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Common Home Defects All Buyers and Sellers Should Be Aware Of

Whether you’re buying or selling your home, or simply staying put, you should beware of these common problems that can cause headaches for years to come.  Home defects come in all shapes and sizes. From structural problems to air flow and ventilation issues, a lot of things can go wrong with your home.

Poor Drainage
Poor drainage is the most common problem found by home inspectors. To improve your drainage, you may have to install a new system of eaves, troughs and downspouts to better aim water away from the house. Inadequate drainage can be a devastating defect. Water can damage basements, garages and crawl spaces, compromising the foundation of the home and creating mold. Taking care of this issue is of dire importance, and buyers should avoid purchasing homes that may have drainage problems.

Rotted Wood
Another important defect to watch out for is rotted wood, both inside and outside the home. Wood that’s exposed to moisture rots over time. This can happen in bathrooms, including a tub surround, toilet seat, counter top, and flooring or even in the kitchen. These spots are especially vulnerable to moisture and should be protected with a special paint or finish.  Don’t forget to check the exterior of the home, including the deck, eaves, and trim for signs of rotting.

Bad Roofing
Always be attentive to the roof’s structure. Damaged shingles or improperly installed flashing are severe warning signs that trouble lurks ahead. Check for leaky ceilings as a sign of a damaged roof. Repairing the roof is crucial in order to prevent further damage later. Although it may be an expensive repair, it’s always best to take care of it before it affects other parts of the home.

Inadequate Ventilation
Without proper ventilation, a build-up of moisture can attack a home’s interior walls and structural components. Ventilation fans are a good idea for bathrooms without windows, and opening all of the home’s windows during bouts of good weather also helps to keep the air moving. Make sure the attic is properly ventilated to ensure that the roof has a long and functional life. Proper attic ventilation allows the intense heat of the sun to escape from the attic space and promote evaporation of moisture that would otherwise damage interior walls and structural elements.

Filed Under: Blog, Buyers, Sellers Tagged With: contractors, foundation, moisture, poor drainage, repair, Roofing, ventilation

How to Avoid Home Contractor Scams

ContractorIndividual homeowners can take several precautions to avoid becoming the target of home contractor scams.

Encouraging signs within the housing sector suggest that homeowners will continue to enlist the assistance of independent contractors. New housing starts have reached 1,036,000 (seasonally adjusted annualized rate), indicating a 47 percent increase from the previous year. Trends suggest that construction starts are now 55 percent of the way back to the normal level of 1.5 million.

Russell Price, a senior economist at Ameriprise Financial Inc., has estimated that the recent demand for housing may generate as many as 700,000 jobs in 2014. Many of those jobs will be attributed to the growth of the construction industry, which has already accounted for 15 percent of the overall job growth in the last six months.

However, a dramatic increase in construction rates may be associated with ample home contractor scams. To prevent yourself from becoming a victim of potentially devastating home contractor scams, it is imperative to take the necessary precautions. So what should you do if you need a reputable home contractor, but want to avoid falling prey to those with malicious intentions?  You must conduct research on the party in question. Familiarize yourself with the individual you intend to hire, as an extensive background check could reveal any red flags associated with them.

The following steps will go a long way in preventing home contractor scams:

  • Contact the Better Business Bureau to see if the contractor in question has been the recipient of numerous complaints. Lack of the contractor’s presence within the BBB’s database will also serve as a red flag, as they are not a registered affiliate.
  • Ask for references and be sure to contact several of them.
  • Check to see if the company is registered with its state or your state’s division of corporations.
  • Request the contractor’s license number so that you may verify their business is recognized by your state’s Department of Professional Regulation or an accredited licensing board.
  • Search the internet for any information pertaining to the contractor.

After conducting extensive research, continue to practice caution, as home contractor scams can often be elaborate and deceiving.

Be wary of paying any upfront costs. More often than not, large upfront costs are a tell tale sign of fraud. According to Amy Matthews, a home contractor who has hosted numerous DIY Network and HGTV series, large upfront costs are indicative of fraud. It is common practice by reputable contractors to request approximately 30 percent up front. “You should never pay at the completion until you’ve really looked it over,” says Matthews.

In addition, she acknowledges that paying with a credit card is preferable. It is wise to use a traceable source of funds, such as credit cards or checks. This will give you a record of the payment for the authorities and improve the odds of getting your money back if you fall victim to a home contractor scam.

Once a proposal has been established, it is important to evaluate any plans or blueprints made available. Fairly elaborate jobs will most likely require similarly elaborate plans. Make sure the job matches the contractor’s intentions.

“The less gray areas there are, the better off homeowners will be,” says Nicholas Iarocci, owner of a home contracting company that services the New York City area. According to Iarocci, detailed plans can “make the homeowner aware of possible additional expenses,” which serve to determine whether or not the contractor uses ethical practices. It is not uncommon for contractors to purposefully overcharge for their services.

Even ethical contractors can serve to ruin your financial standing unintentionally. “If an insured contractor brings a day laborer or an employee that’s not on the books, and they get injured, the property owner is directly affected,” says Iarocci. “I collect certificates of insurance from my subcontractors.”

With the following in mind, never allow yourself to be rushed into a project. Home contractor scams deliberately take advantage of the confused and impatient. The speed in which they promise to complete a job acts as incentive for potential victims. If someone offers to do a really quick job on your house for a really low price, and it sounds too sound to be true, it probably is.”

If you need the assistance of a home contractor, give us a call! We’ll be glad to refer you to licensed contractors who are helping existing and past clients. 775-432-6300

By Than Merril

Filed Under: archiveReview, Blog, Homeowner Tagged With: contractor, contractor scams, contractors

Do I have to be concerned with building codes and permits?

Depending on how your contract is written with the home improvement professional, either you or the contractor will be responsible for securing city or county  approval to perform most remodeling jobs.

Building codes set minimum public-safety standards for such things as building design and construction. Codes vary from one county and city to the next, but specialized codes generally exist for plumbing, electricity, and fire. Each usually involves separate inspections and inspectors. 

In addition, permits are generally required when any structural work is planned or the basic living space of a home is altered. They generally cover new construction, repairs, alterations, demolition, and additions to a structure. 

Some jurisdictions require permits to be posted in a visible spot on the premises while the work is being done. Besides structural changes, permits also may be needed to cover the installation of foundations for tanks and equipment, as well as the construction or demolition of ducts, sprinkler systems, or standpipe systems.

Failing to get the necessary permits can lead to unwanted headaches. At one extreme we've witnessed home owners having to remove a structure from their property at the time of sale due to lack of permits. We've also seen all too often the sale of a home fall through when it was discovered that permits were not obtained adn subsequently that the work done was not to code and cannot be easily corrected. 

If you are buying a home and notice changes or an additional to the property, it would be prudent to ask the seller if permits were obtained and to ask for copies. You can also check with the city or county as appopriate for permits.

Filed Under: Blog, FAQ Tagged With: contractor, contractors, Home Improvement, permits, remodeling

Once I choose a contractor, what items should be covered in the contract?

According to the National Association of the Remodeling Industry, a well-written contract should contain the following information:

  • The contractor’s name, address, telephone and license number, if applicable;
  • Details about what will and will not be done;
  • A detailed list of materials for the project, including model, brand name and color.
  • The approximate start date and substantial completion dates.
  • A written notice of your right to cancel a contract within three business days of signing, without penalty – provided the contract was solicited at some place other than the contractor’s place of business or appropriate trade premise.
  • Financial terms that are spelled out clearly, including payment schedules and any cancellation penalties.
  • A one-year minimum warranty identified as either “full” or “limited” to cover materials and workmanship, as well as the name and address of the party who will honor the warranty.
  • A binding arbitration clause, in the event a disagreement occurs.

You may also want to include a statement that you will not be responsible if payment to the contractors’ subcontractors and suppliers are not made. You may also want to establish that the contractor should obtain all the necessary permits and that all blank spots in the contract be filled in with phrases like “does not apply.”

Filed Under: Blog, FAQ Tagged With: contractors

Contractors – How to identify one who is less than reputable?

There seem to be no shortage of contractors; and there are certainly many great contractors, but how do you identify one who is less than reputable?

They often give themselves away.

The telltale signs:

  • Pressure is used to get you to sign a contract;
  • Verifying the contractor’s name, address, phone number and credentials is impossible;
  • Cash payments are only accepted, not checks made out to a company;
  • Payment for the entire job is demanded up-front, whereas most remodelers typically require a down payment of 25-50% of the contract price for small jobs and 10-33% for large jobs.
  • The contractor suggests that you borrow money from a lender the contractor knows, which could make you the target of a home improvement loan scam – a sure way to lose your home;
  • The contractor offers information that is out-of-date or no longer valid;
  • No references are available;
  • An inability by the contractor to communicate the project well;
  • Exceptionally long guarantees are offered;
  • The contractor fails to listens and talks over you; and
  • The contractor fails to notify you of your right to cancel the contract within three days; this “right of recision” is required by law and allows you to change your mind without penalty if the contract was provided at a place other than the contractor’s place of business or an appropriate trade premise.

Next week we'll cover provide some tips on what what items should be covered in the contract once you have chosen a contractor.

If you need some recommendations of contractors to speak with, give us a call.

 

Filed Under: Blog, FAQ Tagged With: contractor, contractors, Home Improvement, remodeling

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