Inspect LV

Download the FREE PDF Checklist “Due Diligence Is More Than Just a Home Inspection” Here:

The Due Diligence in a contract is more than just a home inspection! You need to verify, confirm and sign off that you are OK with every facet of the property. Here are some more very important items that should be included in your due diligence as a home buyer. Please bear in mind this list not an all inclusive list, this list is only designed to assist you with common due diligence items in the Las Vegas area market. You are a “full time investigator” when you are in the due diligence phase of purchasing your home. There may be additional items outside of this list for you to take care of as well!

1) Order Your Home Inspection

Inspect LV makes it easy to order a home inspection. You may call 702-210-5333 during regular business hours (M-F 8:30AM-5PM excluding Holidays.) Or you may order online 24/7/365.

We perform our inspections in accordance with NAC 645D and have written an article that details the Nevada Administrative Code that governs Inspectors of Structures in Nevada here: Realistic Expectations for the Home Inspection.

2) Verify & Obtain Historical Water Usage with Las Vegas Valley Water District (LVVWD)

Verifying water usage is very important. While INSPECT LV makes every effort to detect an underground water leak in the course of a home inspection (i.e. checking water meter for movement,) we do not have the ability to detect underground water leaks because this is a visual service as defined by NAC 645D, an underground leak may be detected by excessive water usage.

We have had many clients surprised when their water usage was off the charts and LVVWD notified the previous owners and the previous owners did not disclose this information to the new buyers. You may call LVVWD to verify water usage and historical use by going to their website, Las Vegas Valley Water District, or by calling 702-870-4194.  

3) Review Home Owner’s Association (AKA CCRS or HOA) Documentation

NRS 116.4109 definites the duties of resale properties located in an HOA. You may find the law here: https://www.leg.state.nv.us/nrs/nrs-116.html#NRS116Sec4109

After the seller sends a written request to the HOA, the HOA has 10 days to deliver the documents. The prospective purchaser has 5 days to review the documents and approve the documents. If a prospective purchaser disapproves the documents, they have the right to rescind the contract.

4) Verify School Zoning

If schools are important to you, utilize CCSD’s online zoning tools to verify school zoning. Do not rely solely on the MLS sheet provided to you. Click here to view CCSD zoning information and maps.

5) Verify Value with an Appraisal

You will want to verify the value of the home through several means:

a) an independent CMA that can be done by your real estate agent

b) a Nevada licensed appraiser

This is even if you are paying with cash. Try not to rely on online valuation sites as they may be unreliable sources. A trained human brain and eyeballs is your best source for valuation!

6) Check for Kitec Re-Plumb

If your home you are buying was built in between 1996 through 2006, Kitec may be an issue. Our inspectors do their best to look for signs of defective Kitec plumbing. If we find signs, or even if you are just curious, you may check to see if the home had a Kitec Re-Plumb as part of the class action lawsuit: Kitec Fitting Litigation Property Search

With defective Kitec plumbing fittings, it is not a matter of “if” there will be failure, it is “when”.

7) Review Title Report

You will receive a Title report from the Title agency that you selected on your contract. Review the Title report for any inconsistencies, liens, encumbrances or red flags. Ask your Title Officer if you have any questions.

Title and Escrow Officers are often the same people in the Las Vegas market. Make sure you return the information sheet promptly to your Escrow Officer when you receive it.

8) Verify Building Permits

In our article “Handyman vs Contractor“, we define what each separate entity is and what they do. Many flippers do not use licensed contractors so you will really want to verify permits issued if extensive work was done to the home you are purchasing!

Here are your resources for verifying permits:

City of Las Vegas

Clark County

City of Henderson

City of North Las Vegas

9) Review Seller’s Real Property Disclosure (SRPD) & Any Other Disclosures

Sellers are required, by law, to disclose property defects. This includes, but is not limited to “non traditional” sellers: investors, flippers, bank owned entities, etc. There are very few exclusions to this law. The law may be found here.

10) Set Yourself Up on Crime Map Alerts

Crime Mapping – is an excellent tool. You can plug the address of the home you are purchasing into the website and set yourself up for alerts to be sent directly to your email.

11) Verify Zoning

Verify Zoning with your local zoning office. There is always a lot of new construction in the Las Vegas valley and you will want to make sure that all land zoned around you is acceptable to your needs.

12) Order a C.L.U.E. Report

A C.L.U.E. report is also known as “Comprehensive Loss Underwriting Exchange”. You may obtain this report from your home insurance providers. Some insurers will provide it for free and some will charge a nominal fee.

You do not want to go through all of this due diligence process to find out in the end that the home you are purchasing is uninsurable due to a large claim in the past.

13) Research & Order Your Home Warranty

We have written an article about doing your due diligence with Home Warranty companies – 5 Things You Should Know About a Home Warranty or Home Protections Plan.

14) Review and Turn Around Documentation to Your Lender Promptly

If you are working with a Lender, make sure you turn around paperwork quickly to avoid last minute closing delays. Also, Do not make any large credit purchases because this could throw off your ratios.

15) Obtain Historical Electrical Usage & Pick Out a Pricing Plan from Nevada Energy

Call Nevada Energy to check historical Electrical usage specific to the house you are purchasing. You may call them 24/7 at 702-402-5555.

You may review different pricing schedules for Electricity on NV Energy’s Pricing Plans page.

16) Obtain Historical Natural Gas Usage from Southwest Gas

You may check historical gas usage on the house you are purchasing by calling Southwest Gas at 877-860-6020.

16) Review Nevada Sex Offender Registry

The Nevada Sex Offender Registry is located online: http://www.nvsexoffenders.gov/ Keep in mind that the Las Vegas area is very transient and people move around often.

17) Review the Nevada Residential Disclosure Guide (RDG)

The Nevada Residential Disclosure Guide should have been delivered to you through your real estate agent and can be found here: http://red.nv.gov/Content/Publications/RDG/

Go over this RDG with a fine toothed comb and make sure you leave no stone unturned.

18) Verify Watering Schedule with Southern Nevada Water Authority (SNWA)

You may verify your watering schedule with SNWA online: https://www.snwa.com/

Be sure to check your automatic sprinklers at the house during the final walk through and make sure you adjust to match the water scheduling requirements by season.

19) Order Uncommon Inspections That are Specific to the House & That Are Important to You

a) Termite: Termites are uncommon in the Las Vegas Valley, however VA loans still require termite inspections. We recommend Crispy Critters for your Termite inspections.

b) Lead Based Paint: Lead based paint is hazardous to young children who ingest paint chips. Lead based paint was outlawed in 1977 and it is extremely difficult to test for lead based paint as it is generally under several layers of paint. You can almost guarantee that if the home was built prior to 1977 that it does have lead based paint. You can buy lead based paint test kits at Home Depot (like these for less than $15) or any hardware store.

c) Septic: If your home has a septic system, we recommend Chief Septic for septic inspections.

d) Well or Public Water Quality: Nevada Division of Environmental Protection is a resource to get well water quality testing done: https://ndep.nv.gov/water/lab-certification/drinking-water-testing. 

You may also check the SNWA website for additional guidance: https://www.snwa.com/water-quality/treatment-testing/index.html

e) Mold: If moisture or suspicious biological growth was found during your home inspection you may want to find a qualified and experienced Mold inspector

f) Pest: Scorpions, Black Widows, Pigeons and Roof Rats are just a few of the common pests in the Las Vegas Valley. You may want to hire a pest inspector that is licensed by the State of Nevada Department of Agriculture. http://agri.nv.gov/Pest-Control/

20) Verify Repairs Were Done Correctly

If you have requested the seller to do repairs prior to close, make sure you verify that the repairs done quickly. Also obtain receipts for those repairs, Licensed Nevada Contractors must provide a statutory warranty for work done.

INSPECT LV includes ONE free Repair Review wrapped in the cost of their services. The reason why INSPECT LV provides a Repair Review, is because 80% of the time they are not completed correctly, subsequent Repair Reviews can be scheduled at an additional fee.

You may read Inspect LV’s Repair Review policy here:
https://inspectlv.com/reinspection-guidelines/

21) Final Walk Through & Release

A Final Walk Through & Release is vital at the conclusion of your escrow period. Mechanical, electrical and plumbing systems will fail from time to time during an escrow. Our insurance policy prevents us from providing the Walk Through for you. We highly encourage all of our clients to do their own Walk Through Inspection and test all systems to make sure they are running correctly. Your agent should have a checklist form located in Transaction Desk for you to complete this Walk Through in a thorough manner!

Finally…

Congratulations if you made it to the finish line and close on your property! We have an additional list of 4 more items you should do when you make it to the closing date:
https://inspectlv.com/4-items-a-buyer-should-do-when-they-close-on-their-home/

This checklist may be thorough however, is not all encompassing. You become an “investigator” when you purchase a home. Please seek additional guidance from your real estate agent, lender, home inspector, title & escrow officer, attorney, appraiser, etc to fulfill all the duties you need to do when purchasing your next home. Again, this checklist is not “all inclusive”. We are pleased to be a resource to the resource.

These are items you you should do before you close on your house – check on your home warranty provider!

1) Is the Home Warranty Company Properly Licensed?

Believe it or not, there are “fly by night” Home Warranty companies who are not licensed by the Nevada Department of Insurance. They should be licensed by the Nevada Department of Insurance.

If you want any recourse for an improperly denied claim in the future, you should check to make sure they are licensed by the Nevada Department of Insurance.  The complete list of licensed service contract providers is located here:  http://di.nv.gov/ins/f?p=600:35

Additional Nevada Department of Insurance service contract information:  http://doi.nv.gov/Consumers/Service-Contracts/ 

If you bought a policy from a company that is not properly licensed in the state of Nevada, you may email your complaint to:  [email protected].

It would also be a good idea to verify Nevada State Business license: https://www.nvsos.gov/sosentitysearch/ & Clark County Business license: https://www.clarkcountynv.gov/business-license/services/Pages/BLSearch.aspx

2) Verify the Company is in Good Standing at the Better Business Bureau “BBB”

The BBB has been around forever, well before Yelp, Google & Facebook reviews which can be manipulated by company employees.

Here is the Better Business Bureau’s information on purchasing a home warranty:  https://www.bbb.org/homewarranty/

If the company doesn’t exist with the BBB, that is not a good sign either!

3) Read the Entire Contract to Verify Coverages & Deductibles

Yes, read all that small print to verify that the large systems are covered.  It is best to do your homework BEFORE you purchase the Home Protection Plan or Home Warranty rather than AFTER the large system decides to fail.

4) They Like to Claim “Pre-Existing Condition” & Deny Your Claim

And throw the home inspector under the bus when it is time for a costly repair! 

If they wanted to show a pre-existing condition and refuse to believe your home inspection report when you purchased the home, they should have ordered their own independent inspection prior to issuing your policy to give specific exclusions. 

We do stand behind our reports and findings so if you find yourself in a predicament with a home warranty company, please contact us for guidance and direction before paying the home warranty company or their contractor any money. 

We are happy to be of service and a resource to the resource that you need!

5) If Your Home Warranty Company Denies a Just Claim…

… you may ask for another contractor within their network. If all else fails, request to speak to the customer services representative.  You may also file a complaint with the Nevada Division of Insurance if the Home Warranty Company is being unreasonable if your complaint is just and fair.

Home warranty companies should be sending out licensed contractors for repairs.  If the contractor does not provide proper service per NAC 624 https://www.leg.state.nv.us/nac/nac-624.html , you may file a complaint with the Nevada Contractor’s Board against the specific contractor. Also know the difference between a handyman and licensed contractor.

Also – always verify the licensing status of a Contractor before they enter your home!

Lastly…

… be cautious with any home inspection companies that provide “too good to be true” home inspection warranties or guaranties with their service.  Nevada Administrative Code governing licensed Inspectors of Structures prohibits a home inspector to make warranties or guaranties of any kind.  (NAC 645D.470.2) https://www.leg.state.nv.us/nac/nac-645d.html

All of the Above Being Said:

We always encourage our clients to purchase a home warranty plan to enjoy the benefits in the event of a major system failure. Not all Home Warranty Companies or Contractors are bad!

The fact is, systems that are running today may not be running tomorrow.  Systems break during escrow, after a home inspection and after you perform the final walk through on your new house and after close.  We are unable to guide or direct our clients to a certain company (an appearance of an impropriety IS an impropriety,) but do encourage our clients to do thorough research to find the best company to suit their needs!

Mold is a Naturally Occurring Substance

Many prospective home buyers become very wigged out about mold.  The truth is that they’ve been conditioned to become alarmed.  And many real estate agents and even inspectors have been conditioned to fear mold. Many home inspectors won’t even say the word “mold”.  The fact is mold spores are in the air you’re breathing right now.  It’s not a mysterious substance and it’s actually quite easy to address.

WHAT MOLD NEEDS TO LIVE…

We call it the mold triangle. Mold needs three components in order to become established and propagate:

• Mold spores
• Cellulose fiber
• Moisture

Without all three of these components mold cannot become established and grow.  

Again, the spores are ever present in the air.  Unless you want to live in a hermetically sealed bubble there’s nothing you can do to stop them from entering your home.  

Cellulose fiber is the food mold needs.  It is in wood, paper, and other building products.  Cellulose fiber is present in every home and again, there’s nothing you can do to control it.  

Moisture is the controllable element.  

MOLD CAN EASILY BE STOPPED IN IT’S TRACKS

In places like Portland, Oregon or Seattle, Washington there is enough moisture in the air that mold can literally grow on the sidewalks.  In Southern Nevada our atmosphere is very arid.  So arid that we can walk into a home that has been vacant for three weeks and find all the water has evaporated out of the toilets!  For mold to become established and grow here it has to be the result of a leak.  

If you ever have a “mold test” performed and mold is determined to exist the course of action will always be, “Locate and isolate the source of moisture”. 

DON’T WASTE MONEY ON A “MOLD TEST”

What many people call a “mold test” is actually mold sampling and analysis.  The most common type of sampling is through the collection of airborne samples that are sent off to a lab and analyzed for content.  This type of testing actually costs several hundred dollars.  

Having a “mold test” is a complete waste of money if there are no indications of mold present or if there are no conditions present that would be conducive to the establishment and growth of mold; a leak.

This is where infrared technology can save the consumer a lot of money.  IF the home inspector utilizes infrared technology in the normal course of his (or her) inspection then moisture that is not visible to the naked eye can easily be found.  

A MOLD SURVEY CAN NEGATE THE NEED FOR A COSTLY UNNECESSARY “MOLD TEST”

What is a mold survey?  A mold survey is a review of the home with infrared thermal imaging equipment to find moisture  If moisture is found then we have a condition that is conducive to the establishment and growth of mold and that warrants further action.  If there are no indications of moisture then a “mold test” is not warranted. 

RECENT EXPERIENCE…

In 2014 I performed a home inspection on a 1900 s.f., two story home where no indications of any leaking was found during the entire inspection.  Just prior to concluding the inspection I performed a mold survey and I discovered a blue area in the kitchen ceiling.  When I took away the thermal imaging camera the spot disappeared completely and the ceiling perfectly matched the surrounding area.  

When the area was further reviewed with a moisture meter the meter pegged at 100% moisture.  The master bathroom was located directly over the kitchen.  A thermal review of the bathroom sinks and the base of the toilet areas showed no indications of moisture.  Further investigation reveal an improperly caulked bathtub spout that was allowing water to enter the wall.  

The escutcheon ring was retracted at the shower head and a borescope was inserted into the wall cavity.  A borescope is a camera on the end of a long, flexible cable.  Stain indications were present in the wall cavity but there were no indications of any biological growth (mold).  No further testing was recommended. The prospective buyer was present and had the opportunity to use the borescope and see the interior of the wall. Ultimately the buyer requested the seller to correct the leak and did not see any justification for additional testing or repairs. The seller properly caulked all the master bath plumbing fixtures and in a subsequent Repair Review I performed upon returning to the property the plumbing was operated extensively and no leak indications were present.   

Many prospective homeowners become very concerned when roofing issues arise.  However most roofing issues are very common and simple to address.  The more people know about concrete tiles roofing the easier it is to allay fears and make intelligent and informed decisions. 
This article was written to provide prospective homeowners (and their agents) with the information they need to properly address roofing issues encountered with concrete tile roofs.

A concrete tile roof is often referred to as a “50 year roof”.
They can last a very long time. But they are not maintenance free.

Periodic maintenance needs to be performed to keep the roof in a sound and leak-free condition.

I’d like to give you some insight about concrete tile roofs as it pertains to home inspections.

Damaged Tiles

Typical Damaged TileThe most common cause for damage to concrete tile roofing is the wind.  The wind gets under the tiles causing them to shudder, shimmy, chip, and crack.  Sometimes the wind can even move the tiles out of proper position.  The majority of the roof tiles (the field tiles) are held in place with only one nail. What most people fail to understand is that concrete tiles do very little (if anything) to keep moisture out of the home.  In fact they’re not water tight at all.  The primary purpose of concrete tiles is to protect the tar paper or “felt”, as it is known in the building industry that is located under the tiles.  The felt is petroleum impregnated and repels water.  Oil and water do not mix.  Tiles do nothing to keep the water out of the structure.  Their purpose is to protect the felt.

Protecting the Felt

Without the concrete tiles installed over the felt the felt would be exposed to direct sunlight.  Direct sunlight carries strong ultraviolet rays.    UV rays cause the petroleum in the felt to evaporate.  When the felt dries out from prolonged exposure to UV rays the felt then loses its ability to repel water and the potential for a leak is high.  Concrete tiles protect the felt from the damaging ultraviolet rays and also act as an insulator.       It’s truly not difficult to figure out.  So to recap: 1) Cracked tiles are a common occurrence.  2) Concrete tiles do not repel water  3) Concrete tiles protect the felt.  4) The felt provides the watertight integrity for the roof.

Roofing issues in Conjunction with a Home Inspection

First you need to know that the majority of homeowners never do the required recurring maintenance associated with a roof.  It is extremely common for an inspector to find cracked or missing tiles or tiles out of proper position.  This is fine and nothing to get wrapped around the axle over.  Chances are this will not contribute to a water intrusion issue. But cracked or missing roof tiles is not an issue that should be ignored. If this issue arises on your inspection then it is very prudent to ask the seller to perform the required routine maintenance to the roof.   It is extremely critical that this deferred maintenance be performed only by a licensed and qualified Roofing Contractor.  It should never be performed by the homeowner or a Handyman Contractor.  Many Handyman Contractors lack the expertise to properly address all roofing issues.  When the work is accomplished by a licensed and qualified Roofing Contractor there is a much better chance that the work will be performed correctly. Regardless of whatever warranty the Roofing Contractor states he will honor the fact is the workmanship the contractor provides carries with it a statutory warranty of one year.  It is extremely important that the prospective homebuyer is provided with a copy of the repair invoice in order to be able to enjoy the statutory warranty benefits.

Repairs to be Performed

When a roofing contractor is retained the contractor should be directed to review the entire roof and all associated components and corrected as needed to restore the roof to a normal, sound condition. If cracked roof tiles are found then it is an indication that the homeowner has not properly maintained the roof. There are other issues that require routine maintenance on the roof.  The roof has penetrations installed. There are areas of the roof where vent pipes for plumbing, the furnace, the water heater, bathroom and laundry room fans penetrate the roof. These penetrations are sealed with mineral flashing. Mineral flashing is a “goopy” viscous product that is applied at the base of the penetrations. Mineral flashing is petroleum impregnated and repels water – just like felt. The mineral flashing is often exposed to direct ultraviolet rays from the sun. It needs to be renewed periodically. Painting the mineral flashing once it has dried will protect it from the ultraviolet rays of the sun and reduce the periodicity for this normal recurring maintenance issue.   When addressing cracked tiles it is important to understand that unless a concrete tile iscracked more than 25% of the face of the tile then the tile does not require replacement. It can be repaired with a cement epoxy.  If tile replacement is necessary it’s important that the homebuyer understands that the contractor should attempt to match the color as closely as possible but an exact match is often not possible. In fact, the Nevada State Contractors Board allows for up to 10% of the tiles to have differing colorations. So do not expect an exact match when tiles are replaced. Generally most Roofing Contractors will charge between $200 and $300 to perform the needed deferred maintenance. The cost can rise if additional issues are discovered. It is important that the Roofing Contractor provide an assessment of any felt that has been exposed to ultraviolet rays. If the Roofing Contractor determines that the felt has been damaged then a section of the roof may need to be lifted in order to replace the damaged felt and restore the roof to a sound condition. This can increase the cost of repairs considerably.