Real Estate Investment - Why Research is Necessary
The economy isn’t in the best shape it’s ever been and because of that, now more than ever, it is important to do the proper research when buying a home. Many prospective home buyers will go so far as to research the neighborhood, the school district, pollution, building plans for the area and local crime rates and then ignore the majority of the homes history that they are looking at.
When you purchase a home and discover it has code violations or other faults you create a mess of additional trouble that, as a new homeowner, you don’t need or deserve. A permit expediter can help when you are in the process of researching a home for its suitability to purchase. The expediter can review the home without bias and locate any and all violations that may exist before signing the paperwork. This can save you quite a bit of money.
Here is an example that happens all too often: Bob has been living in his house for years and has done a lot of remodeling to improve the value. He’s ready to retire and move so he puts his home up for sale. After finding a great buyer, and inspection is done now that the house is under contract. The inspection unfortunately reveals that the addition Bob built before Bob purchased the home was not done legally. Not only were the original zoning and code documents forged, which is going to cost Bob thousands in violation fees but the addition is 4 feet beyond legal size which means Bob is responsible for paying to have the addition modified or removed.
It’s a frequent issue when dealing with homes that have been improperly “flipped” by people looking to make a fast profit. Here are some tips to help keep you from falling prey to these types of problems while you are researching houses and looking for your new home.
1. Look very closely at a home that has an addition that is obviously new. Inspect the workmanship as closely as possible, look for the telltale signs of cheap materials and lousy workmanship. In many cases if the workmanship is shoddy with cut corners, it’s a good indicator that corners were cut elsewhere, like with pulling permits and adhering to code.
2. Look at the homes history as well for indications of flipping. Flipping is not itself entirely bad but it increases the likelihood that someone with dubious methods and motivations owned and modified it. If the property has a high turnover rate and has been sold and resold many times in just a year or two then the likelihood is very high that it was flipped. If this is the case then you will want to call an expediter and make certain that the home has no significant problems.
3. Ideally a 3rd party, like an expediter, is supposed to be unbiased. The reality of the situation is that you just should not trust their inspection at closing time. Some inspectors may have loyalties to some degree to the agent and could possibly remain willfully ignorant of certain violations in order to let the sale slide through. If those violations are discovered later it is the current owner’s problem not the inspector or previous owner’s.
Adjust your budget to work an expediter in during the research and inspection process. It’s approximately $300 to $500 for a permit inspector depending on the area but it’s a worthy investment if anything seems out of place on a home you’re buying. The small investment up front beats a big fine down the road.
Buying a home is a big step and it’s not something you should have to endure alone. Partner with a Northern Virginia Real Estate agent to help you find the perfect home for your family. From DC to Northern Virginia Realtors, we can help you. Paragon Remodeling - 8000 Towers Crescent Dr - Vienna, VA 22182