INSPECT LV

Las Vegas / Henderson NV Home Inspections & Real Property Condition Consultant

Inspect LV

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VA and FHA Inspections

VA FHAWhen it comes to VA and FHA home purchases many people often ask if we can do an FHA or VA inspection.  In the State of Nevada all home inspectors are required to be licensed.  The licensing law was constructed to conform to all state and federal standards.  So the answer to the question is; yes.

But this brings to light a common misconception.  What many people fail to understand is that the VA or FHA loan is not being provided by the VA or FHA (except in rare circumstances).  The VA or FHA are only guaranteeing the loan.  The loan is being provided by a commercial non-governmental lender.

Because the VA or FHA guarantee is a component of the loan it is the lender is tasked with ensuring the loan meets the requirements of the VA or FHA in order to receive the associated loan guaranties.  In those requirements are verification that the property meets certain health, safety, and habitability standards.

The home inspector is not employed by the lender.  The home inspector is employed by the Buyer.  99.999% of the time the home inspector has no knowledge of who the lender is. The inspector does not provide a copy of the inspection report to the lender (unless specifically requested and only with permission).  So it is not the home inspector’s job to verify whether the home meets or exceeds VA or FHA standards; it is the lenders responsibility.

How then does the lender verify the property meets the required VA or FHA health, safety, and habitability standards?  It’s accomplished through the appraiser.

Appraisers are well versed in VA and FHA health, safety, and habitability standards.  They will review the home to ensure it conforms.  When they find issues that do not conform to VA or FHA health, safety, and habitability standards they call them out as appraisal conditions.  Appraisal conditions become underwriter conditions.  Underwriter conditions are conditions that must be satisfied (corrected) in order for the loan to fund.

Here are the most common issues found in Las Vegas homes that result in appraisal conditions:

Plumbing

  • Seismic Restraint Straps (AKA Earthquake straps) missing on the water heater.
  • Defective plumbing installed (i.e. KITEC)
  • Plumbing leaks; faucets, toilets, etc…

Roofing

  • The appraiser is required to inspect the attic for evidence of possible roof problems.
  • The roofing must be sound. It must keep out moisture.
  • The roofing must be expected to last for at least two more years. If questionable the appraiser may require a roof certification.
  • Shingle roofing cannot have more than three layers of roofing.
  • If the appraiser determines there is the need for roof repairs and the roof already has three or more layers of shingles, the FHA requires a new roof.

Heating and air conditioning

  • All habitable rooms must have a functioning heat source.
  • The home must have functioning air conditioning. (This FHA requirement is regional and applies to all homes in our region of the country)

Doors and Windows

  • All doors leading to the exterior must be relatively free of damage and functional.
  • The door between the interior of the home and the garage is required to be fire-rated, self-closing, and self-latching.
  • Crack window glazing (glass) is required to be replaced.

Interior issues

  • Handrails are required to be installed where appropriate.
  • Defective floor finish or covering (worn through the finish, badly soiled carpeting)
  • Damaged or worn out counter tops.
  • Damaged plaster, sheetrock or other wall and ceiling materials in homes constructed pre-1978 (lead based paint concern).
  • Trip hazards (including damaged and poorly installed carpeting)
  • All smoke alarms are required to be present and functional.
  • Exposed electrical wiring or evidence of improper electrical modifications.

There are other issues that the appraiser may call out.

Structural Soundness
Any defective structural conditions and any other conditions that could lead to future structural damage must be remedied before the property can be sold. These include defective construction, excessive dampness, leakage, decay, termite damage and continuing settlement.  All VA loans require a termite inspection to be performed.

Appliances

FHA requires properties to have working kitchen appliances, particularly a working stove.

Bathrooms
The home must have an operable toilet, sink and shower.  (An REO home that has been cannibalized and stripped of plumbing features cannot receive FHA or VA guaranteed funding)

Property Access
The property must provide safe and adequate access for pedestrians and vehicles. The street must have an all-weather surface so that emergency vehicles can access the property under any weather conditions.

Asbestos
If the appraiser suspects the home contains asbestos that appears to be damaged or deteriorating, the FHA requires further inspection by an asbestos professional.

Swimming Pools

Swimming pools must be operational to provide Contributory Value in the appraisal. The appraiser is required to report readily observable defects in a non-covered pool that would render the pool inoperable or unusable. If the pool water contains algae or demonstrates evidence of severely neglected chemistry the appraiser may require that the water be brought back to a normal operating condition.  Pools with unstable sides or structural issues may be required to be repaired or permanently filled in accordance with local guidelines.

Non-permitted additions and / or conversions

Often additions and remodels are not accomplished utilizing the benefits of the permit process.  Appraisers are not code compliance inspectors but they are familiar with what is typical and consistent with acceptable building standards and practices.  If the appraiser suspects an addition or modification is not in conformance with applicable building code the FHA may require that these items be brought to code. If FHA decides to approve the loan without that requirement, FHA will not consider the value of non-permitted items in its appraisal.

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Average Cost of a Home Inspection in Las Vegas

Home inspections average costs in Las Vegas can vary widely from only a few hundred dollars into the thousands of dollars!

Your cost will depend on several variables:

  • How large is the house?
  • When was it built? (some inspectors charge an additional fee for older homes, Inspect LV does not.)
  • Does it have a pool or spa?
  • Does it have a casita, guest house or outbuildings?
  • Do you want thermal imaging? (Many inspectors charge an additional fee for thermal imaging. Inspect LV includes infrared thermography at no additional fee.)
  • Do you have low-E windows and need to check to make sure they are properly oriented? (Most inspectors do not even have the tools to check this and we do not charge an additional fee!)
  • Do you trust that the sellers will perform all repairs properly and do not need a Repair Review inspection? (some inspectors charge an additional fee for Repair Reviews. Inspect LV includes one no-charge Repair Review, to verify Seller repairs prior to close.)

The average cost of a home inspection in Las Vegas for an average house with no pool or outbuildings is about $350.

Our home inspection fees are conveniently located on our website so you can get an estimate of what your Las Vegas home inspection will cost!

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Pre-Listing Home Inspections Las Vegas

The Pre-Listing Home InspectionPre-listing Home Inspections

I’m willing to bet that the reason not many real estate agents advise their clients to consider having a pre-listing home inspection performed is because they are not fully aware of the benefits this service provides.  If I may I’d like to outline the benefits a pre-listing home inspection provides and how the process works (or should work) with both the home inspection company and for the seller.

Benefits of a Pre-Listing Home Inspection

The number one benefit afforded by a pre-listing home inspection is that it demonstrates an advanced level of disclosure by the seller and is the number one best way to limit liability for anything structural or mechanical relating to the home.

A pre-listing home inspection is an attractive selling feature for marketing the home.  It demonstrates to prospective buyers that the seller is being forthright and transparent and is an indicator of the tone of the potential transaction.

Another benefit is that it can significantly reduce the amount of expense the seller could incur as a result of the buyers home inspection and reduce the cost of selling the home.  (We will go into detail on this below).

A pre-listing home inspection will reduce the potential for issues that may arise from the buyer’s home inspection that could derail the sale or, at the very least, add complications to the sale of the home.

processThe Process

A pre-listing home inspection is a two-part process.  At the initial inspection the intent is for the inspector to provide an in-depth inspection and get as “nit-picky” as possible.  The goal here is to identify each and every item a buyer’s inspector might find.  The inspection should exceed the scope delineated by NAC 645D.460-580, the minimum scope allowed by law.

Once the report is compiled the seller reviews the report and they make a decision on which issues they would want to address or correct.  Typically the seller would want to correct any significant issues that may influence the buyer’s decision to purchase.  Also typically the seller would want to correct any potential habitability and safety issues to prevent them from becoming appraisal or underwriter conditions during the purchase process.  Correcting any safety issues will significantly reduce potential liability.

Missing straps on a water heater is a very common appraisal “safety” issue that has impacted many home sales and becomes an appraisal condition.  When they become an appraisal condition then funding of the buyers loan will not occur until the straps are installed.  This often can cost the seller money because the appraiser needs to be paid to come back out and verify their installation.

Once the issues have been corrected the home inspector returns to the property to verify the repairs were properly accomplished.  The inspector then provides the seller with an addendum to the report outlining and documenting the repairs.

Advanced Disclosure

Once the pre-listing inspection is accomplished, repairs (if any) are performed, and the Repair Review report has beensrpd issued the Seller provides all the documentation as an addendum to the SRPD (Sellers Real Property Disclosure).

The SRPD and accompanying addendum(s) should be provided to the buyer simultaneously with the accepted offer to purchase (or very soon thereafter).  The Purchase Agreement should be very clear that the Buyer’s inspection cannot take place until the SRPD is reviewed and approved.

Buyer’s home inspection?  Absolutely!  Be very clear that the Buyer should be encouraged to have their own home inspection performed.  There are several reasons for this.  Most Buyers are reluctant to rely on “the Seller’s inspector”. Many prospective Buyer’s, in their exercise of due diligence and an abundance of caution, are wont to believe the that the Seller’s pre-listing inspection is entirely accurate.

But the most important reason that a prospective Buyer should have their own inspection performed is because Buyers would also lose any recourse by relying solely upon the Seller’s pre-listing home inspection.  The reason they would have no recourse is because they are not the client for whom the inspection was performed.  The seller is the client of the company who performs the pre-listing home inspection.

Generally not all the items identified in the pre-listing home inspection will be corrected by the seller.  There are generally deferred preventative maintenance issues and appearance issues that exist in any home.  As we all know many home inspectors will often include issues that are not significant structural or mechanical issues and repair requests can be filled with frivolous items.  When the Buyer’s inspector identifies any of these issues and the Buyer submits a request to have these same issues corrected the seller can point to the SRPD and that the issues were already disclosed and accepted.  This can potentially save the seller money, time, effort, and energy.

Our Expertise in Pre-Listing Home Inspections

One of the challenges we typically encounter on our Resale Home Inspections is restraining ourselves from providingPre-Listing Home Inspections a depth inconsistent with the purpose of the inspection.  A resale home inspection, that is -an inspection on a home that is or has previously been occupied, appearance and cosmetic issues are not appropriate to be commented upon.  But we have a great amount of experience on new construction home inspections where cosmetic and appearance issues that do not conform to minimum construction standards are stated and disclosed.

In our pre-listing home inspections we have a hall pass to be very nit-picky and we will call out deferred preventive maintenance issues as well as many appearance and cosmetic issues.  Examples of this include issues such as: the carpet needing cleaning; deteriorated caulking in bathrooms and kitchens needed to be renewed; burned out light bulbs; missing door stops; deteriorated pipe insulation on air conditioner lines; etcetera.

It needs to be very clear that one of the limitations in our pre-listing home inspection is that we will not provide referrals to specific contractors for any issues identified in our inspection reports.  Offering referrals could provide the appearance of an impropriety.  If we called out roofing issues on every inspection we could have a brother-in-law in the roofing business who would happily provide a referral fee for each job we provided.  In accordance with the ethical standards we maintain for ourselves we believe the appearance of a potential impropriety IS an impropriety.  We will not provide referrals to any specific contractors because we avoid entering any ethical gray areas.

bbbWe will provide sellers with guidance and direction to find the appropriate contractor from the Better Business Bureau of Southern Nevada.  We further recommend that any and all contractors have their licensing status verified with the Nevada State Contractors Board.

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Winterizing Las Vegas Homes Can Be Costly

Be Careful When Winterizing Homes.

winterizing-your-homeWinterizing homes.  This article is intended primarily for Listing Agents who have one or more vacant home listings. I write these articles to provide useful and beneficial information for real estate agents to aid them and their clients in making well informed and educated decisions. It’s my way of giving back to the community that has supported me in making a living for more than 25 years. This information can reduce liability potential, make an agent’s job easier and avoiding potential headaches.

Winterizing 101

0.03 (1)What does it mean when a Las Vegas home is “winterized”? Winterizing a home is when the water to the home is shut off and all the water piping (and the water heater) is drained. The reason for doing this is because water expands when it freezes and turns into ice. If this were to occur in a plumbing system it can result in severe damage. Winterized homes will also have a small amount of ecologically safe anti-freeze poured into the drains of the sinks, tubs, and showers. Enough anti-freeze is used to fill the P-traps to prevent sewer gases from entering the home. Anti-freeze is used because it doesn’t evaporate.

Winterizing is performed to reduce the potential for damage. There are alternatives available in lieu of winterizing a home. “Winterizing”, as described above, is only one method for reducing the potential for damage and it is NOT recommended.  This method of winterizing a home generally results in unintended damage.

Some of the damage caused by winterizing a home can be very expensive to correct and can cause a potential buyer to walk away from a home they loved enough to submit an offer to purchase.

Specific Damage

Most winterized homes have all the utilities turned off. In the winter months that means there is no heat in the home allowing the interior of the home to reach freezing temperatures. Most new home builders require(d) the homeowner to maintain the interior temperature of the home between 65 degrees Fahrenheit and 85 degrees Fahrenheit. Failure to maintain the specified interior temperatures almost always voids the warranty provided by the builder.

0.04 (1)Failing to maintain the interior temperatures of the home causes excessive expansion and contraction to occur to the sheetrock or drywall in the walls and ceilings of the home. The excessive expansion and contraction will generally demonstrate itself at the weakest point of the ceilings and walls: the jointed areas. Most home inspectors will call out these cracks as an indication of atypical or abnormal structural movement and recommend a Structural Engineer further review the issue.

Failing to maintain utilities to the home also causes other problems. The Las Vegas Valley is replete with expansive clay soil. To see where these soils are predominately located in Clark County click HERE.

Expansive clay soils absorb moisture and increase in volume, forcibly, when they becomes saturated. Conversely expansive clay soils will contract when they dry out. The American Society of Civil Engineers estimates that 1/4 of all homes in the United States have some damage caused by expansive soils. In a typical year in the United States they cause a greater financial loss to property owners than earthquakes, floods, hurricanes and tornadoes combined. The key to limiting damage is to maintain a constant moisture environment after construction.

Irrigation Control PanelShutting off all utilities to the home renders the irrigation or lawn sprinkler system inoperative and significantly increases the potential for damage to the home. The irrigation system needs both water and electricity for the control panel to operate. When all of the soil around the structure dries out it can (and often does) cause undesirable movement to occur to the foundation. This undesirable movement can be transferred to the structure and result in a myriad of problematic issues such as doors and windows out of plumb, lost seals in insulated window glazing, floor tiles losing the bond to the substrate (hollow floor tiles), and damage to framing members. Loss of consistent moisture to the site can also result in damage to walkways, driveways, and patio slabs.

Shutting off the water to the home also creates it’s own unique problems.  Many components in the plumbing system, particularly seals, are intended to remain wet or moist.  Shutting off the water to the home can cause seals to dry out and result in leaks when the water is restored.  In Southern Nevada home the number one contributor of mold issues is plumbing leaks.  It’s not uncommon for toilets to run after water is restored to the home necessitating toilet repair kits to be installed.

thumbs-downMany agents justify the winterizing of a vacant home because shutting off all the utilities decreases the operating expense for the home. But when the home inspection is accomplished and the inspector recommends a Structural Engineer to perform a further review because indications of atypical structural movement are observed; damaged windows need to be replaced; a flooring contractor is recommended to review the excessive cracks in the tile or tile grout; a door contractor is recommended to review the doors that will not close properly and the buyer decides to rescind the contractor or wants to renegotiate the price for the repairs that need to be accomplished it becomes clear that the act of winterizing a home is not economically justifiable.

Alternative Solution

A better plan for winterizing the home is this:

0.0009 (1)• Maintain all the utilities to the property. Keep the thermostat in the heat mode and set to 65 degrees Fahrenheit. Keeping the thermostat to this temperature will keep the interior of the home warm enough to prevent interior pipes from freezing and keep the home within the parameters specified by most home builders.

• Open all the interior doors in the home. This configuration will allow for even temperatures throughout the home.

• Set the water heater to the lowest setting above the vacation setting. Most water heaters are located in the garage. They are exposed to exterior ambient temperatures. When the water heater is set to the “vacation” setting it is not keeping the water tank warm; it is only keeping the pilot lit. The water in the tank must be protected from freeze.
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• If there is a hot water circulating pump present in the home (they’re generally located adjacent to the water heater in the garage) switch it off or unplug it. Many newer home are plumbed with cross-linked polyethylene (PEX) piping. PEX piping is a superior product that will not burst when frozen solid. It’s not uncommon to find PEX hot water circulating piping exposed above the insulation in attic areas where a significant amount of heat loss occurs.

• The settings on the irrigation control panel should be adjusted to the settings promulgated by the Southern Nevada Water Authority (SNWA). SNWA.com is an incredibly easy to use website where you can enter your address and it will instantly show you your watering group, what day of the week you should be watering, and how often you should be watering. Generally at this time of the year you should only be watering one day of the week.

resin rock• Protect the irrigation system and external plumbing components from potential freeze damage.  Install insulation over the irrigation, (and pool fill system if applicable) pressure vacuum breakers (PVB) or anti-siphon valves.  This can be in the form of a resin decorative rock or an insulated pouch.   Exterior hose bibs should be covered.   Click on the highlighted links to find these items individually at The Home Depot.

• Configuring the home in this manner also avoids needing the expense of “de-winterize” the home and avoids the time consuming hassle and challenge of reestablishing utilities for the home inspector and the appraiser once an accepted offer is tendered.

In Summary

Wintering homes can cause significant damage.  The damage can be costly to repair and may provide the perception to a prospective home buyer that the home has significant structural issues occurring.  It costs money to winterize a home and then additional money to de-winterize the home.  It takes a significant amount of time, effort, and coordination to reestablish water, gas, and electrical utilities to the home.  Pricing the home to sell will save the seller any significant costs of keeping the utilities established and greatly limit the potential for damage.

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Setting Buyers Expectations for the Home Inspection

I have a friend of mine who was a head chef at one of the top resorts here in Las Vegas.  A few years ago he decided he had enough of the corporate way of life.  He moved into a small beach house in Pacific Beach in San Diego and chip truckopened up a gourmet food truck.  I admire him a lot, not only for chasing his dreams but for actually attaining his dream.  We were discussing his venture when he told me, “It’s nothing like the food truck that you see on reality TV.  People think what they see on reality TV shows is real and nothing could be further from reality.”

I can completely relate.  I have a similar problem.  Many home buyers believe that what a certain home inspector (Holmes on Homes) does on reality TV is what they can expect when they have their home inspection performed.  What they don’t make clear on TV is that Mr. Holmes performs intrusive / destructive investigations.

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He performs these services for the home buyer who has given him permission to make holes in the walls and ceilings, tear off siding, etc…  A Real Estate home inspection is a non-destructive, visual inspection.  Here, in Las Vegas, home inspectors are forbidden- by law from damaging any surface in the conduct of their inspections.  Could you imaging a Real Estate home inspector walking into a home and start tearing out sections of the wall?  The Seller would come unglued!

There are two types of defects that exist in homes: patent defects and latent defects.  Patent defects are visible, latent defects are those defects that are hidden from view.  The scope of service for a Real Estate home inspector excludes any potential latent defects that may exist.  It is beyond the Real Estate Inspector’s ability to discover latent defects.  Advanced equipment such as infrared thermal imaging can increase the potential for a diligent inspector to discover latent issues but it cannot be guaranteed.

When a home buyer believes that their Real Estate inspector should find everything the inspector on TV would find it creates an unrealistic expectation where disappointment is sure to follow.  More than just causing disappointment an unrealistic expectation of the home buyer can wreak havoc on a real estate transaction and cause a buyer to walk away from a home that they loved enough to submit an offer to purchase.

It behooves real estate agents to take the time to sit down with their home buyers and discuss the scope of the inspection and the differences between deferred maintenance issues and issues of greater significance.  The buyer should be aware of the limitations involved and know what is included in the inspection and (equally as important) what is not reviewed in the scope of the service.

Setting realistic expectations in the home buyer will not only benefit the home buyer but all other parties to the transaction.

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