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5 Things You Need To Know About Home Inspections

by Galand Haas

Good Morning!

If you are purchasing a home, one of the most important steps is to have the home you are purchasing inspected by a professional home inspector.  This way you will not have any surprises after you have purchased your home.  The following is an article from "Realty Times" that gives you some suggestions on how to get your home inspected.

If you're hiring someone to inspect the home you want to buy, or you're a seller trying to find out if there are any hidden problems that need fixing before you put your home on the market, here are five things you need to know:

1. You can choose your home inspector. Your real estate professional can recommend an inspector, or you can find one on your own. Members of the National Association of Home Inspectors, Inc. (NAHI), must complete an approved home inspector training program, demonstrate experience and competence as a home inspector, complete a written exam, and adhere to the NAHI Standards of Practice and Code of Ethics.

2. Home inspections are intended to point out adverse conditions, not cosmetic flaws.

You should attend the inspection and follow the inspector throughout the inspection so you can learn what's important and what's not. No house is perfect and an inspection on any home is bound to uncover faults. A home inspector will point out conditions that need repair and/or potential safety-related concerns relating to the home. They won't comment on cosmetic items if they don't impair the integrity of the home. They also do not do destructive testing.

3. Home inspection reports include only the basics.

A home inspector considers hundreds of items during an average inspection. The home inspection should include the home's exterior, steps, porches, decks, chimneys, roof, windows, and doors. Inside, they will look at attics, electrical components, plumbing, central heating and air conditioning, basement/crawlspaces, and garages.

They report on the working order of items such as faucets to see if they leak, or garage doors to see if they close properly. Inspectors may point out termite damage and suggest that you get a separate pest inspection. The final written report should be concise and easy to understand.

4. Home inspectors work for the party who is paying the fee.

The NAHI Standards of Practice and Code of Ethics clearly state that members act as an unbiased third party to the real estate transaction and "will discharge the Inspector's duties with integrity and fidelity to the client." A reputable home inspector will not conduct a home inspection or prepare a home inspection report if his or her fee is contingent on untruthful conclusions.

The inspector should maintain client confidentiality and keep all report findings private, unless required by court order. That means it is your choice whether or not to share the report with others. If you're a seller, you don't have to disclose the report to buyers, but you must disclose any failure in the systems or integrity of your home.

5. Inspectors are not responsible for the condition of the home.

Inspectors don't go behind walls or under flooring, so it's possible that a serious problem can be overlooked. Keep in mind that inspectors are not party to the sales transaction, so if you buy a home where an expensive problem surfaces after the sale, you won't be able to make the inspector liable or get the inspector to pay for the damage. In fact, you may not be entitled to any compensation beyond the cost of the inspection.

As a buyer, you need the home inspection to decide if the home is in condition that you can tolerate. You can use the report to show the seller the need for a certain repair or negotiate a better price. You can also take the report to a contractor and use it to make repairs or to remodel a section of the home.

One thing you should not do when buying a home is skip having the home inspected because of cost or undue pressure by the seller. A home inspection is reasonable, it can save you money in the long run, and it's required by many lenders, particularly for FHA loans. There's a reason why buyers should beware, and a home inspection gives you the information you need to make a sound buying decision.

Have An Awesome Week!


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Local Market Activity for June 2016

by Galand Haas

Good Morning!

Here are the statistics for the June Real Estate market in the Eugene and Springfield area.  As you can see the month of June shows that our local market continues to be extremely strong and that the inventory of homes for sale continues to decline.  In fact 1.8 months of inventory is the lowest that I can remember seeing in this market.  Of concern is the fact that home prices continue to rise at a rapid pace.  In fact, home values now show that they are at or slightly above pre-recession numbers. This is a concern, because at some point, we will begin to see price resistance from buyers.  The fact that the local economy is not keeping up with home price increases means that many buyers are now going to be taken out of the market because they can no longer afford to buy at the new higher prices.  When we hit this point, it will put pressure on pricing and the market will begin to trend downwards.  Any spikes in mortgage interest rates at this time could be very negative to a healthy Real Estate market here.  

If you are consideriing the sale of a home, this may be your last opportunity to take advantage of this strong sellers market.

June Residential Highlights

Real estate activity in Lane County was mixed this June. Closed sales (524) rose 18.8% compared to May 2016 (441), but fell 2.2% short of the 536 closings recorded last year in June 2015. New listings (671) rose 2.1% over May 2016 (657) but fell 1.3% short of the 680 new listings offered last year in June 2015.

Pending sales (555) ended 0.4% short of June 2015 (557) and were 2.1% short of the 567 offers accepted last month in May 2016.

Inventory decreased to 1.8 months in June, with total market time decreasing to 49 days. Lane County ended June with a total of 959 active residential listings.

Year to Date Summary

Comparing the first half of 2016 to the same period of 2015, closed sales (2,379) have increased 9.9% and pending sales (2,852) have increased 5.8%. New listings (3,402) have decreased 5.3%.

Average and Median Sale Prices

Comparing 2016 to 2015 through June of each year, the average sale price rose 7.4% from $241,300 to $259,100. In the same comparison, the median sale price rose 6.2% from $219,000 to $232,500.

Have An Awesome Week!


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This Month in Real Estate July 2016

by Galand Haas

Good Monday Morning!

Nationally, home sales continue their upward trend and home prices continue to climb as well. 

Locally, our home sales remain strong as well, but as I have been saying, change is in the air.  The numbers don't show it yet, but right around mid June I feel the Real Estate market in the Eugene and Springfiel made a change.  I am watching homes that were selling in days with multiple offers now sit for weeks without an offer and I am seeing fewer new buyers entering the market.  The inventory of homes in many areas and price ranges is also creeping up.  This could be seasonal, but I think that it is more than that.  Mortgage interest rates have actually decreased over the past seveal weeks, so the change most likely is the result of home prices increasing.  Price resistance can put the dampers on a market just as fast as interest rate hikes. 

In the Eugene and Springfied area we have watched home prices increase steadily now for several years and now affordability is again becoming a factor.  Two years ago, when home prices were down from the recession and mortgage interest rates were at historic low levels the market here was perfect for buyers and many took advantage of the situation, which caused more demand, lower home inventories and competition.  As the price of homes increased the attractiveness of our local market has changed and now buyers are having a harder time quailifying for loans and dealing with the higher mortgage payments.  It's all a cycle.

Have An Awesome Week!

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Contact Information

Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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