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MONDAY MORNING MESSENGER

Message Prepared For Members of the American Institute of Inspectors®

February 1, 1999

GOOOOOD MORNING A.I.I.™

It's a great day at Michael Leavitt & Co Home Inspections! I was amazed by the lack of response to last week's MMM. Only one person responded and their response had nothing to do with computerization or E-mailing reports with a PDF file. This either means that nobody read the MMM, or that the information was way beyond what everybody was ready for. All I can hope for is that the 8 hours spent composing the issue will come in handy to all of you at a later date.

This past week brought with it over a foot of snow. It was finally time to bring out the heavy duty snow blower to clear the driveway and walks. Along with the snow comes the one piece jumpsuit, Sorel snow boots, gloves and hat. Inspecting in the snow required a great memory and patience as I tromped through the white stuff. This week promises two more storms so I guess winter is here to stay.

The following is a new section that I have added to the Buyer/Seller portion of my web site. It was inspired by the numerous agents who tell their clients that they think that inspections on new homes are unnecessary. When I first started as an Inspector, I, too, thought that there would never be a market for new home inspections. Boy, was I wrong. I have experienced so many "unfinished" new home inspections that I can now quickly put the thought of foregoing the inspection to rest. I hope that you enjoy this information and use part of it in your next office presentation.

NEW HOME INSPECTIONS

Important information that ALL NEW home buyers should consider:

INTRODUCTION
MUNICIPAL INSPECTIONS - What they don't check out and/or commonly overlook.
CERTIFICATE OF OCCUPANCY - What it really means when a Certificate of Occupancy is issued.
RECENT INSPECTION - The "Punch List" of items from a recent Highland, Utah, NEW Home Inspection.
BUILDER WARRANTIES - Many buyers are under the false impression that builders in Utah are required to provide an unlimited 1-year warranty on the new property. This is not true.
New Home Inspections prevent headaches and hard feelings - An article originally published in the Provo Daily Herald "Inspecting Your Home" newspaper column.
PUNCH LIST - The important addition to the Leavitt Report for new home inspections.
RADON - ALL new homes should be tested!!!

INTRODUCTION - Many buyers of new homes fail to consider having a certified Home Inspector evaluate the home before closing. Afterall, this is commonly thought to be unnecessary because the home is brand new, . Plus, there is usually a 1-year home warranty and assurances have been made by the builder to fix anything they find within that time frame. Here are some items to consider before closing on a new home without having your own independent inspection performed.

MOTIVATED BUILDERS - Buyers are led to believe that any needed work will promptly be performed after they move into the home. Often builders are less motivated to return to the property promptly to complete repairs after they have received their money. Other builders are very prudent about returning to finish off uncompleted work. Which category does your builder fall under???

Builders are highly motivated to complete unfinished "Punch List" items when the buyer refuses to close on the home until the finish work is done.

MUNICIPAL INSPECTIONS - Didn't the Municipal Inspector already inspect the property several times? YES. The municipal Inspectors do perform the various phase and final inspections.

Unrealistic expectations for Municipal Inspectors:

Municipal Inspectors do NOT go over the property in a time consuming detailed manner.
Municipal Inspectors do NOT test every outlet, switch and fixture.
Municipal Inspectors do NOT crawl the finished attic to identify leaks, insulation, or unfinished plumbing vent connections.
Municipal Inspectors do NOT verify the workability of appliances.

CERTIFICATE OF OCCUPANCY - Many buyers assume that because the Certificate of Occupancy has been issued, that everything must be complete. In theory, this is true, but in reality many items are often overlooked.

Municipal Inspectors quite often give Certificates of Occupancy with the following EXTERIOR conditions still present:

Negative perimeter grading.
Unfinished window well grading.
Non-sealed exterior window/wall joints.
Non-sealed brick/stucco/siding joints.
Rooftop plumbing vent pipes still capped off.
Damaged, incomplete and/or shoddy roofing application.

Municipal Inspectors quite often give Certificates of Occupancy with the following INTERIOR conditions still present:

Final appliance hook-ups incomplete.
Gas kitchen appliances installed with electric-only outlets installed in the kitchen.
Door stops, towel bars, and toilet paper holders uninstalled.
Water heater pilot light unlit.
Air conditioning systems yet to be connected and charged with freon.
Doors that do not fit properly in their frames.
Missing finish wood trim.

RECENT INSPECTION - A recent New Home inspection in Highland, Utah, turned up the standard list of unfinished items on the exterior including: negative exterior grading; incomplete exterior sealing around windows, doors and dissimilar exterior surface joints; a large broken window pane in the living room; unfinished window well grading and gravel fill; lack of cosmetic perimeter foundation skim coating; and an 18" x 4" hole above and behind the exterior main electrical panel allowing rain and snow to enter into the open unfinished exterior wall cavity.

The interior evaluation identified the following "Punch List" items: bathtub control valves with the Hot and Cold water being reversed; the master bathroom jetted tub was enclosed without an access panel and the blower unit was left unplugged under the tub (this required cutting through the expensive stone work to reach inside under the tub unit to plug it in; faulty GFCI outlets; unfinished holes in the drywall; numerous areas of needed touch-up painting. The biggest revelation that was identified was that the drywaller had not left any access to the attic. Whether or not there was any insulation installed (doubtful) was unable to be verified during the inspection.

This $350,000 home had already received its "Certificate of Occupancy" and was deemed "Ready To Move In" by the Builder. The buyer was relocating from another state and would be showing up with the moving truck just days after the inspection. Armed with the report, the buyer let the builder know that they would close after the "Punch List" items were completed. In the following days, sub-contractors could be seen scurrying around the home like it was a little beehive.

BUILDER WARRANTIES - Many buyers are under the false impression that builders in Utah are required to provide an unlimited type of 1-year warranty on the new property. This is not true. The State of Utah used to require builders to provide a warranty, but the law was eliminated due to the lack of a way to enforce and regulate it from a State level.

On the other hand, many builders now offer either 1 or 2 year warranties as a form of marketing. What the warranty actually covers varies greatly from builder to builder. The biggest safeguard for buyers is to obtain in writing the builder's warranty and read it very carefully. Look for ambiguities and have them replaced with specific coverages. The biggest ambiguity is the phrase "Quality of workmanship." This is generally used to describe things that the builder will and will not return to take care of. Here are a few things that new home buyers would like resolved at the end of the warranty that many builders like to play off as "Normal" and not their responsibility.

EXTERIOR GRADING - The earth around the perimeter of the foundation that was originally backfilled is prone to continued settling for the first couple of years. The grading is supposed to drop 6" in the first 10 feet away from the home. Many builders fail to backfill and pack the earth sufficiently and within a year there is a literal ponding area along the foundation.
STUCCO CRACKS - Different stucco cures at different rates in different climates and temperatures. In the process of curing, it is quite common for hairline stucco cracks to develop. Just because it is typical does not mean that it is not an issue. Stucco cracks can lead to moisture penetration, especially with wind-driven rain. The stucco subcontractor should agree to return and patch any developing cracks at the end of the warranty period. It is also important to have them come back every 3 to 5 years and perform any further needed touch-ups.
RAIN GUTTERS - It is important that the rain gutter system working as designed. It is important that joints are not leaking and that gutters are positioned so that the water shed from the roof enters the gutter and does not run in behind the gutter. It is also important that areas where gutters butt up against vertical stucco walls are sealed with caulk to prevent the rain water from running between the gutter and wall.
DRYWALL TAPE CRACKS - Homes are constructed with moist lumber that dries out in the first year. This contraction process, along with normal expansion and contraction, will commonly cause drywall tape joint cracks and separations. Although normal and not a sign of major structural failure in most cases, it is still an undesirable condition that breaks a new homeowner's heart as the cracks develop. Touch-up paint and/or latex silicone caulking is used to camouflage this all too common condition. The caulking will expand and contract with the seasonal shifting and generally keep the cracks from reappearing.
DRYWALL NAIL HEAD POPS - The drywall joint compound used to cover securing nail and screw heads will quite often come off and leave a 1/4" round flaw in the painted surface. This is not a reflection of "Poor Workmanship" in most cases, yet it is something that your builder should agree to come back and repair at the end of the warranty period.
SQUEAKY SUBFLOORS - Although not as prevalent in newer homes, squeaky subfloors will occur in the major traffic areas. Most builders now use plenty of construction adhesive to prevent this. Better builders will also use grabber type screws instead of nails to secure the subfloor material to the floor joist. Regardless of the method, it is best to spell out in the warranty that floor squeaks will be repaired.
STICKY DOORS - It is not uncommon for a door that is installed in the summer to swell a bit in the winter and stick slightly in the door frame. The builder should agree to return and block plane and touch-up paint any sticky doors. Once touched-up, the door should fit well throughout the year and not need any further maintenance.
HARD TO HEAT ROOMS - Hard to heat rooms are next to impossible to determine when the home is brand new and vacant. While vacant it is possible to identify heat registers that are not connected to the heating system, but cold rooms are difficult to identify. Heat flows can be felt, but until a family actually moves in it is very difficult to identify and resolve. Sometimes the doors are to low to the carpeting and with the door shut the ability for fresh heat to enter the room is restricted because the cooler air can't leave the room. After living in a home through all four seasons, the new buyer will know which rooms are difficult to heat. It may be that the heating unit is undersized in an attempt to save a little money. What happens when you finish off the basement in that first year and find out that the heater that was supposed to be designed to heat both the main floor and the basement is barely adequate for the main floor alone?
INSUFFICIENT HOT WATER - What happens when the builder assures you that the single 50 gallon water heater will be sufficient to supply the home. Very quickly after moving in you realize that the 50 gallons of hot water will not even fill the master bathroom large jetted tub above the level of the jets and only luke warm water is coming out of the spout. This was a judgment call on the part of the builder and the hot water supply is clearly undersized for average home use.
LOOSELY MOUNTED TOILETS - One of the most damaging conditions found on newer homes are loosely mounted toilet bases. Toilets are mounted to the floor with an inexpensive wax ring installed between the toilet base and the flange plate in the floor. After using the toilet, the base will squish the wax ring down and the securing bolts will become loose. Loosely mounted toilet bases allow waste water to trickle around the ring and into the subfloor with each flushing. Over time, this will damage subfloors, flooring, and even the ceiling on the room directly below the toilet.

Unfinished "Punch List" items can create tension and unneeded conflict if left until after closing to identify. New Home Inspections performed before closing on the home identify all of the loose ends and needed finishing touches. The following is an article from my "Inspecting Your Home" column in the Provo Daily Herald newspaper.

New Home Inspections prevent headaches and hard feelings

Most buyers of brand new homes assume that their new home will be in perfect working order when they move in. Friends and even some real estate agents often tell buyers that an inspection on a new home is a waste of money. The city inspector has already inspected the property. Right? And besides, the home is brand new.

Ask anyone who has purchased a brand new home and they will usually tell you that the list of needed finishing work is longer than a little kid's Christmas list. A home inspection performed by an independent Certified Home Inspector will protect the buyer by bringing to light the complete punch list before closing. Builders use the term "punch list" as the name for the list of items that still need to be completed on the home after the walkthrough.

The building boom that has been occurring in Northern Utah has kept the tradesmen extremely busy. Many of the small finishing touches are easily overlooked. If the closing on the home is already completed, it is difficult to get the tradesman back out to your home to finish the job. However, if you are not willing to close until the work is done, the motivation is much higher. Pressure from the real estate agent and general contractor to get the work completed is great.

Buyers want to be assured that all of the systems are working before they move in. Many people mistakenly assume that the city building inspector is going to go over every detail of their new home with a fine tooth comb. That is simply not their job. City building officials make sure that current building standards are met during the construction process. They are not responsible for putting the new dishwasher through a wash cycle or verifying that all of the roofing shingles are in place after a recent windstorm.

Independent Certified Home Inspectors are hired to evaluate all of the home's systems and make sure they are in working order. For instance, it is quite common to find that the electrician has not made the final hook-ups to the dishwasher and disposal. Finish carpenters often forget to put on small hidden pieces of trim. Window installers sometimes fail to be notified to return to the property and install the screens. Home inspectors bring these items to light so that final work can be completed before you close.

On a recent new home inspection, the buyer was glad he listened to his real estate agent. The agent was working hard to make the transaction flow as smooth as possible. She recommended that the buyer have a home inspection performed and, because the home was constructed on a hillside lot, she also recommended an evaluation by a Structural Engineer.

Both evaluations were scheduled. Later, the lender told him these inspections would be a waste of money. The lender said it was a brand new home and the city inspectors were very strict, so the buyer canceled the inspections. After a night of uneasiness (and at his real estate agent's continued urging), the buyer rescheduled both evaluations.

The Structural Engineer identified the need for a retaining wall as well as making other valuable suggestions regarding water drainage.

The home inspection turned up many conditions that even the builder was unaware of. While evaluating the roof, I noticed that the roofing drip edge installers had improperly cut the trim and forced the metal to tear around the corners which exposed the wood. Roofing shingles had blown off in a recent windstorm and plumbing vent pipes were still capped off on the roof.

The electrical connection for the kitchen disposal was not yet completed and I noticed that water was backing up in the downstairs floor drain. After further investigation, it was discovered that the final main sewer connection had not yet been made.

The home inspection report brought peace of mind to the buyers and they were happy that the normal "after move-in surprises" were removed by the inspection report findings. The punch list items were immediately scheduled to be finished by the builder before the home's closing.

The builder also thanked me for the inspection report. This builder cared about quality of workmanship and his reputation. The findings would be discussed in their next weekly meeting with the subcontractors to keep these same conditions from happening again.

It should also be noted that new home buyers no longer have a state mandated warranty period in which to have defects in their home corrected. Most builders have found it in their best interest to offer warranties as a selling point regardless. Typically, the new home warranty period will be 1 year, but buyers must be certain to have the details of the warranty clearly in writing. After being notified of the defect, the builder needs to make the repair in a timely manner, and "timely manner" should also be clearly defined in the warranty.

If your new neighbors used the same builder, ask your neighbors how quickly the builder came out to fix any of their problems. If they say he was quick to come out and fix any needed items, you might consider closing before the repairs are completed. If they tell you otherwise, don't close until the punch list items are completed.

If you are going to purchase a brand new home, whether it be through a developer or your own project, you should seriously consider taking advantage of the benefits of a home inspection before you move in. If you are already in your new dream home, be sure to have it inspected before the warranty period expires.

(Michael Leavitt is certified by the American Institute of Inspectors. He is the owner of Michael Leavitt & Co Home Inspections and serves all of Utah County and beyond. Column suggestions or inspection questions are welcomed by calling his office at 225-8020 or by visiting him online at www.TheHomeInspector.com)

PUNCH LIST

An important addition to the Leavitt Report for New homes is the PUNCH LIST. This is an additional document that summarizes the items contained within the lengthy Leavitt Report that either need to be repaired or completed before closing on the home. The PUNCH LIST is then shared with the builder to be used as an additional "Items To Be Completed Before The Buyer Will Pay Me" list.

You are encourage to click on this link to download a sample Leavitt Report.

You are also encouraged to click on this link to download a sample Leavitt Report PUNCH LIST.

RADON - What is it???

RADON is a cancer-causing, radioactive gas. You cannot see radon. And you cannot smell it or taste it. But it may be an issue in your home. That is because when you breath air containing RADON, you increase your risk of getting lung cancer. In fact, the Surgeon General has warned that radon is the second leading cause of lung cancer in the United States today.

NEW HOME TESTING - Put the responsibility of acceptable RADON levels in your new home upon the Builder's shoulders. It is recommended that you have the NEW Home tested and if the 48-hour test does not average below the 4 pCi/l level, require your Builder to have the proper mitigation performed.

MITIGATION - Any home's RADON level can be reduced below the 4 pCi/l level. Just because a home has elevated RADON levels does not mean the home is plagued or doomed, but there will be an expense incurred to mitigate. Mitigation will generally run $1,200 to $2,500 on an average-sized home. Mitigation can only be performed by trained and approved EPA Mitigators.

BUILDER'S RESPONSIBILITY - Most Builder's in Northern Utah are unaware of the risk of RADON in the area. Most Builder's have no specific training or current information on the topic. If they did, they would take the inexpensive precautions to rough-wire and rough-plumb the home for any needed RADON mitigation. This would greatly reduce mitigation expenses if the home's RADON results were later found to be elevated.

There is no logical reason why a NEW home with elevated RADON should be the Buyer's responsibility to lower the unhealthy RADON levels. Utah, however is a "Buyer Beware State" and once the home is purchased, it is difficult to hold anybody else responsible. If elevated RADON levels are discovered before a Buyer closes on their NEW Home they can require the builder to resolve the condition.

If you are planning to buy a New Home, don't forego the important RADON TEST!!! Add the contingency clause to your Real Estate Purchase Contract that the sale of the home is contingent upon the home having RADON levels averaging under 4 pCi/l.

FOR MORE RADON INFO CLICK HERE

MARKETING TIP

Last week's MMM Marketing tip revolved around the idea of a huge logo on the back of a jacket. Only one person responded back. But with a response like this.... Who needs more???