As a home seller, I despise the entire home inspection business.   A potential buyer is interested in your house, you execute a contract, they engage a home inspector.  The inspector comes out and the buyer receives a copy of the inspection and the resulting negotiations to complete repairs and reduce the price would have you believe the house should be condemned.   Nowhere is there any obligation to share the report with the seller.  Nowhere is there room to object to any of the findings.  Nowhere is there room  to correct errors.   I’m amazed any houses ever get sold.

How did we get to this point?  In Texas, home inspectors are licensed and regulated by TREC, the Texas Real Estate Commission.   There are 3 levels of inspector, Apprentice, Real Estate Inspector, and Professional Real Estate Inspector. 

An Apprentice is entry level and is required to train under a Professional Real Estate Inspector.  After gaining experience and certain educational requirements, the Apprentice can sit for the Real Estate Inspector exam.  To be a Professional Real Estate Inspector you must be a Real Estate Inspector first and meet additional experience and educational requirements and pass the exam. 

Appraisers are required to follow a Standards of Practice “which provides the minimum standards an inspector must follow when inspecting a house”.  The Standards of Practice lists the minimum requirements for real estate inspections.  Per the Standards, “For the purposes of these standards, an inspection is a limited visual survey and basic performance evaluation of the systems and components of a building using normal controls that provides information regarding the general condition of a residence at the time of inspection.  It is not intended to be comprehensive.  It does not require the use of specialized equipment including thermal imaging equipment, moisture meters, elevation determination devices”.

The Standards go on to say, “These standards do not prohibit an inspector from providing a ‘higher level’ of inspection performance than required by these standards of practice or from inspecting components and systems in addition to those listed under the standards of practice”. 

Therein lies the problem.  Home inspectors compete for buyers, so they boast about how rigorous their inspections are.  Identifying the most deficiencies and problems on their report makes them look more thorough and diligent than their competition.  They reach for anything that might be or might have been.

For instance:

1)  It is not uncommon for an inspector to flag a house for having low water pressure.  (City water pressure varies hourly depending on the height of water in water towers). 

2)  I was recently flagged for having a 40 year shingle roof that he recommended be replaced even though 3 roofing companies told me otherwise and the insurance company said there is no damage, there is no leaking, and it was unnecessary to replace at this time.  

3)  If there is any distortion to a wood floor, you will get flagged for possible underground water leak. 

4)  If your HVAC is older than 8 years, they will recommend replacing the HVAC system.   

5)  Oh, and the big one.  If you have aluminum wiring that is properly pigtailed, you may get flagged to replace all the aluminum wiring in your house and have it replaced with copper because you run a substantial risk of dying when your house burns down. 

(The International Association of Certified Home Inspectors actually quotes in their Facts and Figures, “On April 28, 1974, two people were killed in a house fire in Hampton Bays, NY.  Fire officials determined the fire was caused by a faulty aluminum wire connection at an outlet)

1974!  Seriously?

Those are just the big things.  At this point, the buyer is led to believe they will have an immediate repair bill of $30,000-$40,000 the day they close.  Unsurprisingly, they are probably down the street looking at the next house.  

Yes, these are big items.  Yes, they ultimately need to be replaced when they break or no longer function.  But no one in their right minds replaces big ticket items before they cease functioning.  The fear inspectors instill in buyers needs to be controlled. 

How can this be changed? 

1)  Sellers need to be allowed to provide feedback on the report to the inspector before a final report goes to the buyer;

2)  Sellers need to be allowed a copy of the final report;

3)  Delete Section 7 of the TREC Seller’s Disclosure Notice;

4)  STANDARDIZE the methodology for all appraisers.  

In 26 select submarkets in the DFW area, overall sales increased 11.2% from July 2018 to July 2019.  16 of those markets had increased median prices vs 2018., and 8 decreased median price.  6 submarkets improve by more than 10% and only one showed a decrease greater than 10%. 

Days on market for sales prices between $200,000 and $300,000 generally increased as did days on market for homes between $300,000 and $500,000.  

The following information is provided by The Real Estate Center at Texas A&M University.  All links contained in this blog will redirect you to their website www.recenter.tamu.edu

Since extreme winter temperatures and winds can take a major toll on buildings in cold weather regions, it is important that property managers take the necessary steps to winterize rental properties before the first snowfall of the season. Doing this will ensure that you will have to spend less time and money on plumbing, roofing, and other repairs come spring.

If you need a little help getting started, have a look at our list of the top things to do to get your rental properties ready for winter.

1. Leave the Heat On

Remind your tenants to maintain a minimum temperature of  55 degrees Fahrenheit when they go on vacation. This will prevent the pipes from freezing and bursting due to the cold temperatures.

2. Inspect Your HVAC Systems

Inspect the heating and air-conditioning systems in your units to make sure they are running efficiently. Arrange for the filters to be replaced if necessary.

3. Watch Your Pipes

Completely drain out the outdoor pipes and sprinkler/fountain systems to ensure they don’t freeze in sub-zero temperatures. As an added precaution, winterize exterior plumbing and pipes in unheated parts of the property or common areas such as clubhouses by covering them with inexpensive foam pipe insulation.

4. Look for Cracks

It's important to inspect the edges of doors and windows and the exterior walls of your properties for gaps or cracks through which heat loss can occur. Replace caulking or sealant as needed.

5. Inspect the Roof

Check the roof and chimney for broken or cracked shingles that can come loose during a storm. Since blocked gutters can cause snow dams and ceiling leaks on warmer days, make sure that the gutters and downspouts are completely clear and free of dirt and debris. You can also hire a qualified roofing contractor to perform a complete check of the roofing and do necessary repairs.

6. Prepare for Snow and Ice Removal

If you have contracted snow and ice removal to a vendor, confirm that your contract is current and valid. Now is also the time to call and shop around for rates if you were unsatisfied with their performance last year.

If you have your own personnel to handle snow removal, make sure you have all essential supplies such as salts, shovels and properly functioning snow blowers on hand. Don’t wait until bad weather comes knocking to take action!

7. Prevent Falling Branches

Check for any weak tree branches (or trees!) that can fall due to high winds or snow accumulation and cause property damage, or worse, injure your tenants.

8. Clean Your Chimneys

If your property has wood-burning fireplaces, hire a professional chimney sweep to clean them and inspect them for any sign of damage or obstruction.

9. Test Alarms and Detectors

If maintenance of the smoke alarms and carbon monoxide detectors in the property is your responsibility as per the lease agreement, now would be a good time to test the devices and replace the batteries.

10. Check Vacant Properties

Conduct periodic inspections of vacant properties throughout the winter. If you are responsible for taking care of a vacation home that will be empty for the season, you may want to completely turn off the water supply, drain the pipes and toilets, and put non-toxic antifreeze in the toilet bowls.

11. Don't Forget Your Rental Office

Remember to make sure that your on-site rental office and common areas such as clubhouses are also equipped to deal with the winter weather.

Of course, this is only a basic list of things that you need to do to get your rental properties ready for winter. Depending on the age, location and condition of the properties under your care, there may be other steps you need to take to prepare for the coming cold weather. 

While house flipping can be very lucrative, you can lose everything with one bad decision. It’s important to approach this profession with caution and educate yourself as much as possible.

Before you even dream of entering this field, you have to be great with your hands or at the very least well versed on the topic of trades and renovations. You should also have a feel for the market. The last thing you want is all your profits sunk because you bought at the wrong time. It’s not as fun and easy as it looks on TV. This is a job that is not only very stressful but requires a lot of hard work.

It goes without saying that you need investment capital and excellent credit before embarking on a project of this magnitude. This step-by-step guide will set you in the right direction, but it’s important to remember that this isn’t an exact science. Never be complacent and always stay on your toes.

1. Scouting Homes

The most typical way to find homes is through the regular channels, finding a real estate agent, searching online, etc. However it’s important to be patient, always look out for the right deal.

The best bang for your buck is foreclosed homes. Make a habit of routinely checking the Internet for new foreclosed homes. Once you find one that looks good, never buy it on a whim. Always see it in person and bring an inspector.

2. Timing

The real estate market is generally steady, but there can be significant fluctuations from time to time. The last thing you want is to be a victim of these fluctuations. The most important thing to take into consideration when scouting a new home is locations. The better the location, the easier to flip. Selling fast mitigates the risk of these fluctuations. It’s also important to have great relationships with contractors so you don’t get caught with them dragging their feet.

3. What to look for in a house

It’s important not to purchase a potential tear down. What you’re looking for is a home that is structurally sound and only requires cosmetic upgrades. That’s why it’s important to have an inspector to verify that there is no mold or asbestos and that the wiring is sound. You also have to ensure that it’s built on a solid foundation.

4. Which renovations to focus on

As mentioned in step 3 you want a house that only requires cosmetic renovations, structural ones are very pricey. Even when narrowing it down to cosmetic, make sure you are focussing on cosmetics that will actually increase the value of the house. For example, installing a swimming pool is very costly and while it attracts more buyers, it won’t make you any extra money.

The most important room to focus on is upgrading the kitchen. Fresh tiles, a new backsplash, and marble or granite countertops are essential. It’s also vital that you upgrade the appliances to stainless steel.

Other essential renovations include upgrading the bathrooms, installing fresh hardwood floors and fresh paint of course. Be sure not to neglect painting and landscaping the outside of the house to increase curb appeal.

5. Flip

Once you’ve located a sound house in a good location and finished all the renovations, flipping it should be a cinch. Also, it’s a good idea to be proactive and look for buyers before the project is complete.