Home Inspections: Items That Aren’t Deal Breakers

After making an offer on a home, you’ll enter into a contract. Part of that contract should always include getting a home inspection. It is recommended that any homebuyer make an offer to purchase contingent upon a home inspection. This allows you to withdraw your offer if there are any major issues discovered during an inspection.

More than likely, the home inspector will find problems that need to be fixed before closing. Major foundation issues and significant water damage are at the top of the list of signs to walk away from.

On the other hand, there are some home defects found during an inspection that don’t have to be deal breakers. Many of them can be fixed, and they can be used to negotiate with the seller for a lower selling point or additional help with the closing costs.

Lead-based paint

Lead-based paint was banned in 1978, but it’s still possible that you could purchase a home that contains it, if it was built before the ban. The sellers should disclose this, but the home inspector may find it as well.

Ultimately, it is up to you to decide how comfortable you are with purchasing a home that has lead-based paint, but it doesn’t have to be a deal breaker. You can hire a contractor who is certified to remove lead-based paint, and the home will be completely safe.

Concrete floor cracks

Cracks in a concrete basement floor may seem like a structural problem, but this is natural and not indicative of significant damage. Small cracks occur in concrete because it’s a porous substance. These cracks can be fixed at a relatively low cost, and shouldn’t be a reason for you to back out of a contract.

What is something that’s cause for concern are cracks in concrete walls, as these may or may not be associated with the structure. If the wall has moved or if the cracks have a large opening, then these would be deal breakers.

Mold

Mold is something that no one ever wants to see in a home you put an offer on, but just because you find a little bit of mold by the shower, doesn’t mean you need to back out of your offer, at least not immediately.

If mold is found during the home inspection, have a qualified mold inspector take a look. Not all molds are toxic, but the safest way to determine if this is a deal breaker is by hiring a mold professional.

Bug infestations

Bug infestations can cause significant damage to the home’s structure if they aren’t exterminated quickly and efficiently. A home inspector may find signs of an infestation during an inspection, but how do you tell if it’s truly a deal breaker?

The best way to know if there is pest damage to the home’s structure or foundation is to ask a qualified pest expert to do an additional inspection of the home. Someone who is a specialist will be able to tell you if the home just has a few bugs, or if you need to rescind your offer.

When problems arise during home inspections, it doesn’t always mean you have to back out of your contract. Home inspectors will often find problems outside of their scope of expertise, so always get a second opinion from a specialist before making a final decision. In many instances, these problems are opportunities to negotiate with the seller. You can request that the seller do the repairs, or ask for money to put towards repairs.

You can also ask the seller to include a home warranty on the home in the contract of sale, but it won’t repair the problems found in a home inspection contract. A home warranty is there to protect you from aging systems and appliances after you buy. Think of getting car insurance on a car that was just wrecked and then opening a claim. It wouldn’t work, because the insurance was put on after the damage happened. The same goes for a home warranty.

Courtesy of Whitney Bennett and  Housecall

Millennials Finally Flee Parents’ Homes

The pace of young adults leaving their parents’ homes is accelerating significantly, Fannie Mae’s Economic and Strategic Research Group notes in a new analysis.

Young adults in their mid- to late 20s or early 30s living with their parents fell between 2013 and 2015—a period known as the economic recovery—much more so than between 2010 and 2012, when the economy and housing market were still recovering from the Great Recession, researchers note.

Read more: New Households Favoring Homeownership

Young adults aged 24 to 25 in 2013 and 26 to 27 in 2015 residing with their parents dropped by 7.6 percentage points. On the other hand, those who passed through that same age range between 2010 and 2012 saw a decline of only 5.4 percentage points, researchers note.

“Stronger income growth and an accelerated rate of marriage are likely two primary reasons why millennials are starting to leave their parents’ homes at a faster pace,” researchers note.

Millennials in their 20s or early 30s saw their income, adjusted for inflation, grow by at least 23 percent between 2013 and 2015 when compared to 2010 and 2012. Further, their incomes are at least 81 percent greater than between 2008 and 2010.

Also, millennials in their late 20s and early 30s between 2013 and 2015 were getting married at a markedly faster rate than their predecessors did in that same age range during the recession and the recovery thereafter, Fannie Mae’s report notes.

“Millennials’ accelerated rate of departure from their parents’ homes bodes well for housing demand,” Fannie Mae’s Economic and Strategic Research Group notes in the report. “Cohort analysis shows that the increased pace of leaving home has been accompanied by accelerated young-adult household formation.”

Source: “Starting to Launch: Millennials Are Leaving Mom and Dad’s Basement,” Fannie Mae’s Housing Insights (2017)