by neil kearney | Nov 17, 2009 | For Buyers
Purchasing a home is a huge undertaking and is most likely your 
largest investment. It is therefore wise to do everything in your power to minimize your risks. The first step is to hire a competent Realtor, that is where I come in. Your Realtor can then lead you through the process of intelligent due diligence. Some common items to consider: Is the asking price justified for comparable sales? How does the homes condition compare to others on the market? Are there any obvious flaws? What is the potential resale potential of the home? If the property is part of an HOA, can I live with the rules and the assessments? Can I live with the neighbors? etc…
Once these basic questions are answered a buyer usually then looks at the home more in depth. In our area a general home inspector is hired to look at plumbing, roof, electrical, appliances, foundation, drainage, furnace, etc. If there are any “red flags” he recommends that the buyer bring in a specialist to assess the situation and possibly bring in a bid. Another usual inspection in our area is a radon test. Usually the inspector administers the test for an added fee and provides the results of a 48 hour test.
Another inspection that is seldom used but very useful in older homes especially, is the video sewer line inspection. Some plumbers have a special camera that video tapes the sewer line as it exits the house, runs under the yard and enters the city line. The cost for the test runs around $300, but if it is an older home or one with a bunch of trees in the front yard, it can be well worth the cost. At the conclusion of the test the buyer ends up with a video of their sewer line with any breaks in the line marked in the yard. Costs to re-do a sewer line are usually above $4,000 so this is something that is best found out before closing.
The image above actually shows roots growing into a sewer line.
by neil kearney | Apr 27, 2009 | Uncategorized |
When you have been around as many real estate transactions as I have, you begin to anticipate the possible challenge points in a transaction. This is one of the reasons you hire an experienced professional, isn’t it? Anyway, when I have a buyer interested in a house which was built in the early 1970’s my thoughts immediately turn to aluminum wiring. 
During the 1970’s aluminum wiring was extensively used instead of copper in many houses. Since that time aluminum wiring has been blamed for many house fires. But don’t panic if your house has aluminum wiring. Aluminum wiring, when properly installed, can be just as safe as copper. Aluminum wiring is, however, very unforgiving of improper installation. It is at the connections where the latent danger can linger.
When purchasing a home that was built in the early 1970’s make sure your inspector checks for the presence of aluminum wiring. If it is present, the inspector should check each receptacle to see if there is any loosening or signs of overheating. What happens to the wire over time is a gradual loosening of the connection which causes oxidation and overheating. If the connection becomes very loose the electrical current can arch and spark. Most homes never reach this stage.
Once the presence of aluminum wiring is established it is important to know that in most cases it is not an immediate hazard. It has been functioning for over 30 years and caution going forward is advised but it is not a reason to run the other way. The wiring can be fixed without tearing apart the walls.
Solutions:
- The traditional fix for aluminum wiring was to pigtail (attach) a small portion of copper wire to the end of the aluminum wiring and then attach the copper to the receptacle. This has worked well but some feel that the connection between the aluminum and the copper can come loose over time.
- Another more recent (and more expensive) solution is a crimping method. It is the same idea but it uses a special tool that fuses the copper to the aluminum wiring permanently.
My inspection philosophy is that it is a time where the buyer gathers as much information about the house as possible so that they know what to expect in the future. It is not a time to use every minor ding to re-open price negotiations, it is a time to identify the major safety and maintenance issues and come to a win-win solution with the seller. It is everyone’s goal for the sale to go through and the inspection can be handled in such a way that the buyer get’s a good house and the seller pays what is fair.
Here are a few links with detailed information on aluminum wiring.
http://www.alwirerepair.com/
http://www.inspect-ny.com/aluminum/aluminum.htm
by neil kearney | Apr 15, 2009 | For Buyers, Real Estate 101
Boulder County is located in a zone of high potential for elevated radon levels in the air. In real estate transactions radon almost is always an issue. It is almost always tested for and when the reading comes in at a level above 4.0 pCi/L (picocuries per liter) then the Buyer and Seller negotiate what will be done and who will pay. But first some background that can be found EPA’s Radon Website
What is Radon?
Radon is a gaseous radioactive element having the symbol Rn, the atomic number 86, an atomic weight of 222, a melting point of -71ºC, a boiling point of -62ºC, and (depending on the source, there are between 20 and 25 isotopes of radon – 20 cited in the chemical summary, 25 listed in the table of isotopes); it is an extremely toxic, colorless gas; it can be condensed to a transparent liquid and to an opaque, glowing solid; it is derived from the radioactive decay of radium and is used in cancer treatment, as a tracer in leak detection, and in radiography. (From the word radium, the substance from which it is derived.) Sources: Condensed Chemical Dictionary, and Handbook of Chemistry and Physics, 69th ed., CRC Press, Boca Raton, FL, 1988.
No immediate symptoms. Based on an updated Assessment of Risk for Radon in Homes, radon in indoor air is estimated to cause about 21,000 lung cancer deaths each year in the United States. Smokers are at higher risk of developing Radon-induced lung cancer. Lung cancer is the only health effect which has been definitively linked with radon exposure. Lung cancer would usually occur years (5-25) after exposure. There is no evidence that other respiratory diseases, such as asthma, are caused by radon exposure and there is no evidence that children are at any greater risk of radon induced lung cancer than adults.
Based on a national residential radon survey completed in 1991, the average indoor radon level is about 1.3 picocuries per liter (pCi/L) in the United States. The average outdoor level is about 0.4 pCi/L.
So, you can see why it comes up often in a real estate transaction. Of course some people are more worried than others and this becomes part of the art of negotiation. During the inspection period (which is usually between 10 days and 2 weeks long) a buyer has the option to have a radon test performed usually by a general home inspector. The cost is somewhere around $100 for the test and it takes 48 hours to perform. If the results of the test come in above 4.0 pCi/L then it is very common for the Buyer to ask for the Seller to mitigate so that the radon level inside the habitable part of the home (not crawlspaces etc.) is below 4.0 pCi/L. The cost for mitigation can vary but in our area the typical cost is between $800 and $900.
What is done to mitigate the radon level in a home?
Most often a 4″ PVC pipe is inserted into a drilled hole in the basement slab. This pipe is routed to the outside of the home and above the roof line. Somewhere along the pipe a fan is installed that will run continuously and will suck the sub-slab air to the outside creating a vacuum. The diverted air stream does not allow radon to seep up through the concrete into the house.
Radon is a fixable problem and it is a good idea to have the test done. I tell my clients that even if they are not concerned about the risk, most likely the people who buy the house from them will be.
by neil kearney | Apr 1, 2009 | For Buyers, Real Estate 101
The discussion of lead based paint comes up in every transaction that involves a house built before 1978. All sellers and landlords are required to disclose in writing the knowledge of any lead based paint hazards and provide results of any previous tests that they may have to any potential buyers or tenants. 
Lead based paint has been linked to health difficulties primarily in children but can also be hazardous to adults. Most older houses have lead paint somewhere under the layers of paint in the house. So what is the hazard? If the lead paint is contained it is not an immediate hazard. Only when the paint is released by chipping, sanding etc. does it become a hazard. Once released, it can be in the air, contained in dust or it can be in exterior soil.
In a real estate transaction a Lead Based Paint Disclosure must be filled out and signed by the Seller, Buyer and both real estate agents. This disclosure must be signed before or concurrently with the purchase agreement. If it is done after the fact, heavy fines can be placed on the Realtors. Along with the disclosure, a booklet explaining the hazards must be received by the buyer.
The buyer has the right to have the house inspected for lead based paint hazards, but in my experience I have never seen a buyer have the tests performed. The testing is expensive and can be invasive (samples). I think the object of the program set forth by HUD is education of the public and at least in the the properties I have been involved in, I think that goal is being fulfilled.
The EPA has a very informative websitewhich has more information if you are interested in learning more.
The cabin shown above is still standing, although I’m sure it is a lead based paint hazard. It is my grandfathers old cabin in MN near Itasca State Park. He passed away just over 10 years ago and my cousin and I have since built the new cabin below on a different location on the land overlooking Gill Lake. 
{I have recently converted my blog to a new squarspace platform. During the conversion all of my old posts made the journey but the functionality of the search has not come through cleanly. This is a previously published post that contains information that is still a good resource so I will periodically re-publish a few select topics so that they are searchable on the site.}
by neil kearney | Jun 27, 2007 | For Buyers, For Sellers
Video Sewer Line Inspections
Purchasing a home is a huge undertaking and is most likely your largest investment. It is therefore wise to do everything in your power to minimize your risks. The first step is to hire a competent Realtor, that is where I come in. Your Realtor can then lead you through the process of intelligent due dilligence. Some common items to consider: Is the asking price justified for comperable sales? How does the homes condition compare to others on the market? Are there any obvious flaws? What is the potential resale potential of the home? If the property is part of an HOA, can I live with the rules and the assessments? Can I live with the neighbors? etc…
Once these basic questions are answered a buyer usually then looks at the home more in depth. In our area a general home inspector is hired to look at plumbing, roof, electrical, appliances, foundation, drainage, furnace, etc. If there are any “red flags” he recommends that the buyer bring in a specialist to assess the situation and possibly bring in a bid. Another usual inspection in our area is a radon test. Usually the inspector administers the test for an added fee and provides the results of a 48 hour test.
Another inspection that is seldom used but very useful in older homes is the sewer line inspection. Some plumbers have a special camera that video tapes the sewer line as it exits the house, runs under the yard and enters the city line. The cost is usually around $300 but if it is an older home or one with a bunch of trees in the front yard it can be well worth the cost. At the conclusion of the rest the buyer ends up with a video of their sewer line with any breaks in the line marked in the yard. Costs to re-do a sewer line are usually above $4,000 so this is something that is best found out before closing.
The image above actually shows roots growing into a sewer line.
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largest investment. It is therefore wise to do everything in your power to minimize your risks. The first step is to hire a competent Realtor, that is where I come in. Your Realtor can then lead you through the process of intelligent due diligence. Some common items to consider: Is the asking price justified for comparable sales? How does the homes condition compare to others on the market? Are there any obvious flaws? What is the potential resale potential of the home? If the property is part of an HOA, can I live with the rules and the assessments? Can I live with the neighbors? etc… 
