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Curiosity
Key to a
Thorough
Inspection
I Did Not Close Due to a
Buried Propane Tank. BY PAUL ROGERS
CTW Features
Can I Get My Deposit Back?
HOME INSPECTORS, it can be
assumed, are a naturally curious
Q: Just two days prior to closing on lot.Their job, after all, is to peek
the purchase of a residential property, into a structure’s nooks and
crannies and ferret out any evi-
my electrician and I were told by the dence of flaws.Where did that
seller, “Oh, by the way, that’s the cover water stain in the basement
for the buried propane tank.” The sell- come from? How old is that
er went on to tell us that the tank had roof and can it last another five
not been in service since he purchased years?
Curiosity practically is a job
the home 12 years earlier and was not in use because requirement – and a trait home-
it had been leaking. buyers would do well to emu-
I requested that the seller have this tank removed at late during the inspection. In
his expense, He refused and I did not close on the fact, the difference between an
property. The seller is now refusing to sign the adequate home inspection and
a great one results not simply
deposit release form. He believes that he is entitled to from an inspector’s curiosity
keep my $50,000 deposit. He is claiming that his but through the inquisitiveness
unintentional failure to disclose this tank does not of the homebuyer, as well.Ask
materially affect the value of the property and I the right questions, and you
should have closed. What do you think? won’t just help eliminate
unwanted post-closing surpris-
es but also learn invaluable
A: I think cooler heads should prevail. Unlike a buried oil information about your home
tank, which may represent environmental worries, a Buyer’s market: Eager to negotiate and lower the sale price, homebuyers today are carrying more clout. Sellers with too- and how to care for it.
propane tank is non-toxic.As Robert Baylor of the National high prices and unrealistic expectations are seeing their homes sit on the market for months rather than weeks. The questioning should start
Propane Tank Association explains, propane gas is “not before you even hire an inspec-
tor. Few people realize that
harmful to soil and water. Because propane does not endan- home inspecting generally is an
ger the environment, the placement of propane tanks either
above or below ground is not regulated by the
Environmental Protection Agency.”
If you want the tank removed, contact a local propane
Changing Expectations unregulated profession. Some
states do require a license, but
licensing is a minimal qualifica-
tion.

in a Changing Market
“Licensing, in each state
marketer.This is not a do-it-yourself job because the tank is that’s adopted it, sets a bare
heavy and may be connected to various pipes.When minimum standard that practi-
removed, the retailer should assure that all pipes are capped cally everyone meets,” says
properly.A list of local propane marketers can be found at Nick Gromicko, founder of the
www.usepropane.com. BY CHARLES SCUTT price expectations than are war- can now hope for one good National Association of
CTW Features ranted, considering the shift in offer. In our area, there are at Certified Home Inspectors.
In addition to dealing with the propane tank, you also the market,” says Ron Roth, prin- least eight homes on the market When searching for an
need to either close the deal or get your deposit back. See a

B
ob Dylan wrote “The Times
local attorney for specifics. They Are A-Changin’” in the
early ‘60s, but the prophet-
Q: Imagine that you add a new roof to your home. ic folk ditty is as timely now as it
was then – especially when it
The roof costs $10,000. Then you sell the home. Are comes to the housing market. Just
you able to deduct the $10,000 from your taxable one year ago, sellers seemed to be
profit? holding the cards and earning
record profits on home sales. Fast
A: In general terms, the cost of your new roof would be forward to late 2006, however,
and the tables have decidedly
regarded as a capital improvement, something that extends turned: Buyers apparently have all
the useful life of the property and increases its value. Once the leverage.The only problem is
you sell the house you would add the cost of the new roof that, in many instances, sellers
don’t seem to have fully realized
this truism, say the experts.
See ASK OUR BROKER, Page 2 “Some sellers have higher
cipal/co-founder of Premier
Realty, Pasadena, Calif.“This adds
to inventory and results in their
homes taking longer to sell.
Because of the surplus in inven-
tory, buyers feel they have more
time to make a decision and are
asking for more concessions.”
This time last year,“a seller
was able to expect a fairly easy
and short time on the market
with a price close to their asking
price, if not over,” says Elena
Thurston, a family real estate
specialist with Keller Williams
Realty Legacy One, Gilbert,Ariz.
“With the current market, sellers
for every buyer, which means a
seller really has to work to make
the sale.They can expect to have
their home on the market four
to six months, rather than
weeks.”
Back in 2005, buyers were
anticipating paying full price and
receiving no assistance with
closing costs, says Sally
Matthews, regional vice presi-
dent for Coldwell Banker
Residential Brokerage, Columbia,
Md. Now, however,“buyers are
expecting to negotiate and get
the home for less. But some sell-
See EXPECTATIONS Page 2
inspector, ask to see a license,
but also his or her identifica-
tion card issued by a reputable
home inspection organization,
such as NACHI or the American
Society of Home Inspectors.
Both organizations require
extensive testing and continu-
ing education to earn and
maintain certification. (Web
sites for each offer a search
function for visitors to find a
certified member by city or ZIP
code.)
In addition, ask about an
See LOANS Page 2

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 CURIOSITY
Make sure the inspector is
home inspectors allow a business relation-
ship or future referrals from realtors to influ-
ence what they say and how they say it,” Del
tant to inspect but also to let buyers know
things like how the sump pump operates and
how to change the furnace filter.”
Ask Our Broker
CONTINUED FROM PAGE 1
working for you, not the realtor Greco says.“If the home inspector in any way
indicates the realtor is the client, run away.”
Ask about drainage around the exterior,
how to keep the basement dryer, how to pro-
CONTINUED FROM PAGE 1 Most importantly, you should feel a level of long the useful life of roofing and siding, how to the “adjusted basis” of the property.A higher adjusted
comfort talking to a prospective inspector – to shut off the water and gas in case of emer- basis will result in a lower profit. For specifics, see IRS
acknowledge that person is going to take the gency, how to configure high and low air
inspector’s background, find out how many time to not only go through house and returns to maximize energy use and keep
Publication 523:“Selling Your Home,” and speak with a tax
inspections he or she’s conducted and inspect it but also explain things to you. bills low, even how to winterize. professional.
request a résumé. The questions continue during the inspec- Keep in mind that a home inspector can’t
“Any inspector worth his salt will be more tion itself, which means it is imperative that see through walls, can’t see mold (barring Q: We traveled overseas this summer and are now
than happy to tell you about his experience,” you actually be physically present to get the any obvious signs) and certainly can’t see thinking of buying property outside the United
says Brian Paull, certified home inspector, full benefit. radon gas.They are likely to miss hidden
Premier Inspection & Consulting,Verona, Inspectors say they receive the most ques- damage from insects, rot and water, and con-
States. Is this hard? Is this possible?
Wis.“I wouldn’t disqualify someone for being tions about water and electricity.Ask if the struction defects unless obvious symptoms
relatively new to inspecting, but I would pre- electrical service is adequate.What makes it show.These are not part of standard home A: The real issue here concerns the matter of where.
fer an inspector have some sort of construc- adequate? Enough amps to handle your inspection. Unlike the United States, in many countries foreign nation-
tion background, rather than someone who major appliances. If you have two major elec- “The one question that I would ask a als (that means you) are not allowed to purchase real estate
used to work in office, wanted change of trical appliances, you need a minimum of 100 home inspector is,‘Do you think I need any-
scenery, passed two tests and got a license. amps, three 125, four 150, says Del Greco. thing else inspected other than general home
on the same basis as citizens.
Seeing how a house is put together and see- What counts as a major appliance? Almost inspections?’” says Gromicko. In Bermuda, as one example, real estate purchases by for-
ing how the systems are put in behind the anything that changes temperatures: a water The only questions off limits are those that eign nationals are restricted to a total of 2,000 acres.The
walls is more important than being able to heater, a clothes dryer, an air conditioner. revolve around personal choice.“Do not idea is to assure that property is available for citizens. Local
answer questions on a test.” And, sure, ask if there is any evidence of bother asking the inspector if you should buy real estate brokers, according to the International Herald
The answer to the next question may water in the basement. But a home inspec- the home, if the home is right for you, if the
seem obvious, but ask the inspector for tion is more than verifying existing systems price is right,” says Del Greco. But almost any-
Tribune, actually have separate listings for citizens and for-
whom they are working.About 70 percent of are functioning and the walls appear sound. thing else not only could be voiced, it should. eigners, and the least expensive property available to out-
home inspectors get virtually all their busi- It is your chance to ask an expert how the “Even if you feel your question is too silly siders this summer was priced at $1.4 million.
ness through real estate agents, says Michael guts of your home work, where important to ask, you should ask it anyway. Chances are In other parts of the world, you may have to buy through
Del Greco, president,Accurate Inspections valves and switches are located and how to someone before you either asked it already a trust, nominee or corporation, or you may need a land
Inc.,West Paterson, N.J.And that sets up a make sure everything continues to function or asked a sillier one.”
potential conflict of interests. at peak levels.
lease that lasts 99 years.Also, the selling, bargaining and
“If a home inspector tells you there’s a “An inspection is partially me evaluating © CTW Features financing process may be entirely different than in the U.S.
problem and that causes you not to buy a the house and the other part educating the No less important, wherever you look, be aware that in
home, the realtor doesn’t get paid. Some buyer on the building,” Paull says.“It’s impor- many countries property ownership is a sensitive topic
often related to complex national histories.There may be
restrictions based on race, nationality and religion. If this
seems weird, remember that such restrictions can still be
found in older deeds in the U.S. – where, at least, such
EXPECTATIONS choose to list their homes, says
Rich Rector, president of Intero
$10,000 to $15,000 below asking
price and end up around $5,000
can still be kind to sellers, thanks
primarily to continued low inter- covenants are no longer enforceable.
Real Estate Services, Scottsdale, less than the asking price, usually est rates,“which will generally
Sellers need to be Ariz. with a contribution from the sell- attract several offers for a seller.
For specifics, contact the commercial counselor with the
appropriate embassy. Get the name of an attorney who can
more selective “Sellers are beginning to
understand that pricing their
er.”
While the present market may
The return to fairly normal
inventory levels should not represent your interests overseas – and be sure you have a
CONTINUED FROM PAGE 1 home correctly is the dif- intimidate sellers. Buyers are still local (U.S.) attorney. Look for a real estate broker who is
ference between selling buying, but only at the right qualified as a Certified International Property Specialist.
ers have not changed their realis-
tic pricing expectations accord-
their property and being
one of the thousands
To get the best deal price. So long as the seller prices
their home appropriately by list-
Q: Who owns a shared driveway?
ing to the market,” she says.
According to Thurston, for
that will not,” Rector
says.
possible, buyers and ing at a fair market value, it’s still
a great time to sell a home,” he
every month a seller does not Buyers, on the other sellers need to rethink says. A: A survey will probably show that the property line
realize his or her home is over- hand,“need to realize Lastly, whether you’re a seller divides the driveway, perhaps not equally, but at least
priced, they lose big money.
Those who “live in denial that
that, sure, prices may
come down even more
their strategy or buyer,“make sure you are
working with an experienced,
enough for the driveway to be located on both properties
their home is truly worth what in X amount of time, but competent realtor who knows
physically.
they think is might never get the I can almost guarantee the inventory and has strong However, owning part of a driveway may be useless and
home sold.Those who price it interest rates will not,”Thurston look gloomy for sellers, experts negotiating skills,” says Rector, impractical.What both parties likely have is a long-time
high so they can come down a says.“Therefore, my advice is to recommend that they keep who predicts that the country “easement by prescription” that “runs with the land” and
little in negotiations will proba- get in while you can.The interest things in proper perspective: will see slightly decreasing home assures access to both owners. Such an easement continues
bly never get an offer to negoti- rate matters way more than the Most sellers also are buyers prices in the months to come.
ate.The house that sells in this price of the house does.” themselves. So while you may “Prices may continue to
when a home is sold, should be fully disclosed when a
market is not only priced well In Thurston’s region, at least, have to accept less than your decline if we are constantly bom- home is marketed and cannot be ended by one party or the
but is prepared and marketed prices haven’t dropped signifi- asking price on a listed home for barded with ‘gloom and doom’ other.
well, too,” she says. cantly, contrary to popular opin- sale, sellers can take advantage of housing reports by the media,”
The shifting in the balance of ion.“But with more homes to greater bargaining power and a Rector says.“However, the mar- © CTW Features
power in home-sale negotiations choose from, buyers can expect lower price tag on the home ket will certainly shift back to a
from sellers to buyers also to get more features for their they will be relocating to. seller’s market eventually.” Need real estate advice? Peter G. Miller, author of “The Common-
should urge sellers to be more money,” she says.“A buyer also Additionally, Roth believes Sense Mortgage,” would love to hear from you. Send your questions
selective about the agent they can expect to start negotiations that the current housing climate © CTW Features to peter@ctwfeatures.com.

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