Part III: Selecting Properties: Where to Look, What to Watch For in VS .NET

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Part III: Selecting Properties: Where to Look, What to Watch For
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Here s what the property inspector will commonly assess: Garage, carport, and garden shed Steps, paths, and driveway Retaining walls separate from the building itself Fencing Septic field Surface water drainage and storm-water runoff Certain areas of your site may concern you even before you receive the property report These may fall outside the inspector s expertise or demand the attention of an accredited professional Advice or a second opinion from an engineer, lawyer, or other consultant simply helps further your knowledge and comfort with the decision you eventually make regarding the property
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Servicing and infrastructure: Serving it right
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Consider investigating the servicing (such as sewer, water drainage, electricity, cable, propane gas, and so on) provided to your property Age, capacity, and maintenance history are factors worth taking into account as you consider whether disruptions in the operation of your property are likely Although you may not have to bear the cost of repairing damage to municipal infrastructure, being without key services is extremely inconvenient You can check with the building department of City Hall as to what types of municipal utilities or servicing are currently available, and if not, when they will be available, if at all, and what projected costs there might be for users Privately delivered utilities such as telephone and Internet connections are worth factoring in, too More and more areas enjoy high-speed access, but it s still far from universal The level of Internet service in a particular area may affect how you use the property or position it to potential tenants
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Inspection reports
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Any given property report has the potential to deliver good, middling, or just plain bad news Sometimes the conclusions won t be news to you; occasionally they dredge up more information than you really wanted to know Beyond basic details such as the property s address, the date, and the extent of inspection, what information can you expect to see in a report And, more importantly, what do you do with it As you read the report typically a
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11: Doing the Due Diligence: What to Watch
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point-by-point assessment of the property that can run from just a few pages to hundreds of pages in length focus on areas of particular interest to you and future buyers These include the following: Reason for the inspection: This is a vital element because it indicates whether the inspection was routine or if a specific concern prompted it A report conducted as part of due diligence generally counts as a routine report Areas not inspected: As well as outlining the areas of the property that were inspected, the inspector will flag areas the inspection didn t cover Perhaps the areas were inaccessible, or some obstacle prevented an examination You may need to hire a specialist to investigate these areas if the inspector considers it beneficial Some specialists you may need to consider include electricians, plumbers, painters, drywallers, mechanical contractors, and pest control and extermination specialists A summary of the property s condition: The summary is the heart of a property report It will detail both the good and the bad of the property A list of significant problems: Problems flagged in the summary may require varying levels of attention The inspector will detail the most urgent Factor these into your negotiating strategy and your decision to purchase the property Serious problems may prompt you to decline the purchase altogether
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Inspection report to the rescue
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The information a property report brought to light proved especially helpful to Cindy and Jack They had been looking to buy a character house for some time, and eventually found one the current owner had renovated and was offering for sale at an affordable price As part of their purchase offer, they included a condition that a professional home inspector provide a report on the property within 10 days of their offer s acceptance The deal s closing was contingent on a satisfactory report The report was a real eye-opener It showed that the current owner had extended the house without first obtaining a local building permit The renos had extended the footprint of the house beyond the permitted setback distances from the property line, and also gave the house a larger area than that permitted on the lot In addition, the wiring was inappropriate for the building and a potential fire hazard The condition in the purchase offer allowed Cindy and Jack to walk away from the deal hassle-free By purchasing the property, they could have become liable for the unauthorized building extension (which the municipality could have asked them to remove), and the wiring would have had to be completely redone to comply with local building and fire codes The alterations to the home would have meant prohibitive costs, not to mention stress they didn t need
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