Closed sales are houses that have sold and closed.
3. Tax comparison - Compare the taxes of the closed sales to your subject house. If they are good comparable sales, the taxes should be close. If the comparable taxes are much higher, be cautious, the comparable may be a much better house or the neighborhood is more desirable than the subject house location.
4. Internet - Learn how to use the Internet to find information about the subject house and also find comparable sales. A very good free Internet site that lists all houses and their present value Cyber homes.

Informational links:
How important is a complete home inspection North Carolina?
Licensed Home Inspector Chapel Hill, NC
Home Inspection Chapel Hill NC Home Inspector Chapel Hill NC North Carolina

THE REALTOR

As mentioned earlier the realtor is a key person in the foreclosure or short sale purchase. Hopefully you will find a realtor that specializes in foreclosed or bank owned properties. That realtor will know where to locate the best property for sale in the distressed property market. A good realtor will know and help you with the following:

1. Knowing where the foreclosed sales are located and when new distressed sales come on the market
2. Having access to the multiple listing services which lists all properties on the market for sale and the properties that have sold and closed. The properties that have sold and closed are called comparable sales. These are the sales that will help you judge the value of the distressed property you are evaluating for purchase.
3. Knowing the best bank or mortgage company that is lending money on distressed properties.
4. Being able to recommend some contractors and repair people.
5. Writing the offer to purchase and present the offer as soon as possible. This may not sound important, but good deals don’t stay on the market too long. In other words, don’t lose a good deal because you were a day late with the purchase offer.
6. Knowing the attorneys that are familiar with, and know how to handle, distressed sales.

Many people think that the realtor just shows a house and collects a nice commission. I can tell you first hand as an investor, this is not true. Realtors work very hard. Most buyers never see the investigative work and the physical hours spent showing houses, not to mention the weekend work, the office work, and the follow-up work after the sale. A good knowledgeable realtor works very hard and is a very valuable person to help and guide you with the purchase.

Informational links:
How to prepare for a Home Inspection North Carolina
Certified Home Inspector Buckhorn NC
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THE HOME INSPECTOR

A certified, professional, experienced home inspector is a must for a distressed property inspection. Hiring an inspector that has limited experience inspecting distressed properties could be a financial disaster. I say this because problems and repairs are found in a distressed property inspection that are seldom encountered in normal occupied home inspections. The three common mistakes a buyer makes when dealing with the inspection of distressed properties are as follows:

1. Not having the property inspected at all.
2. Hiring an inspector at the lowest price instead of hiring for knowledge and experience.
3. Asking a friend who is a contractor to take a general overall look at the property.
4. When it comes to distressed property, a general overall inspection is not good enough. This type of property needs a very thorough detailed inspection by a licensed inspector that is trained and experienced in the fields of structure, electricity, plumbing, heating and water intrusion. A licensed home inspector will inspect and give a written report covering an evaluation of three hundred inspected items. Certified Plus Home Inspections will give a very detailed report with photos of the repairs. With this detailed report, the buyer can proceed to obtain repair cost factors which will be the deciding factor whether or not to purchase.

Informational links:
Certified Plus Home Inspections North Carolina
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TYPE OF PROPERTY

The type of property purchased should depend on the buyer’s level of knowledge of real estate, the buyer’s ability to make repairs, and the buyer’s risk factor level. The following is a guide to help you with your purchase of a distressed property. Hopefully this will minimize risk and lead to financial success. Even though there are many types of distressed properties, for the purpose of explanation we will put them into three different categories: The Clean House Purchase, The Marginally Conditioned House, and The Complete Renovation House.

Informational links:
Red Tag Repairs Home Inspections North Carolina
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The Clean House Purchase

The clean house purchase is a distressed property that is in move-in condition without any major repairs. This is the house that everyone wants at a great low purchase price. Most of the time, this type of distressed sale property is in the quick sale category. In other words, the house is headed for foreclosure and the owners are selling the house at a good price to avoid foreclosure. This is the house that everyone wants, therefore, the competition is great for this type of purchase and the house usually sells quickly. From my experience, to be successful with this type purchase and not waste a lot of time, the following is suggested: know value so you are sure of what you are buying, and set up your financing ahead of time so you are ready to purchase right away when the deal comes along. Many times, the person who can close right away gets the deal even when his offer is not the highest. In these times, when mortgage money is difficult to obtain, you may not be able to set up the complete financing; however, one can still speed up the mortgage process by:

1. Talking to your bank to find out their requirements. Don’t assume that all banks and mortgage companies have the same requirements.
2. Asking your realtor to recommend a bank or mortgage company. The realtors know which banks are lending and the ones that require very stringent conditions and documentation.
3. Checking your credit report and cleaning up any negatives that may be on the report.
4. Paying off credit cards.
5. Not buying that new car or going into heavy debt. It could hold you back from obtaining the mortgage.

Informational links:
What’s included in a Home Inspection North Carolina
Certified Home Inspectors Hillsboro NC
Home Inspections Hillsboro NC Home Inspectors Hillsboro NC North Carolina

The Marginally Conditioned House

The marginally conditioned house is a house that needs repairs but is structurally sound. In other words, it is a house that doesn’t need professional contractors, but one that the average handyman can handle. Before purchasing this type of house, the services of an experienced certified home inspector is imperative to make sure that there are no structural problems. Again, all the recommendations mentioned for the clean house purchase also applies to the purchase of a marginal house. There are two cautions with the marginal house purchase that must be considered before purchasing:

1. Skill Level - Do you have the skills to make the repairs or will you be hiring contractors to do the repairs? If you are hiring contractors, you should add at least 20% to the estimated cost for the MAW factor. My wife defines the MAW factor as the “Might As Well” aspect in making improvements. In other words, when a repair or improvement is in process, we Might As Well make an upgrade or improvement while the repair is being done. A quick example of a MAW factor would be installing a widow for more light while the wall is being repaired. To do it at another time would cost more money than doing it now so you Might As Well do it now.
2. Time Factor - Even though you may have the skills to make the repairs, do you have the time? Working a full time job and making home repairs yourself as well is a tough job. I am not talking about painting and cosmetic work; I mean the real repair work, like renovating walls and ceilings, or installing floors. Assuming that you are going to live in the house, the following is what I have found to be a reasonable time schedule for the repair work.

1. Two months - The house is made livable; not perfect but livable
2.  One year - The house is livable and comfortable, and the interior is completed with new paint and floor covering.
3. Two years - The house is beautiful, the way you want it, with the interior and exterior complete. Now you are working on some special projects to improve the value of the home. For example, you may want to install a deck or put in a patio for those summer outdoor barbeques.
4. Purchasing a house that would fit into the above time schedule can be a financial success and be challenge and a pleasure. I mention the time factor because I know couples that are doing the work themselves and have underestimated the repairs and are still repairing the house after five years. Needless to say, they are fatigued, discouraged and have run out of resources to finish the repairs.

Informational links:
What every home buyer should know North Carolina
Licensed Home Inspectors Hillsborough NC
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The Complete Renovation House

This type of house is for the professional contractor with a work crew and equipment to handle a complete renovation. This house usually has a very low purchase price but it also has the most repairs, many of them structural. We recommend that this type house be left to the professional contractors for two reasons:

1. The contractor has the manpower and resources to renovate the house.
2. The house can be renovated and sold or rented in a timely manner.

Caution: If you decided to handle this type renovation by yourself and a few friends be very carefully not to fall into the time and resource trap. Make sure you have the ready capital to handle the job and the manpower to finish the job in months; not years. The last thing you want is a house half finished that is just eating money because, in its present condition, it is not saleable and you have exhausted your resources.

Informational links:
Structural Home Inspections North Carolina
Certified Home Inspectors West Hillsboro NC
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Rehab Home Information

THE SAFEST TYPE OF DISTRESSED PROPERTY TO PURCHASE

The safest property to purchase is the property that has no structural problems. Any property can have structural problems, but as an investor I have found that the safest bet is a condo or townhouse under 20 years old. This type of distressed dwelling usually has only cosmetic repairs, bathroom leaks, or heating or air conditioning problems. This is not to say that the repairs are low cost, but that the problems can be corrected quickly by contractors. And, the unit is livable, rentable, or ready for sale if it’s an investment. The bottom line is, the profit may not be as great as a private home but it’s usually a safer investment with less problems.

Informational links:
Get a complete home inspection NC
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FORECLOSURE REPAIR COSTS

Let me say up front, not all foreclosed properties are in poor condition; some are well maintained and in very good move-in condition. This article is not written to scare a buyer away from purchasing distressed properties, but rather to inform the potential buyer of a distressed property that is not in the best condition and of some of the pitfalls and repair problems that may be encountered.

Buying a foreclosure can be a high profit investment or it can be a financial disaster if the repair costs are underestimated. Knowing the exact repair costs is the key to success with distressed properties. Most foreclosures are sold “as is” which puts all the repair costs on the buyer. Don’t fall into the trap of falling in love with the house and taking the repair cost lightly without getting exact repair cost figures. Remember “You are the one who pays all costs.”

When the home inspector reports necessary repairs, get a professional estimate as to the exact cost of the repairs. Many times the big home supply stores like Home Depot, Lowe's, and Sears will give free estimates on big repairs. Sometimes a repair that doesn’t appear to be a major problem turns out to be a very expensive repair. For this reason, we recommend that the buyer should always get a professional repair cost estimate.

Informational links:
Red Tag Repairs of Different Style Houses NC
Triangle Area Home Inspectors Durham NC
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FUNCTIONAL UTILITIES

Before you hire a home inspector, make sure all the utilities are on and functional. The utilities include the water, the electric, and the heating system. Even if one of these systems is not functional and not inspected it could be very costly after the purchase. The bottom line is, make sure all the utilities are functional before you hire a home inspector. Remember, “You are the one who pays all costs.” It would be wise to live by the rule that the house can’t be inspected unless all the utilities functional, walk away. Don’t set yourself up for a five thousand dollar surprise after the purchase because one of the utility systems and/or equipment was not inspected.

Informational links:
Get a Full Complete Inspection North Carolina
Triangle Area Home Inspectors Holly Springs NC
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WATER INTRUSION

Uncontrolled water intrusion into the home is the number one damaging problem to any home. In plain English, uncontrolled water is the enemy. Uncontrolled water can do some serious damage such as, rot wood, crack foundation walls and floors, create moisture and mold problems. In fact given enough time, uncontrolled water can destroy anything in the interior and on the exterior of a house. In a house that has been vacant for while, water damage is the main repair problem. The most susceptible areas for water intrusion and damage is, the roof and attic, the basement and crawl spaces, plumbing leaks, and, of course, the interior ceilings, walls and floors. With a Certified Plus Home Inspection you can be assured that these areas will be inspected very carefully and a complete inspection report given to the buyer so cost factors can be obtained. I have added some quick stories below about some water problems found at distressed property home inspections.

• Washing machine hoses - The water was turned on for a home inspection that was to take place two days later. During the two days a rubber water supply hose to the washer burst open and flooded the dwelling for two days. Needless to say the damage was extensive.
• Sump pump - This was a vacant house for many months. The electric was turned off for non payment, which rendered the sump pump non functional. When we arrived for the inspection there was three feet of water in the basement that had destroyed the furnace, the hot water heater and created foundation structural damage.
• Roof Leak - There was a small roof leak in this house that probably went undetected for years simply because the only access to the attic was through a small ceiling hatch in a closet. When we inspected the attic we found a black mold-like substance everywhere, which as per the mold inspection company, was a serious type mold that would require extensive clean up.

Informational links:
Water intrusion into the Home North Carolina
Triangle Area Home Inspectors Cary NC
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STRUCTURAL PROBLEMS

Mostly all structural problems are created by uncontrolled water. As mentioned earlier, there are three areas that are most prone for water intrusion, the roof and attic, the basement, or a crawl space. These areas will be given a very careful consideration and should be inspected at the beginning of the inspection to determine if there is serious damage.

• Roof - An uncontrolled roof leak can do some serious damage. It can destroy the roof sheathing, wood rot the structural beams in the attic and eventually destroy the ceilings and walls.
• Basement - Structural damage in the basement is most always caused by water intrusion into the basement or water that undermines the foundation walls or floor. Now for a surprising fact: foundation structural damage many times is caused by rain gutters discharging hundreds of gallons of rain water alongside the foundation walls. The water undermines the foundation and causes the foundation floor and walls to settle and crack. It is estimated that one inch of rain can discharge 800 gallons of water off an average size roof.
• Crawl spaces - Besides water damage from direct water penetration caused by poor drainage, the crawl space can be damaged by high moisture content. Moisture in the crawl space is usually caused by dirt floors without a moisture barrier, and poor ventilation of the crawl space. Besides doing structural damage, water intrusion can also create environmental and health problems in the form of mold.

Informational links:
Structural Problems Means Expensive Repairs North Carolina
Triangle Area Home Inspectors Apex NC
Home Inspections Apex NC Home Inspectors Apex NC North Carolina

MOLD

Mold is created by water penetration and moisture in the dwelling. Mold inspection or testing is not included in a home inspection, however, if a mold like substance is observed, Certified Plus Home Inspection will enter it in the report as a courtesy report to alert the buyer there may be a mold problem. The following is a good tip-off that there is mold in the dwelling: If the inspector and the other people at the inspection start to cough and get sore throats while inspecting, there is a good chance that there is a heavy mold concentration in the dwelling. When this happens, the inspector will start looking in hidden areas like the attic, the basement or crawl space, behind paneling, bathroom walls and a host of other places. And, if a mold like substance is noted, to protect the buyer, the inspector will recommend a complete mold inspection before purchasing the property.

Informational links:
Home Safety Tips see Mold Section North Carolina
Triangle Area Home Inspectors Morrisville NC
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VANDALISM AND THEFT

If any of the doors are open or won’t lock, it’s a sign of vandalism, theft or an intruder. When any doors are non-functional, the inspector will make a visual inspection of the complete house before starting the detailed inspection. He will be looking to make sure that all the kitchen and bathroom fixtures have not been removed, and the heating and air conditioning systems are in place and ready for inspection.

If there has been a theft of equipment or fixtures or any destruction from vandalism the inspector will recommend the following:

First - Notify the bank, or owner of the property that there has been a theft or vandalism so they can notify the police and investigate the matter.

Second - If you’re still going to purchase the property “as is” regardless of the stolen equipment or vandalism, obtain the exact replacement and/or repair cost before the purchase. Don’t fall into the trap of guesstimating the replacement/repair cost only to find out later that the replacement/repair cost is double or triple what you estimated. Always remember “You are the one that pays all costs.”

Informational links:
How to prepare for a Home Inspection North Carolina
Triangle Area Home Inspectors Garner NC
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ANIMALS

It is very easy for animals (such as squirrels, raccoons, birds, bees, mice and others) to take up residence in a vacant house. Usually animals will be found in the attic, basement, crawl space or under the porch or deck. Animals should not be a deal-killer. We mention animals because of the extra cost involved in getting rid of the animals. Most times when animals are found, a critter control expert has to be hired to remove the animals from the home or property.

 

Informational links:
Walk Through Vacant House Inspection NC
Triangle Area Home Inspectors Raleigh NC
Home Inspections Raleigh NC Home Inspectors Raleigh NC North Carolina

To find foreclosures in your area go to www.foreclosures.com.

All About Home Inspections from A to Z - National Association of Certified Home Inspectors

Triangle area towns -Raleigh, Durham, Chapel Hill, Cary, Hillsborough, Carrboro, Apex, Holly Springs, Garner, Fuquay-Varina, Morrisville, North Carolina, all home inspections will be conducted to the American Society of Home Inspectors standards (ASHI ). All inspections will be conducted by a licensed, certified, insured professional NC home inspectors - Raleigh, NC.

In North Carolina, all home inspections will be conducted to the American Society of Home Inspectors standards (ASHI). All inspections will be conducted by licensed, certified, insured, professional NC home inspectors. Licensed North Carolina Home Inspectors serving: Alamance County, Chatham County, Johnston County, Lee County, Orange County, Wake County, towns and surrounding areas for Apex, Cary, Chapel Hill, Durham, Hillsborough, Raleigh. Carrboro, Holly Springs, Garner, Morrisville, Fuquay-Varina.

Licensed North Carolina Home Inspector Serving: Licensed North Carolina Home Inspector Serving: Alamance County, Chatham County, Johnston County, Lee County, Orange County, Wake County. Towns and surrounding areas for Apex, Cary, Chapel Hill, Durham, Hillsborough, and Raleigh.

DISCLAIMER

The information contained on this site/article is for general  information only.  Anyone using information obtained from this site/article has the responsibility to obtain professional advice on your particular problem or circumstance Certified Plus home inspections LLC. disclaim all responsibility, including negligence, for all consequences of any person acting on, or refraining from acting in reliance on, information contained in this site/article.  The laws and regulation undergo frequent changes and the fact that there is a  multitude of items covered under the  “ Grandfather Clause ”, anyone using this information , should first obtain professional advise on your particular circumstance before using information from this site/article.  Note - Due to the fact that every home inspection is unique, and many of the items mentioned in this site/article may be inaccessible, covered with wall covering, storage, etc. Certified Plus home inspections LLC. gives no guarantee, or promise, expressed or implied,  that every/any item mentioned in this article will be inspected or addressed in a home inspection.  Any home inspection conducted by Certified Plus Home Inspections LLC, the actual home inspector’s  report supersedes any information contained in this site/article.