Marketing Tip #1 - Buying an investor own property

Marketing Tip #1 - Buying an investor own property

By Will Johnson - Realtor Sustainability Advocate Inspection Perfection (888) 552-4677

 

Buying an Investor owned Property

 

Buying a home? Chances are you will encounter an investor owned property otherwise known as a

“flipped” home. Trendy, attractive renovations include new paint and flooring. Kitchen and bathroom

renovations are the biggest attraction. This also adds value in the appraisal process. However some

caution should be taken into consideration. As profits are the bottom line, some of functional features

of a home like plumbing, electrical, heating systems may be costly repairs and therefore untouched.

Flipped homes may have high carrying costs, so renovations are rushed. Lowest bid contractor usually

gets the order. This may lead to unskilled, underpaid and uninsured workers with little quality control or

management.

In addition, there may be no disclosure provided as the investor hasn’t lived in the property. This means

usually no history of damage, repairs, additions and/or renovations.

Under these circumstances, the home inspection becomes a crucial process. As a trusted source, a

certified home inspector provides an unbiased, objective evaluation of all the major components of a

home. This reassures the buyer of thoroughness and objectivity of the inspection process. A detailed

report is provided for further review and documentation.

Certification provided by the California Real Estate Inspection Association (CREIA) develops and fosters

ongoing education. CREIA has developed an accepted standard inspection agreement, Standards of

Practice and Code of Ethics. These all add assurance to the inspection process and confidence in the

real estate transaction.

 

Totally agree, have it checked to make sure it is what you were expecting. Call me today even if you are just after free confidential advice.

Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

The Week that was in Property

The Week that was in Property    Thursday 31 July, 2014 Good Morning! The key property NOISE of the week:   Trade Me Property changes its pricing model – again!   By Alistair Helm Trade Me Property today announced a new pricing structure almost a year after the implementation of the radical switch from a subscription model to a pay-per-listing business model. That model has, so it seems, proved to be a too great a stretch for the industry to accept …read more   Got something to say ? We're taking reader submissions! Put your thoughts into 100 - 300 words (around 1 page in a Word document) and fire it off to admin@propertynoise.co.nz We'll review it and post it up on Property Noise.   THERE'S ONE DAY LEFT IN OUR JULY PROMOTION!  2 x HOME PAGE PROFILES (like the example below) are up for grabs this time for 12 MONTHS.   These adverts are valued at: $1633.92 plus GST EACH! To enter the draw, simply: ✓ Like our page on Facebook, ✓ Like our posts and/or, ✓ Share our posts with your friends/followers. Every activity you make on our Facebook page gives you an entry in the draw! Competition closes on Thursday 5pm 31 JULY, 2014. Winner to be announced Friday 1st August, 2014     Other Property Noise for the week...   1. Canterbury's building crisis as widespread as leaky home issue A building crisis in Canterbury could be as widespread as the leaky home issue, lawyers say.More evidence of shoddy repair jobs is making its way into court, with home owners suing insurers and building companies over earthquake… …read more 2. Delay causes concern Many landlords are stuck in limbo after the Reserve Bank announced it would delay the implementation of higher capital requirements for mortgages when investors have more than five properties. …read more 3. Landlord lashes out at quake law Heritage building owners are struggling financially, unable to upgrade their places, breaching banking covenants and forced to sell properties cheaply, says a landlord. Terry Gould of Phillimore Properties, which owns the NZ Institute… …read more 4. Banks call for low-deposit applications Banks want to hear from first-home buyers with small deposits. Since last year, they have had to keep their lending to borrowers with less than a 20% deposit to no more than 10% of new lending   …read more 5. Council invited developer to buy QEII Square, private papers reveal The privatisation of Queen Elizabeth Square for a giant mall downtown in the CBD was initiated by Auckland Council last year, documents show …read more Plus... Real estate industry abandons print media! OK – this headline is not quite true. But I couldn't help myself to take the opportunity to headline an article that I never foresee occurring, a least not anytime soon. So the real headline is Real Estate Industry Authority abandons print media The news is that the Real Estate Agents Authority (REAA) the body that has under the mandate of the Real Estate Agents Act (2008) undertakes the licensing of the industry has after 4 years in existence decided (very smartly in my view) that there is no logic in requiring that prospective agents advertise as a Public Notice their …read more Read all of the latest news at PropertyNoise.co.nz Profile your business here... click to leave a message   Don't forget if you profile a property for sale/rent on our site...  Feature a property listing on our Property for Sale Page UNTIL SOLD! $49 plus GST Click here to purchase Regards Ed Property Noise (NZ) P.S. Don't forget to like us on Facebook and follow us on Twitter so you are up to date with the very latest property and real estate NOISE.

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Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

 

Here's How You Should De-Clutter Your Home

http://www.huffingtonpost.com/2014/07/29/declutter-home-chart_n_5628543.html?utm_hp_ref=huffpost-home&ir=HuffPost+Home

 

It's yard sale season and while that bargain-basement-priced table lamp might seem like a good buy, we're here to talk some sense into you. Or, rather, we're going to let the folks at Nestopia do the talking -- at least until you get rid of some stuff you already own. You could look at it as a boring approach to decorating or maybe even an intervention (we're looking at you, "collectors"). Or, you could see it the way Nestopia does, as the easiest way to achieve a minimal home aesthetic. We aren't talking just white walls and "clean lines" here. We're talking an entirely clutter-free home. - See more at: http://www.huffingtonpost.com/2014/07/29/declutter-home-chart_n_5628543.html?utm_hp_ref=huffpost-home&ir=HuffPost+Home#sthash.Id4gpuGk.dpuf

 

Sarah Turner
New Zealand Operations Manager
 


Ph: 09 834 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.nz.abuyerschoice.com
sarah.turner@abuyerschoice.com

Client referrals are our greatest reward. If you know of anyone who can benefit from our building inspection services, please do not hesitate to let me or them know. I would appreciate the opportunity to assist.

 

Field Guide to Home Inspections

http://www.realtor.org/field-guides/field-guide-to-home-inspections

 

Home inspections are a critical part of the home buying and selling process. Knowledge in the field of property inspection has become invaluable, especially in light of stricter legislation on both a state and national level. The following information sources will assist you and in turn, your clients, in understanding home inspections, the home inspection process and working with home inspectors. You will also uncover valuable tips on the importance of a home inspection and helpful links to a variety of professional home inspection organizations and useful information available to you from the National Association. (K. Bartlett Walsh, Senior Quality Assurance/Customer Advocate)

NAR & ASHI 2001 Home Inspection Survey Highlights

The majority of home buyers (77%) had a home inspection prior to purchasing their home. Among these homebuyers:

·         81% had a contingency placed in the contract for the inspection.

·         79% attended and participated in the home inspection.

·         97% believe that the home inspection was a good value for the price they paid.

More than half (54%) of home buyers had knowledge of the inspector being a member of a professional home inspector organization. Of those aware of their inspectors’ professional affiliations, the most frequently (18%) cited organization was the American Society of Home Inspectors (ASHI).

Source: NAR & ASHI 2001 Home Inspection Study, (American Society of Home Inspectors, Feb. 2001).

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Buyers' Use of a Home Inspector in Home Purchase By Age of Home

·         74% - 10 Years or Less

·         87% - 11-50 Years

·         87% - More than 50 Years

Source: 2003 NATIONAL ASSOCIATION OF REALTORS® Survey of Real Estate Services, (National Association of REALTORS®, 2003). HD 1375 N21 sr

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Home Inspection 101

10 Questions to Ask Home Inspectors (REALTOR® Magazine Online, 2014).

What a Home Inspection Should Cover (REALTOR® Magazine Online, 2014).

The Home Inspector’s File (REALTOR® Magazine Online, 2014).

ASHI's Virtual Home Inspection Tour, (American Society of Home Inspectors, 2014).

Staying safe and sound, (The Billings Gazette, June 30, 2013). Q

Ten tips to ensure roof reliability, (HouseLogic.com, Apr. 30, 2013).

Are your plumbing pipes worn out?, (HouseLogic.com, Nov. 12, 2010).

5 Tips for Inspecting and Maintaining Your Garage, (HouseLogic.com, Mar. 15, 2010).

Treatment Options for Getting Rid of Insects, (HouseLogic.com, Mar. 10, 2010).

The Value of Home Maintenance, (HouseLogic.com, Mar. 10, 2010).

Detect Termites and other Wood-Destroying Insects, (HouseLogic.com, Mar. 9, 2010).

Inspecting and Maintaining Your Roof, (HouseLogic.com, Feb. 17, 2010).

Fast Fixes for Common Gutter Problems, (HouseLogic.com, Dec. 4, 2009).

Can I Cut My Title Insurance Fees?, (Money, Jan. 2009). Q

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Legal & Regulatory Issues

Home Inspector Sues Agent for Calling Him “Total Idiot” (REALTOR® Magazine Online, Daily Real Estate News, Jan. 18, 2012).

Let’s Ask the Inspector - Even If You Know the Difference Between a Ground Rod and a Two Gang, Avoid Acting Like a Home Inspector (REALTOR® Magazine Online, News and Commentary, Mar., 2011).

Community & Political Affairs—State Issues Tracker, (National Association of REALTORS®, 2014).

Cleaning Up The House; What You Can't See Can Make You Sick. How to Get Rid of it, (Newsweek, Aug. 11, 2006). Q

Quality of Home Inspection Varies by Region, (Realty Times, Jan. 11, 2008).

The New Word in Home Sales: 'Canceled'—Buyers Back Out of Deals in Record Numbers - A $30,000 Deposit Lost, (Wall Street Journal, Nov. 3, 2006). Q

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The Home Inspection Professional

Existing state home inspector regulatory legislation, (American Society of Home Inspectors, 2014).

Becoming an inspector, (American Society of Home Inspectors, 2014).

Finding the Next Right Thing, (Associations Now, June 2006). Q

Home Inspections and the Real Estate Licensee, (Journal of Real Estate Practice and Education, 2003). Q

Code of Ethics of the American Society of Home Inspectors, (American Society of Home Inspectors, June 13, 2004).

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Websites

American Society of Home Inspectors
932 Lee St., Ste. 101
Des Plaines, IL 60016
Tel. 847-759-2820
http://www.ashi.com

National Academy of Building Inspection Engineers
P.O. Box 403
Wilkes-Barre, PA 18703
Tel. 800-294-7729
http://www.nabie.org

International Association of Certified Home Inspectors
1750 30th Street
Boulder, CO 80301
http://www.nachi.org

National Association of Home Inspectors
4248 Park Glen Rd.
Minneapolis, MN 55416
Tel. 800-448-3942 or 612-928-4641
http://www.nahi.org

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eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

The 30 Second Commute—The Ultimate Guide to Starting and Operating a Home-Based Business (Adobe eReader)

The Clutter Cure—Three Steps to Letting Go of Stuff, Organizing Your Space and Creating the Home of Your Dreams (Adobe eReader)

The Complete Book of Home Inspection (Adobe eReader)

The Complete Guide to Zoning (Adobe eReader)

Home Closing Checklist (Adobe eReader)

How to Increase the Value of Your Home (Adobe eReader)

Neighbor Law: Fences, Trees, Boundaries & Noise (Adobe eReader)

What Every Homeowner Needs to Know About Mold (Adobe eReader)

Books, Videos, Research Reports & More

The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800-874-6500 for assistance.

Mystical Guide to Home Inspection, (Author House, 2005). HD 1375 R17

Navigating USPAP - Practical Applications, (Appraisal Foundation, 2005). HD 1387 H46

Mold & Real Estate: A Handbook for Buyers and Sellers, (Thomson South-Western, 2004). TD 883 St8

Secrets of the Happy Home Inspectors, (Someday Publishing, 2004). HD 1341 C76

REBAC Roundtable 2003, Volume II: Home Inspections and Buyer's Rep Liability, (Real Estate Buyer's Agent Council, Inc., 2003). HF 296 R24r

2003 NATIONAL ASSOCIATION OF REALTORS® Survey of Real Estate Services, (National Association of REALTORS®, 2003). HD 1375 N21 sr

Inspecting a House, (Newton, CT: Taunton, 2001). TH 4817.5 C31

Real Estate Home Inspection, (Chicago, IL: Dearborn Financial Publishing, 1999). HD 1387 Bu91

Start Your Own Home Inspection Business, (Paramus, NJ: Prentice-Hall, 1999). HD 1375 P91

Home Inspector's Guide to Training the Real Estate Professional: An Overview of the Home Inspection Process, (Hurricane Press, 1998). HD 1341 Sh8h

Red Flags: Property Inspection Guide, (Chicago, IL: Real Estate Education Company, 1995). TH 4817.5 P91

The Real Estate Inspection Book, (Canton, OH: Kooba Company, 1995). HD 1341 M31

Field Guides & More

These field guides and other resources in the Virtual Library may also be of interest:

Field Guide to Lead Based Paint

Field Guide to Mold and Health Issues

Field Guide to Preparing & Staging a House for Sale

InfoCentral Blog

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Have an Idea for a New Field Guide?

Click here to send us your suggestions.

The inclusion of links on this field guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this field guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

 

 

Sarah Turner
New Zealand Operations Manager
 


Ph: 09 834 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.nz.abuyerschoice.com
sarah.turner@abuyerschoice.com

Client referrals are our greatest reward. If you know of anyone who can benefit from our building inspection services, please do not hesitate to let me or them know. I would appreciate the opportunity to assist.

 

15 Tools Every Homeowner Should Own

http://www.nachi.org/15-tools.htm

 

by Nick Gromicko

The following items are essential tools, but this list is by no means exhaustive. Feel free to ask an InterNACHI inspector during your next inspection about other tools that you might find useful.

1. Plunger

A clogged sink or toilet is one of the most inconvenient household problems that you will face. With a plunger on hand, however, you can usually remedy these plumbing issues relatively quickly. It is best to have two plungers -- one for the sink and one for the toilet.

 

2. Combination Wrench Set

One end of a combination wrench set is open and the other end is a closed loop. Nuts and bolts are manufactured in standard and metric sizes, and because both varieties are widely used, you’ll need both sets of wrenches. For the most control and leverage, always pull the wrench toward you, instead of pushing on it. Also, avoid over-tightening.

3. Slip-Joint Pliers

Use slip-joint pliers to grab hold of a nail, a nut, a bolt, and much more. These types of pliers are versatile because of the jaws, which feature both flat and curved areas for gripping many types of objects. There is also a built-in slip-joint, which allows the user to quickly adjust the jaw size to suit most tasks.

4. Adjustable Wrench

Adjustable wrenches are somewhat awkward to use and can damage a bolt or nut if they are not handled properly. However, adjustable wrenches are ideal for situations where you need two wrenches of the same size. Screw the jaws all the way closed to avoid damaging the bolt or nut.

5. Caulking Gun

Caulking is the process of sealing up cracks and gaps in various structures and certain types of piping. Caulking can provide noise mitigation and thermal insulation, and control water penetration. Caulk should be applied only to areas that are clean and dry.

6. Flashlight

None of the tools in this list is of any use if you cannot visually inspect the situation. The problem, and solution, are apparent only with a good flashlight. A traditional two-battery flashlight is usually sufficient, as larger flashlights may be too unwieldy.

7. Tape Measure

Measuring house projects requires a tape measure -- not a ruler or a yardstick. Tape measures come in many lengths, although 25 feet is best. Measure everything at least twice to ensure accuracy.

8. Hacksaw
A hacksaw is useful for cutting metal objects, such as pipes, bolts and brackets. Hacksaws look thin and flimsy, but they’ll easily cut through even the hardest of metals. Blades are replaceable, so focus your purchase on a quality hacksaw frame.

9. Torpedo Level
Only a level can be used to determine if something, such as a shelf, appliance or picture, is correctly oriented. The torpedo-style level is unique because it not only shows when an object is perfectly horizontal or vertical, but it also has a gauge that shows when an object is at a 45-degree angle. The bubble in the viewfinder must be exactly in the middle -- not merely close.

10. Safety Glasses / Goggles
For all tasks involving a hammer or a power tool, you should always wear safety glasses or goggles. They should also be worn while you mix chemicals.

11. Claw Hammer
A good hammer is one of the most important tools you can own. Use it to drive and remove nails, to pry wood loose from the house, and in combination with other tools. They come in a variety of sizes, although a 16-ounce hammer is the best all-purpose choice.

12. Screwdriver Set
It is best to have four screwdrivers: a small and large version of both a flathead and a Phillips-head screwdriver. Electrical screwdrivers are sometimes convenient, but they're no substitute. Manual screwdrivers can reach into more places and they are less likely to damage the screw.

13. Wire Cutters

Wire cutters are pliers designed to cut wires and small nails. The side-cutting style (unlike the stronger end-cutting style) is handy, but not strong enough to cut small nails.

14. Respirator / Safety Mask
While paints and other coatings are now manufactured to be less toxic (and lead-free) than in previous decades, most still contain dangerous chemicals, which is why you should wear a mask to avoid accidentally inhaling. A mask should also be worn when working in dusty and dirty environments. Disposable masks usually come in packs of 10 and should be thrown away after use. Full and half-face respirators can be used to prevent the inhalation of very fine particles that ordinary facemasks will not stop.

15. Duct Tape

This tape is extremely strong and adaptable. Originally, it was widely used to make temporary repairs to many types of military equipment. Today, it’s one of the key items specified for home emergency kits because it is water-resistant and extremely sticky.

 

 

Sarah Turner
New Zealand Operations Manager
 


Ph: 09 834 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.nz.abuyerschoice.com
sarah.turner@abuyerschoice.com

Client referrals are our greatest reward. If you know of anyone who can benefit from our building inspection services, please do not hesitate to let me or them know. I would appreciate the opportunity to assist.

 

Who is managing build quality these days?

http://surveyingproperty.blogspot.co.nz/2014/07/who-is-managing-build-quality-these.html#.U9bHOPmSy0c

 

Guest article from Joe Malone BSc(Hons) ICIOB

 

'I have worked on a high number of complex building defect investigations over the last 6 months and most of my conclusions have proven that poor build quality and hidden latent defects are to blame'

 

My work as a consultant building pathologist has led to me forming a strong view that build quality simply isn't adequately managed anymore. I have worked on a high number of complex building defect investigations over the last 6 months and most of my conclusions have proven that poor build quality and hidden latent defects are to blame. Some might blame the demise of the traditional clerk of works role to oversee build quality but I have formed a view that clients are simply becoming too trusting. It costs money to run with a client side surveyor and why bother when you're working in 'partnership' or 'collaboratively' with your contractor? They allow contractors to self manage build quality or they trust to building control inspections and take further comfort in the fact that they purchased an NHBC guarantee.  You may well be shocked at some of the things I encounter during my survey work so I thought I would give you a flavor by way of sample of some case studies on recent survey reports I carried out in London.

 

Case Study 1. Overflowing with Defects

 

Fig 1. Balconies not draining - Source: Authors Own

You will notice the decorative spoiling to the underside of the balconies in figure 1. The square steel stanchion you see is also the rainwater downpipe that the balconies drain into. There is only one outlet for each balcony and the balcony is covered with timber decking that sits above the asphalt coating on a Harmer Uni-ring raised floor support system, as seen in figure 2 below.  This was included in the build specification that I managed to get hold of. It was rather a shame that the clients quality control manager (if they had one) didn't also get hold of it because then the client might have seen that the system was completely omitted and replaced with larger timber battens directly screw fixed through the bituthene membrane on the balconies.

 

This Harmer system was meant to provide a dual role:

 

1.  To raise the timber firrings off the balcony tray to allow rainwater crossflow to the single balcony outlet.

 

2. To provide a fixing system for the timber firrings, thereby preventing the bituthene membrane from being punctured.

 

Fig 2. Harmer Uni-ring system that was meant to be installed on balconies - Source: http://www.alumascroofing.co.uk

Screw fixing timbers directly through the bituthene membrane on the balconies was not a sensible thing to do but the second issue was that solid lengths of timber battens fixed to the floor meant that there was no crossflow of water to allow it to reach the single drain point. The net result was that rainwater spills over the edge of the balconies and tracks back underneath balcony ceilings causing the decorative spoiling that can be seen in figure one. This development is circa 10 years old and the problem  has existed and remained undiagnosed from day one.  I am still staggered that the developer managed to get away with this. 

 

Case Study 2: The Lost Art of Parapet Walls

 

This case proved two things, one, that the high cost of property does not guarantee a better build quality and two, that no one seems to know how to build a correctly detailed parapet wall anymore.

 

I was appointed to investigate the cause of water ingress into a very expensive residential block overlooking the Millennium Dome. Water ingress was affecting one flat in particular below the top floor penthouse. As such most of investigation work was focused on the top floor (See figure 3 below).

 

A perimeter parapet wall surrounded the balcony and there were a couple of visual tell tales that made me suspect that all was not well with the parapet.

 

1.  No visual sign of a dpc under the copings.

2.  Cracked mortar joints between copings

3.  No sign of weeps on either side of the parapet wall

4. Parapet stone drips were compromised on the outer ledge by the installation of fibreglass decorative cornice that was too wide for the application and therefore covered the coping stone drips causing significant water staining on the outer face of the parapet wall.

 

It was obvious to me that a coping would need removing to fully inspect the parapet and you can see in figure 4 below what I uncovered. This is as bad as it gets for parapet wall detailing. The dpc was too narrow for application, it was sagging into the cavity due to the lack of a hard support to bridge the cavity and there was no effective cavity tray or drip details installed in the parapet. I even found a couple of old joist hangers thrown into the cavity. 

 

Fig 3. A good view from the penthouse balcony   - Source - Authors Own

 

Fig 4. A bad view from the penthouse balcony - Source - Authors Own

You may be able to see in figure 4 how the timber batten on the outer ledge compromises the drip detail on the underside of the parapet coping stone. The fibreglass decorative cornice was fixed to this.

 

I'll let you hypothesize what a very nice penthouse flat with this sort of view might cost but it had no relationship to build quality, which was quite shocking. 

 

In next week's article I will provide some further examples of poor building practice which could have been avoided if the build quality was managed more effectively.

 

Joe Malone BSc(Hons)ICIOB

Malone Associates Ltd

 

Please feel free to share this article and other articles on this site with friends, family and colleagues who you think would be interested

 

Information/opinions posted on this site are the personal views of the author and should not be relied upon by any person or any third party without first seeking further professional advice. Also, please scroll down and read the copyright notice at the end of the blog.

 

 

Sarah Turner
 


Ph: 09 834 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.nz.abuyerschoice.com
sarah.turner@abuyerschoice.com

Client referrals are our greatest reward. If you know of anyone who can benefit from our building inspection services, please do not hesitate to let me or them know. I would appreciate the opportunity to assist.