Considering Buying a Fixer Upper? Read this..

Buying and selling fixer-uppers can be a very profitable or costly business in San Francisco and Bay Area.

It’s important to follow some of the basic guidelines when considering “flipping” properties or buying a “fixer-upper”.

Your number one guideline is the location. Choosing the right location is very important, especially in San Francisco and Bay Area. Neighborhoods are evolving and extensive research on the evolution of the “desirable” neighborhoods could be a key to your success.

The price of the property also plays a big role in investment formula. There is a simple equation involved when calculating a number for an offer.

You should first add up all the costs involved in renovation of the property, which should be based on the property condition. Make sure you choose the right inspector for this in case you don’t know much about construction and remodeling in general.

You should be very careful when adding costs in connection with a remodel or “flip costs”. Make sure you include all the necessary labor and materials going into this effort. Choosing the right home inspector can also help, usually inspectors that are general contractors and who are actively involved in this trade can give you an idea of the cost right on the spot when performing your general inspection. In many cases,

You should deduct the price of the “necessary” repairs or “section-1” from the price of the home and try to make sellers pay for it. If possible – obtain three quotes from licensed general contractors to repair all necessary issues, make sure you ask the contractors about any other projects that arise from necessary repairs. For example if you are repairing a structural wall, there will be interior repairs associated with it since interior and exterior surfaces share a wall. Another example is when repairing or replacing a foundation, be ready to repair all the door jambs and window openings, some drywall work will need to be performed and the entire interior will most likely need to be painted due to multiple cracks and damage from re-alignment of the structural framing of the building. Contractors will not talk about this unless you ask them – they are interested in winning the project.

Always add 10% to all estimations, these funds should be used in case you come across any hidden obstacles or issues that need to be resolved.

It’s very important to have an inspection clause on your real estate contract. If needed, the inspection clause will help you back out of the real estate transaction. Last thing you want to do is to get stuck with a very bad investment.

Always be there at the time when prospective investment property is getting inspected, follow your inspector everywhere, ask questions. We also recommend sending all of your disclosures to the inspection firm ahead of time for review, many inspection companies will review documents for free, some charge a standard fee.
Create your own set of questions ahead of your inspection, ask your inspector as many questions as you want, after all – it’s your time to shine!

Most importantly – stay away from serious structural problems. Every investment should start with good bones. Replacement of foundation and extensive structural repairs are two of the most expensive building repairs known today.

Choosing the right inspection firm is like choosing your friend – choose wisely!

Bob the “Naked Inspector”

Many inspectors in Bay Area and San Francisco can be considered as “naked inspectors”. Naked inspector – someone who has no background in construction field, no proper certifications, no general liability insurance, no bond and most importantly no active General Contractors License.

It’s very important to have someone who is adequately certified and licensed perform your home inspection since buying a property is probably one of the biggest investments you are going to make in your life.

Some inspectors think it’s enough to get certified with one of the home inspector’s certification agencies and pay $435 a year to be officially called a home inspector. Bay Area Home Inspections thinks otherwise. We believe that your home inspection must be performed by a licensed, bonded and insured general contractor who is certified with multiple inspection certification agencies. Your home inspector must be a professional.

It’s also very important to have an inspector who is educated in asbestos abatement since most of the properties in San Francisco do have asbestos in many locations. As a short but informative example we can tell you a recent story about “Bob – the naked inspector”. Bob is obviously a made up name but this story is as real as foggy San Francisco morning.

Bob came to foggy Bay Area from another state, Bob really needed a job and he started looking for his next adventure in the city by the bay. Bob couldn’t find a job anywhere else and remembered that back in Minnesota he helped his friend with a remodel and wanted to find something construction field related here in Bay Area.
Bob heard about inspection certification agencies and decided to be an inspector, after a few calls and an evening spent going through simple and logical questionnaire online, Bob was confident that inspection field is his cup of tea. After one week of training Bob has paid one of the certification agencies $435 for a year membership and has created a very simple website online advertising himself as a certified home inspector.

As time went by, Bob established himself as a home inspector, he once came to a newly purchased Victorian house here in San Francisco, he has contracted with buyers that were renting the house with their two kids thinking of buying it from their landlord.
Bob was very happy that he just collected a few hundred dollars and went on with his inspection, the software he purchased with his $435 membership allowed him to quickly mark simple yes or no answers in his notebook therefore completing the inspection report on a fly.

Bob came down to the crawlspace of the building and started crawling around the ground looking at foundation and taking pictures. Bob didn’t really know what he was doing and had no idea that he was rubbing against duct piping with his body as he crawled underneath the house. The duct insulation was in fact wrapped in asbestos which was present in the insulation of the HVAC return system and in the fiberglass insulation of the flooring joists. Bob did not know much about asbestos. Bob did not know very much period. Bob was a naked inspector. Bob has created a life safety hazard for a young family with two kids by releasing billions of asbestos fibers into the living space of the house. Bob is now in big trouble.

Home inspection is a serious business and must be performed by licensed professionals!

Foundation Repair Costs

How much does it cost to fix a failing foundation?
In this example we are not estimating a major foundation repair.

In San Francisco Bay Area as well as other areas with similar climate, it is very difficult to provide an average cost for a minor foundation repair simply because there are so many variables. On average, costs have been reported as low as $250 for a very minor repair and as high as $48,000 for a piering repair system.

Your cost will be dependent on your particular situation and the type of foundation you are trying to repair. Most factors that impact cost include how accessible the sunken or damaged / cracked portion of the foundation is, the cause of foundation failure and the method of repair recommended by the structural engineer or inspection agency if properly certified and licensed.

Peering Cost – According to Erast Bagdasaryants of Eco Smart Builder Inc., “Foundation repair using “hydraulic piering” will cost between $18,500 – $58,000”
Foundation Repair Cost Breakdown:

• $800-$3,500 to hire a structural engineer
• $1100-$7,000 for soil reports from a geotechnical engineer
• $630-$1600 for a building permit with street parking
• $6,000-$14,000 for seismic work (if you live in an earthquake area)
• $2,000-$5,500 for hidden obstacles (tree roots, old repairs, deep footings)
• $3,640 per pier (repairs for an average size home require 12 to 18 piers)

If the cost of foundation repairs seem high to you, keep in mind that your home is one of the biggest investments in your life. In the end, the cost of the repair will be worth it because your property will be safe and marketable.

Hire Bay Area Home Inspections for your foundation inspection or call us for a free consultation.

Interesting Facts About Insects

Did you know that cockroaches are known to carry 34-50 types of bacteria, 6 parasitic worms and can trigger asthma attacks?

Could you imagine that one of the most dangerous insect in the world is actually the common housefly. They carry and transmit more diseases than any other animal or insect in the world.

Interestingly, some male spiders pluck their cobwebs like a guitar, to attract female spiders.

In the world, there are approximately 35,000 + species of spiders, 27 species are known to have caused human fatalities. Watch out for the Brown Recluse, Brown Widow and Hobo Spider, which are well know in Bay Area and San Francisco, these three are venomous.

When the only queen ant dies, so does the entire colony, because no new workers are born. That’s why it’s so important for a qualified technician to use specific chemicals that will be carried to the queen; otherwise those ants will never go away!

Ants don’t ever go to sleep.

A flea can jump 130 times it’s height.

A regular brown cockroach can live up to nine days without its head, it’s dying from hunger afterwards. There are a total of 30 species known.

Everyone’s favorite – bed bugs prefer to hide in cracks and crevices during the daytime and come out to feed on the host’s blood at night, usually while the host is sleeping. Hosts are us.

A regular housefly can only ingest liquid material. Insects like flies regurgitate their food to liquefy the food that they are going to eat.

Female mosquito is the hungriest. The amount of blood a female mosquito drinks per serving is five millionths of a liter.

In perfect conditions, a nest of mice can deposit 18,000 droppings and produce 2,500 heirs in a six-month period.

San Francisco Home Inspection

Many homeowners come to us asking about finding a San Francisco home inspection service they can trust. A San Francisco home inspection doesn’t have to be an uncertain or stressful process. Home buyers have an equally strong interest in having a home inspected to ensure they don’t buy a house that has damage or faults that make it’s actual value less than the price at time of sale. Whether you’re a homeowner or in the market to purchase a house, make sure you contact our team of professionals to ensure your home inspection gets done the right way. Here are few thing you should know from the perspective of a home buyer or seller.

Home sellers should know that California case law states that it is the responsibility of the seller to disclose relevant facts regarding the sale of the property through a Transfer Document Statement. So if you’re selling one to four residential units, you are legally obligated to inform all prospective buyers of all conditions of the property you are selling. A listing inspection report can’t be used as a substitute for a Transfer Document Statement disclosure, however it does provide a means to give prospective buyers additional information from an unbiased third party when a professional inspector is used. This is why it’s always important to choose an independent inspection company like us.

If you’re a prospective buyer, you’ll definitely want the peace of mind that comes with a complete home inspection. This is likely one of the biggest, if not the biggest investment you’ll ever make in your life, so you need to make sure there aren’t any hidden flaws you don’t know about with the property you’re about to purchase. Whether the house is new, old, custom or tract built, every home in San Francisco needs to have an inspection when bought or sold to establish an accurate, fair valuation. If the home is of new construction, a home inspection can also be a vital way to ensure the quality of construction is acceptable, and help you address any issues before the construction project is complete. This will help you avoid further problems down the line by taking care of problems early before they can become bigger.

When looking for a home inspector in San Francisco, make sure you identify one who is trained and experienced in home inspection and has the proper insurance. Get your home inspection done right by choosing a trusted team like ours – a poor inspection job could cost you a heap of money if even one single defect is missed in the report.

Home Inspection Checklist

When it comes to judging the value and condition of a home, it is essential to thoroughly investigate the house by using a home inspection checklist. With the use of a home inspection checklist, you can identify major areas in need of attention and improvement to make sure the home provides the best value possible. It’s important to note that home inspections normally do not include certain hazards that require a specific license to investigate and identify, including asbestos, radon gas, lead paint, toxic mold and pest control. To help you better understand the home inspection process, we’ve provided an overview of what components are common in such a procedure. Remember that it’s always best to contact professionals like us to get your home inspection done the right way, so you don’t miss any major flaws that could cost you gravely later on in the future.

Basic procedure

The first place to start is usually the exterior of the home. A common strategy is to work around the house clockwise or counter clockwise, and visually scan the outside of the house from top to bottom, in a systematic way that ensures no area goes unchecked. After looking through the exterior for problems, the interior follows suit. Many investigators will begin at the bottom in the basement or first floor and work their way up, checking floors, walls, and then the ceiling of each room. Appliances and other items within the room are also inspected. No door should go unopened or unchecked. Furnaces, hot water heaters, electrical panels, plumbing systems and other infrastructure must all be checked. Electrical outlets, switches, fireplaces, closets and other features are all important to inspect.

Going beyond

Bay Area Home Inspections goes above and beyond industry standard, we test all of your interior and exterior walls for moisture concentration and create a moisture content map of the unit. Our analysis of the building/property issues is based not only on the exterior and interior conditions of the home but also the connection between two. Having the latest technology on the market available, Bay Area Home Inspection is able to provide a realistic evaluation of the property’s true condition quickly and efficiently.

Problems to watch for

There is a vast array of problems that an inspection needs to keep careful watch for.

• The roof. Is there sagging in the roof, or is it straight and level? Check between the rafters and trusses for sagging. Make sure the shingles of the roof are not in poor condition, showing rotting, warping, breaking or wearing. The roof must be sturdily connected to the wall and cannot show looseness. Are there roof vents or openings that shouldn’t be present?
• Chimneys. If the house has a chimney, make sure it isn’t cracking or broken. Bricks should not be flaking or missing, and all mortar should be intact. The chimney should not be leaning.
• Gutters and downspouts. It’s important to make sure there aren’t leaks or broken sections. They should always direct water away from the foundation.
• Check wall coverings for rotting or absent siding, and make sure it conceals the foundation wall. There should be no missing mortar.
• Windows and doors must be intact and sturdy, check for proper waterproofing at glazing and wood frame connections of the window panes.
• If there are decks or porches, always check for rotting and contact with earth. Always check the underside of the deck or porch if possible.
• Make sure the foundation looks solid. There should be no deformities like bowing or bulging, check foundation for cracks. Modern inspectors have the way of scanning foundation if needed.
• Driveways should have minimal or no cracks and always slope away from the home, check for proper drainage of the driveway.
• Basements should be free from water penetration and mold, Bay Area Home Inspections has available mold testing inspection where samples can be taken and inspected in the lab for type and concentration of the mold present in the building or property being inspected.
• Floors should not slope or sag, and should be free from water damage, check moisture concentration on floors especially in basement areas or areas below level of the ground.
• Walls should not show physical damage and the inner wall should not be exposed. Check for fire rating compliance especially between garage and living space.
• Similarly, the ceiling should not have cracks of sagging parts. Stains or visual damage can indicate the need for repair.
• The kitchen and bathrooms should have secure fixtures and all tubs and showers should be properly tiled and caulked to prevent leaks, all grout lines must be sealed and waterproofed. Faucets also should not leak and water pressure needs to be sufficiently strong. Check below countertops for rotting and make sure all the cabinets and drawers work with ease.
• Heating and cooling systems are crucial to check. Find out if they were recently inspected and serviced or not. Check for corrosion, rust and other wear and tear. All visible wiring should be in good condition. All wires must terminate safely inside electrical boxes.

Remember, these are just some basic examples. Always call professionals like us if you want to ensure nothing gets missed. Every house is different, and calls for a professional eye that knows what to look for in each case.

How to Find a Good Home Inspection Company

When it comes to buying or selling a property, home inspections are of the highest significance to all parties involved. Homeowners and homebuyers often wonder why home inspections are important and how to find a good, trustworthy home inspection company, so we’ve prepared a basic guide to explain some key aspects of the process.

As you’ve probably noticed in recent years, home prices fluctuate dramatically in the modern housing sector. To put it simply, a home sold in today’s market may not be worth the price at which it is listed at. A home inspection can be a homebuyer’s best friend, as it can protect them from paying too much for a home with faulty construction or facilities that only a trained inspector can identify and document thoroughly. For a homeowner who wants to sell their property, they may want to make sure that the price is as fair and competitive as possible so that they don’t sell their property below its true value.

So when it comes time to get a home inspection, you may wonder how you can find a good and trustworthy inspection company to get you the most accurate inspection report and value. First, start with experience. We strongly recommend choosing an inspector that has spent more than 15 years as a general contractor. We know firsthand that having this much experience means the inspector has pretty much seen it all, just as we have at Bay Area Home Inspections. Also, a good home inspector will take about two to three hours and can give you a thorough, in-person explanation of all findings and answer any questions you may have. A good inspector will compile a detailed report complete with high definition photos, whether each problem has a safety issue, major or minor defect, which items need replacement or repair, and which items are suitable in the near term but should be monitored carefully.

It’s important to know the prices for repairs of the items mentioned on the inspection report. Since Bay Area Home Inspections is also a general contractor, we will provide you with approximate prices for repair of items noted on the inspection report – it’s part of the service, all you have to do is ask.

In addition to the above, a home inspector should cover the following areas:

Exterior

Exterior Walls – The inspector should check for damaged or incomplete siding, cracks, excessively close soil to the bottom of the house that can be inviting for pests.

Foundation – The inspector will not be able to directly examine foundations that aren’t visible, but can check for cracks or settling that may be secondary evidence of foundation problems.

Grading – Grading should slope away from the house, and the inspector should let you know if this is the case, or will otherwise warn you if you need to change the slope or drainage to prevent water from flowing towards the house.

Garage or carport – The garage door, framing, ventilation to prevent carbon monoxide risks, and any water heaters present should be inspected.

Roof – Roofs should be checked by the inspector for damage or poor installation, including loose or missing shingles, loose bitumen connections, problems with drainage, issues with flashing installation, termination waterproofing and cracked or damaged mastic near vents. Gutters condition and slope should also be checked.

Interior

Plumbing – This includes faucets, showers, leaks, sinks and water pressure. Also, the type of piping should be identified if they are visible, and the location of the home’s main water shutoff valve should be located.

Electrical – The type of wiring in the home should be identified and all outlets should be tested and confirmed for functional ground fault circuit interrupters. The electrical panel should also be checked for safety issues.

Heating, Ventilation and Air Conditioning (HVAC) – The HVAC system should be inspected and the age of appliances like the furnace and air conditioner should be estimated. The inspector can also provide insight into the home’s ducting, whether it has leaks, and if your home has sufficient insulation and if there is asbestos insulation.

Water heater – The inspector should tell you how old the water heater is and determine if it is properly installed and secured. They should also let you know how many years it has left and what condition it’s in.

Kitchen Appliances – These are not always part of inspections, but sometimes the inspector will test kitchen appliances to make sure they are functional.

Laundry room – The inspector will ensure the laundry room is properly ventilated for fire safety.

Fire safety – If the home has an attached garage, the wall should be checked for the proper fire rating and to identify any damage. Smoke detectors should also be tested and checked for proper location and installation.

Bathrooms – Leaks, properly secured toilets, adequate ventilation and other issues should all be checked by the home inspector.

Home inspections can make a huge difference in the valuation of a house, so be sure to only entrust them with experienced inspectors. Remember that Bay Area Home Inspections has more than 15 years of experience in the field, and is always ready to help answer your questions. Don’t hesitate to call us if you need help with your home inspection needs.

Why Recurring Preventative Maintenance Inspections are Important

Many homeowners are reluctant to perform recurring preventative maintenance inspections, but don’t realize that they can go a long way towards bolstering the value of the home. Recurring preventative maintenance inspections are essential for retaining and growing the worth of your home, and can help you prevent more costly repairs from occurring in the future. For example, if you perform regular preventative maintenance inspections on your roofing, you may be able to identify problems like mold in small regions of the roof before they get out of control and require replacing the entire roof. Many professionals in the industry recommend spending between one to three percent of your home’s value on maintenance and repairs, so having inspections ensures that the money you spend is put to good use.

Knowing what recurring preventative maintenance inspections cover can help make it clear to you why they are so important for your home. A thorough inspection should include:

Monthly

* Checking fire extinguishers for expiration and ensuring the contents of powder extinguishers haven’t settled

* Testing smoke alarms

* Testing electrical outlets with a Ground Fault Circuit Interrupt (GFCI ) plug-in

* Checking the auto-reverse on garage doors if present to ensure the door reverses if an object is detected in its path

* Checking all heating and air conditioning units and the hot water heater for leaks, rust, damaged wiring or other problems

* Checking drains and piping

* Checking appliances like refrigerators, dishwashers and clothes washers for leaks

* Checking the refrigerator drain pan

* Inspecting kitchen exhaust filters in case they need to be cleaned or changed

* Thoroughly inspecting all ductwork, pipes, and vents for dust, leaks, breaks or rust

Annually

* Checking the furnace for good ventilation, proper flame, areas of rust on the furnace and piping leading to ducts or the water heater

* Testing of the water heater’s pressure valve

* Inspecting any fireplaces for creosote buildup

* Checking brick and mortar of the mantel or chimney for cracks

* Checking toilets for functionality and checking bathroom fixtures for leaks and grout

* Checking vents, refrigerator coils, smoke alarms and heat registers

Seasonally

* In the spring and fall, it’s important to check gutters, downspouts and traps in case they need to be cleaned

* Checking trim and wood

* Checking to see if any openings need to be caulked

* Checking gutters or sidings for need of repair

* Treating wood with preservatives

* Cleaning storm window openings

* Checking for worn weather stripping

* Removing debris

* Cleaning gaps in decks

* Checking the air conditioner for any need of cleaning

* Checking for mildew that may need cleaning

* Checking bricks, stucco or cement for cracks

* Checking the driveway in case it needs to be resealed

* Inspecting the roofing for bubbles, wrinkles, gaps or other damage

Recurring preventative home maintenance can feel like to a chore to many homeowners, but choosing a company like Bay Area Home Inspections can help you protect and improve the value of your home. Call us today for all your recurring home maintenance needs – we’ll tell you everything you need to know to safeguard your home.