The Inspection Results Are In

I would like to make something perfectly clear up front: in no way did I expect this house to be perfect. 1) It is a foreclosed property. 2) It is on the market below market value. Scratch that, it's below what seems to be the market value. Given the volatile nature of our economy, who knows what the real value of a house is. Either way, barring any major structural or internal problems, I'm happy.

With that in mind, this past Friday a home inspector came by to look through the house. This was strictly a home inspection for the benefit of Laura and I. He made that very clear up front. The gist is, I follow him (and his son) around the house as they test or evaluate every aspect of the house. I ask him questions as we go along and he does his best to construct an answer that will make sense to the layperson. At the end, he provides me a detailed report on the house including any issues (both minor and major) to keep my eye on. That's how it's supposed to work. The reality is, I spent the first half hour of the inspection having my realtor explain property tax modification to me (another process that I didn't quite understand) and the second half hour being talked 'at' because I had no significant questions. For me, it was more or a less a tutorial on the make-up of a house. The answer: brick and wood. Who knew?

Overall, the inspection went well and Ed the Inspector was incredibly helpful. The problems he identified include (from most to least expensive): 1) cracked window, 2) rusting deck that is ugly to boot, 3) a closet door off its hinges, 4) a few shingles have fallen off the peaked roof, 5) some door knobs are loose, 6) protective covers on one outlet and one light switch are cracked, 7) the carpet in the basement needs to be replaced (already knew), 8) the basement smells, 9) I'm ugly. Basically, all of the problems were minor.

Due to complications arising from an unpaid water bill (The last owner prior to foreclosure had a $219 balance left unpaid. As water follows the house, the water couldn't be turned on until the bill was paid. I went ahead and paid the bill with the understanding that I would be reimbursed by Bank of America at settlement) Ed came back to the house yesterday to finish up the inspection. I haven't yet received an updated report but did talk with Chris the Realtor last night. I'm not sure if he left anything out, but water/sink/tub/washer dryer problems include: 1) minor leak from one of the pipes at the water main valve (sounds like a $200-$300 repair), 2) garbage disposal in the basement is seized (not sure if this can be repaired or must be replaced), 3) garbage disposal upstairs is slightly clogged but works, 4) toilet on the second floor is clogged and pipes may need to be flushed (minor expense?). Everything else worked fine, or so it sounds. These problems were larger than what we found during the Friday inspection, but none of them are deal breakers.

All in all, repairing the house after settlement will mean small checks here and there but all of these costs can add up quickly. The good news: 20% of the commission that Chris the Realtor receives will go towards my closing costs. I believe this comes to around $1900 and should cover all of these minor repairs (and then some). Or else the repairs cost much more than I anticipate and I sell every square inch of the house like stock.