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Why a home inspection is even more important in today’s market condition

So, here we go again. The 2021 Buffalo real estate market, as in the past few years, has an abundance of buyers for a limited number of listings. Everyone is trying to put the best deal together, so their offer might be the lucky offer selected. Buyers are having to go to many extremes, and many deals are 20, 30, even 40 thousand dollars over listing price. Some buyers are even waiving the home inspection thinking this might be the edge needed to win and be able to purchase their dream home.

Unfortunately, there are problems brewing. Waiving a home inspection can and will eventually cost someone a lot of extra money. Money they were not expecting to have to spend, let alone figuring out how to come up with the funds. I am going to address the problem with not having a full home inspection. A home inspection that adheres to the NYS Department of State Division of Licensing Home Inspector Licensing Act, NOT these “walk and talk” things that some are attempting to do.

Just a very quick note – these “walk and talks” are bad. They do NOT adhere to any standards, and most importantly in our market, do not adhere to NYS Department of State Division of Licensing Home Inspector Licensing Act. And they are a complete disservice to the consumer. I am writing another article that covers this topic and how this is a disaster just waiting to happen!

Simply put, not having a home inspection is a bad idea and can be problematic to every single person involved in the selling and buying process. There can be harm and damage to all involved, but in this article I want to concentrate on the buyer.

You may or may not know this, but when a new buyer moves into their new home, they will likely live in the home differently…we have all heard the story about the little old lady. Let me give you this example. The little old lady took a shower daily and it was a quick shower and nothing ever happened. Now the buyer moves in and the showers are longer, the water is a bit hotter, the shower is being used multiple times a day and things start to happen. The shower starts to drain differently and begins to slow or not drain at all. The next thing that happens is the buyer runs out to the local hardware store and buys some drain cleaner and dumps it down the drain and hopes that will fix it. Unfortunately, nothing changes and now a plumber is called to investigate and discovers the sewer line is bad. I do not know about you, but I know what a sewer line repair and/or replacement can cost. It is not in the hundreds of dollars most of the time, rather it is in the thousands. So, now the buyer must come up with 2, 5, or 10 thousand dollars to have repairs completed. Here is the problem. Many buyers are overextending themselves financially on the purchase price just to get the home and have very little money available to have repairs completed. OK, you might be thinking that this example does not happen very often. You would be wrong, and I hope you never have to pay for this type of repair. What about a roof leak? Let us run through the scenario once again. The leak is not going to fix itself, so now a roofing contractor is called to investigate and discovers that the roof is bad because it was improperly installed or has damage. Ever priced out a new roof? It is not cheap! What about a furnace problem, or a kitchen appliance problem? I think you get the point! All these problems are going to cost money to repair or replace and if a proper home inspection was completed these issues could have been avoided.

Buyers not having a home inspection completed are setting themselves up for failure and potential unforeseen financial burdens. Remember, most offers today are going over listing price and the buyers are overextending themselves financially and many are becoming cash poor. Where is the money going to come from to fix problems that might develop if the buyer has overextended themselves? In most cases there certainly is not any equity available yet, because they just recently closed on the property. So, now what happens? Repairs do not get completed causing additional problems to develop, or the buyer pays for a big-ticket repair and must cut paying other financial commitments. Let us not forget about lawsuits! After buyers find themselves buried in debt, they are going to want someone to pay for the problems they are experiencing. So, both Realtors® and the brokerage have a target on their backs, and the seller will surely be included in the fun. Before everyone says, no liability here because the buyer opted not to have a home inspection completed. It is not our fault may not help your defense. Why, because someone told them to waive the inspection. We need to remember one thing, it will still cost you time, money, and even future referrals and the worst part is the buyer still has a problem. We are problem solvers and should be providing the best experience and resources for our clients.

There is a very simple solution - have a home inspection completed. While there are many good inspectors in our market, there is a huge difference in what is provided. Yes, the word provided is the key word to remember as you continue reading. There is not one person or inspector that can predict the future, but one thing most of us know is after someone moves in a home things happen, issues develop, and things may even fail. So even with a home inspection, there still could be a financial burden just waiting to drain money from a buyer’s checkbook. That is not the case with our clients.

Here is the difference, you need to hire a home inspection firm that provides solutions to your problems, like providing warranty protection. Here at All Pro Home Inspection, we provide over $100,000 in warranty protection with every home inspection we complete (single family up to a 4-family). Why, because like the old bumper sticker said “Sh*t Happens” and we want to have solutions to your unforeseen problems. After the inspection when you call our office with a problem, we will hopefully have a solution for you, and not just say, “Well I am sorry, but it was working at the time of the inspection.” This is coverage you deserve!

Recently, I received a call from one of our referring partners and she said, “John how long is that roof warranty good for?” After I corrected her and told her it was called a Roof Protection Plan, and it is good for 5 years from the date of the inspection and comes with $3,000 in coverage for roof leak repairs, I asked who was having a problem. She said, well 4 years ago you did an inspection for my client and she has a leak. I said, “no problem. In her inspection binder she will find the flier for the Roof Protection Plan, and she needs to follow the claim instructions.” Long story short – the claim was approved and a check for $3000 is being mailed out to help correct the problem.

Let me talk to you about another client of ours. He insisted on getting a home inspection and refused to purchase a home without one but knew his chances of winning the purchase offer would be slim, if he insisted on having a home inspection as part of his offer. His agent was able to secure enough time for me to conduct a full home inspection prior to offers being accepted and opened. During the inspection, I reported that a Federal Pacific electrical panel was present, and that the attic had microbial growth present. Two issues that will require money to correct. Of course, neither issue was disclosed on the Property Condition Disclosure. His plan was to get estimates for these two issues, so he would know what his repair costs were going to be and give him guidance during the bidding process. Ultimately, I his purchase offer was not accepted, because he stopped at $25K over list price. You see, he was willing to overpay to a curtain point and knew he had to invest between $4K to $5K to correct the issues discovered at the home inspection. Sadly, the winning offer waived the home inspection. So, when the new owner moves in and discovers these issues what do you think is going to happen? I hope they have an extra $5K laying around. Let me wrap this up and say there really is not a good outcome by waiving a home inspection. Those doing so and others that are promoting this practice are only harming themselves and eventually it will catch up with everyone.

If you are a Realtor® reading this let me ask you this. Is your home inspector providing this level of service and products for your clients? If not, give us a call at (716) 772-2548 and we can have a conversation. If you would like to schedule John to come in for an office presentation to discuss this topic or other topics, give us a call.

For you buyers out there. Do yourself a huge favor…do not waive your home inspection. If your offer of $40K over list price is not good enough to win, there is always another home for you to purchase. Also, if you want the service and protection you deserve – call us to schedule your home inspection.

John Villella, Owner and General Manager

John Villella is a NYS licensed home inspector and General Manager of All Pro Home Inspection where we have been serving Buffalo, NY and the surrounding WNY areas for over 20 years. Give us a call at (716) 772-2548 to schedule your home inspection or schedule online at www.allprohomeinspection.com

5 Tips home buyer’s to use in a seller market

The Buffalo Real Estate market is on fire once again. If you haven’t realized it yet, you must be sleeping under a rock. Once again, 2018 is mirroring the real estate market of the past two or three years where the listings trickle in slowly and multiple offers will likely be the norm. As a buyer, you must remain diligent in your thought process and buying experience. Sure, it might sound easy, especially to individuals that are not looking to purchase a home, but as a buyer, you stand to lose the most, if you act on emotions and not remain diligent.

Buyers are frantically running from listing to listing and placing offers, only to witness
offers being presented for $5K, $10K, $20K and even $30K over the listing price. Just last month, a recent listing sold for $32K over listing price on a property we
pre-inspected. I’ll tell you some more information regarding this property later in the article. Here’s the good news. If you follow the tips below, you as the buyer can avoid making mistakes that could cost you thousands of dollars.

Here are 5 tips buyers should use, even in a hot seller’s market:

1. Never, I mean never go above what you can afford. Don’t put yourself in a position where your monthly income is completely consumed by mortgages, taxes, utility bills, and day to day spending. Don’t get caught up in a bidding war just to get the home you think you want. You might find yourself having to come up with $5K or $10K cash to put down on the home because it didn’t appraise. Stick to your plan and stick to your budget. There’s always a new home being added to the MLS every single day.

2. If you see a home that you like – move on it! Don’t let others that are in the same boat as you find it and create that bidding war. Your Realtor® can absolutely help you with this, but if you stumble across a home that’s for sale, even a FSBO (For Sale By Owner), get your Realtor® involved ASAP.

3. Make sure you are working with a Realtor® that has the time to assist you. There are many awesome Realtors® out there, but if you can’t call your Realtor® and get a response immediately and get a showing scheduled chances are you will be late to the party and end up in a bidding war.

4. Sadly, many buyers are opting out of the home inspection just to sweeten their offer. This can be very risky and cost you thousands of dollars. I’m not sure where this idea of passing on the home inspection originated, but that person should get out of the Real Estate business because it will eventually cost buyers, sellers and even Realtors® money in the long run. A few years ago, the Buffalo Niagara Association of Realtors® revised the purchase contracts and the Forms & Contracts Committee felt that Home Inspections and Radon testing were so important they added this language in the purchase document, and even requires your acknowledgment as to you being advised to have these services completed. Now, suddenly, it’s not that important to a few Realtors® because they believe opting out of the inspection strengthens their offer because it’s a sellers’ market. Sadly, it does have an impact of the bidding process, but just remember the only party not effected by you the buyer opting out of the home inspection is you. Just remember, everyone else is making money, but advising you to opt-out of the home inspection to strengthen your offer is bad advice and can and will eventually cost you more money. So, do not opt-out of the home inspection.

5. Congratulations, you were successful in getting your offer accepted, likely above the listing price, and you were smart enough to want a home inspection. After the inspection is completed, don’t allow the seller or listing agent to persuade, and even bully you, yes, I’ve seen this occur recently. If valid issues are discovered during the inspection process and documented on the PINA (Property Inspection Notice Addendum) and you request a repair or credit stick to your guns. Don’t let the other side push you around. Remember, you are the one in control. It’s also important to remember, if you do not continue forward in the process the seller must disclose the issue(s) they have been made aware of. Use this as leverage. You see people get blinded by the money and type of market we’re in currently. Let me give you an example – recently we conducted a home inspection and discovered the front porch had settled and rotated causing a large gap to occur and along the way someone attempted to repair the 3 to 4 inch gap bridging the porch to the entry door threshold and the repair was, just let’s say amateur. My client, the buyer requested a $500 credit at closing, which was likely not going to cover the cost of repair. The seller and listing Realtor® thought that was excessive and canceled the contract. Are you kidding me? The deal goes $7K over listing price and a valid defect was discovered, which wasn’t disclosed, and the deal gets blown apart over $500. Was the extra $6,500 not enough for the seller and Realtor®? Like my client stated –

“I can deal with crazy and I’ll call you when I find another home.”

Let me end with this thought. Yes, it’s a sellers’ market and after the inspection is over you need to be careful as to what you request in the PINA, but you don’t need to except the property, if there’s a safety issue or major problem you don’t wish to deal with after closing.

Back to the $32K over listing price property I mentioned earlier. We completed a pre-listing home inspection on this property. The seller actually fixed a few issues that were discovered from our inspection and disclosed the other issues. The seller also agreed to purchase and offer a Home Warranty that we provide, which also provides listing coverage to the seller until the day of closing and the buyer will receive 18 Months of Warranty Coverage. Plus, a 5-Yr Roof Protection Plan that covers roof leaks. Long story short – the home sold in under a day and the buyer was happy to see the home was inspected, repairs completed and the warranty package that the seller was providing. Here’s the best part, the buyer waived the home inspection because the home was already inspected by All Pro Home Inspection and they knew of All Pro Home Inspection and were very comfortable moving forward. This is how real estate should be sold.

So, as you continue in your search for your dream home look for pre-inspected homes by All Pro Home Inspection, because there’s a very good chance a 18 Month Warranty and 5-Yr Roof Protection Plan will be available to the deal, as added protection to you the buyer. If you have any questions about this article or home inspections, please contact us or call (716) 772-2548 to schedule you home inspection.

John Villella, General Manage of All Pro Home Inspection which is Buffalo NY and WNY’s Premier home inspection firm stated, our team looks forward to providing you with all the information you’ll need to be an educated and informed home buyer or home seller. With our professionally trained and NYS licensed home inspectors you will gain the knowledge to all of your question you might have regarding the homes systems. We provide you with other services and products that will help provide with information to assist you in home ownership and to also provide you with some protection after the inspection is over.  All Pro Home Inspection provides home inspections in the Buffalo, NY and all surrounding WNY areas. We have served this community for two decades and have completed over 11,000 inspections.

Call All Pro Home Inspection at 716-772-2548 to schedule your home inspection or schedule online at www.AllProHomeInspection.com
John Villella, General Manager

Mistakes to Avoid When Hiring Your Buffalo Home Inspector

In this post I’m going to talk about the number one mistake people make when selecting a home inspector.  This one mistake can trap you and send you down the wrong path when hiring your home inspector.

My parents should have hired All Pro Home Inspection

As I stated in a previous post, hiring the wrong inspector can be costly.  Don’t be this person, don’t listen to what other tell you – it’s your money, so you make the choice of hiring the correct home inspection firm.

Inspection Fee

Don’t get trapped in thinking that the inspection fee is the only reason or factor when hiring your home inspector.  This is by far the most ridiculous reason or factor people use when selecting their home inspector.  Across the country prices range and differ.  For example, a home inspection on a 2000 sf. ft. home in California could cost you $600 and here in Buffalo the inspection fee is around $375.  The same service being provided, but the marketplaces have different costs of living driving the difference in the fees.   Now, every market in the country has a few inspectors – “low ballers” that just don’t get it and have a fee of $199 – $250 for that same 2000 sq. ft. home.  Many times these “low ballers” are new inspectors and can’t compete except for having a low inspection fee.  Others are just plan bad inspectors and are dropping the fee to survive.  Here’s what I know after 20 years in this business.  Both are bad for the home inspection industry and more importantly, it’s bad for the consumer.  Also, in both cases many times the inspector or inspection firm will be gone in the near future, but don’t worry, because there will be another “low baller” filling the voids.

Now, I might offend a few of you reading and if this the cast I’ll apologize now.  If you are looking for the low ball or cheap inspector, just call our office and we’ll be happy to give you the phone number of the cheapest inspector in the area.  To be honest with you, we don’t want to work for people that think price is the driving factor when hiring a home inspector.  I’ll be nice – I’d rather you call someone else, because you’re not worth my time trying to educate you why price should be one of your last reasons when hiring.  Here’s a link to a video you can watch regarding home inspection pricing that has nothing to do with our company.  But, when you’re done watching the video and have your head on straight give us a call and we’ll be happy to assist you with your inspection needs.

Don’t fall into the trap…look I understand people always want to get the best price, but this is one time when your cheap instinct must be ignored.  You need to look at the value in the services and products that you’ll be provided.

You need to ask what services and products are included with the home inspection.  Will you receive any warranties, will you receive any protection plans, will be eligible for extended coverage on a traditional home warranty that you can purchase (if desired) and does the inspection firm bring these and other value to the table for your benefit?  These are the questions you should be asking!

Why would you settle for anything short of this?  I’ll promise you hiring All Pro Home Inspection will provide you with all of these products and services.  Is paying $30, $50 or even $100 extra worth it to you?  We have had hundreds of past customers say it was.  See our third party “Reviews” for proof.

John Villella, General Manage of All Pro Home Inspection which is Buffalo NY and WNY’s Premier home inspection firm stated, our team looks forward to providing you with all the information you’ll need to be an educated and informed home buyer or home seller. With our professionally trained and NYS licensed home inspectors you will gain the knowledge to all of your question you might have regarding the homes systems. We provide you with other services and products that will help provide with information to assist you in home ownership and to also provide you with some protection after the inspection is over.

Call All Pro Home Inspection at 716-772-2548 to schedule your home inspection or schedule online at www.AllProHomeInspection.com
John Villella, General Manager

 

Welcome To All Pro Home Inspection: Hiring The Correct Buffalo Home Inspection Firm

Buffalo Home Inspector John Villella, a NYS licensed home inspector and general manager of All Pro Home Inspection stresses that hiring the correct home inspection firm can be difficult without knowledge of who you are hiring.  He also stated, hiring the wrong home inspector can be very costly.  Villella warns, home inspectors are not a commodity and one size doesn’t fit all.  Yes, there is a difference in inspectors and home inspection firms.  Selecting the correct home inspection firm will save your grief, stress and money.

The good news is hiring the correct inspection firm is easy when you know what to ask and what to look for.  Over the next few blog posts I’m going to provide you with information to ease this task and to guarantee you select the correct home inspection firm.

Call All Pro Home Inspection at 716-772-2548 to schedule your home inspection or schedule online at www.AllProHomeInspection.com
John Villella, General Manager

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