Home Purchase Due Diligence

Due Diligence: Is it only for big corporate acquisitions? | Home Inspections Colts Neck NJ

 

Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.

It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition.[1] The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate on the decision at hand and all its costs, benefits, and risks.”   Due diligence – Wikipedia

 

Like any purchase of significance due diligence is important and you probably don’t realize it but you already do it to a much, much simpler degree. Do you compare performance information and mileage for a new vehicle you may be considering buying?  That’s due diligence.  Do you compare school districts or the time to commute to and from work for the new home you’re thinking of buying?  That’ due diligence. And of course, the purpose of this piece is to make sure that you recognize that a home inspection is a critical aspect of your home purchase due diligence.

By law, the home inspection is a non-destructive inspection of various systems and components of the home. Exterior, roof, electrical elements, baths, etc. We at Regal Home Inspections, LLC, of course, follow the law to the letter of the law and we strive to surpass the bare minimum as required. For example, the law requires we check 1 outlet per room and one window per room.  If accessible, we usually check as many as we can, not the minimum. The purpose of this piece however it not to review the home inspection due diligence that Regal Home Inspections, LLC does but what you may want to consider (Or we may recommend) beyond the scope of the NJ home inspection standards of practice.  To that point, I am also licensed by the NJ DEP (License # 59628B) to inspect for wood destroying insects and prepare the industry recognized, “Termite Report”.  Both my son & business associate and I are also licensed to conduct radon measurements (NJ DEP Radon Measurement Technicians) MET14070 and MET13186 respectively.

You may not realize it but you’re already paying for elements that fall under due diligence. The title search that you’re doing.  The appraisal that the mortgage company may require.  The appraisal is more due diligence for the lender than it is for you, the buyer.  While I’m talking about the lender, when they verify your income and credit rating, that’s part of the business due diligence of them making the loan to you.

There are things beyond those that we do as home inspectors (Inspection, termite and radon) that we sometimes recommend and sometimes urge you get as part of your home purchase due diligence. As of now we don’t do them but we can refer you to good companies that do.

  • An oil tank sweep. Oil tanks were common for many years. Going back decades, natural gas was not as prevalent as it is today.  In the past, houses may have been heated with electric or oil if natural gas wasn’t available. There are many houses still heated with electricity and there are still some with oil.  However, it’s the ones that no longer have oil but did that we’re concerned with. What do the sellers know and is it accurate?  Years ago it was OK to have an old oil tank cleaned and abandoned in place. However, as I’ve heard, insurance companies will charge a higher premium if the property has an abandoned oil tank. If the property you’re considering buying as an old tank decommissioned and left in the ground, INSIST, that it be removed by the seller. You absolutely do not want to purchase the risk and liability of an underground oil tank. An oil tank sweep is relatively inexpensive and worth every penny. Usually the cost is between $275 and $450 depending on the size of the property.
certified home inspections colts neck nj
The same oil lines near the water meter and water pipes.
certified home inspections monmouth county nj
Old oil lines in the basement.

 

 

 

 

 

 

 

  • Sewer scope analysis. Information suggests that up to 80% of the waste pipes from the house to the sewer connection have some type of issue. It could be roots that have grown into the waste pipe. Bellies where there’s a dip in the pipe that can collect waste and hinder good drainage. Breaks in the pipe, cracks or holes. Often, a family of 4 or 5 is buying a house from an original owner where one person has been living in the home for years. Years earlier there was a family but as the children grew up and moved out, eventually, like me and my wife, there are two people living in the home.  The water use for an older couple or a single, older occupant is very, very different than for a family of 3, 4 5 or more. The waste pipe from the house may be able to handle the one or two loads of laundry a week and a few showers a week for the older occupants but when the young family moves in and there are multiple showers and baths a day and multiple loads of laundry a day, etc. The corroded waste pipe is no longer able to handle the waste water volume of the young family as it could for the older couple. A video, sewer scope analysis of the sewer pipe is worth it’s weight in gold.

Financially, for both the oil tank and sewer scope, you’re talking about $300 for each to be sure vs. many thousands of dollars to repair.  Is it 10 to 1?  $300 vs. $3000?  No, it could be more like 30 to 1 or 50 to 1.  That’s $9000 to repair or $15,000 to repair and quite possibly more.

 

In conclusion, think of your home purchase as a business acquisition and your duty is to perform all of the reasonable due diligence needed. The home inspection is #1. DO NOT WAIVE YOUR HOME INSPECTION!  #2 Think about some other, important services: Radon test, termite inspection, oil tank sweep, sewer scope analysis, lead paint, mold and pools.  Anything that’s important to you should be part of your home purchase due diligence.

 

Other Services | Certified Home Inspector Monmouth County NJ

Regal Home Inspections, LLC is thermal imaging certified and offers Monmouth County NJ certified home inspections, condo inspections, estate inspections, and townhouse inspections.

It’s likely your mortgage company will require a wood-destroying insect inspection. Regal Home Inspections has the NJ DEP Core & 7B Pesticide Applicator license, so we can offer professional termite and wood-destroying insect inspections as well!

Call 908-902-2590 for your free quote or if you have any questions!

 

Do Not Waive Your Home Inspection. Part 1.

Electrical Issues…A Great Reason NOT to Waive your right for a home inspection.

July 27, 2021

We’re in the COVID Era.  Many people are in a panic, including, for the first time, panicking about where they live.  My wife and I came to New Jersey, from Staten Island, NY in 1987.  We, like many New Yorkers, sought a better life and standard of living for our young and expanding family.  And, without a shadow of a doubt, we achieved a better life in the Garden State.

As a licensed home inspector in Monmouth County, NJ I’ve done many inspections for people moving to NJ for a better life.  NJ’s beaches and rural, suburban areas were a welcome change and attraction for people moving from Staten Island, Brooklyn and occasionally Queens. At one time the cost of living in NJ was an attraction too but unfortunately that may no longer be the case but that’s not important when compared to the other, quality of life issues.

Covid has been the catalyst for change in many, many ways. As it relates to the real estate business, Covid is pushing people to NJ. To some degree people are still coming to NJ for a better quality of life but 2020 has given New Yorkers other reasons to flee the Empire State and the Big Apple; Congestion, crime, unbridled riots the summer of 2020 and more. To some degree the real estate industry in NJ has benefited. I heard that Connecticut is also a welcome alternative to New York.

This all means that the competition for buyers is tough. Many buyers and too little inventory.  Supply and demand. What gives? Bid prices go up and sellers put stipulations that only structural or environmental inspection will be permitted. What? For buyers that’s a bad proposition.  You could be buying a money pit or a safety hazard.

Here are some examples of egregious electrical issues recently found that you would have no knowledge of if you gave up your right for a FULL inspection.  One area that a run of the mill DIY homeowner must never do is electrical work!  It could kill if not done properly, start a fire and worse. The examples shown are, in my opinion, so bad that there’s no way they were done by a licensed electrician or an apprentice working under the guidance of a licensed electrician. Items 1 and 2 are from one house inspected the week of July 19, 2021. Items 3 and 4 are from a house inspected the week of July 12, 2021.

  • A sub panel that’s mis-wired.  Neutrals and grounds are together on 2 different bars.  One set, on the top right is wrong because the bar is, by design, electrically isolated from the metal box (Also part of the electrical ground). So the ground wires are not really grounded.  “No big deal” you say?  Wrong, it is a big deal. If one of the hot wires short circuits it will want to go to the ground wire and to an earth ground. But due to the way it’s wired, there is no metallic path to an earth ground. The electricity from the short circuit will energize all of the other wires in the house and potentially electrocute someone or start a fire.
  • The same panel’s ground bar (Bottom left) also has neutrals wired to it. The grounds are grounded but so are the neutrals.
  • certified home inspector monmouth county nj
    Improperly wired sub panel.
    home inspector monmouth county nj
    Grounds and neutrals on the same bar. The problem is that it’s not grounded.

    home inspector colts neck nj
    Neutrals are also part of the ground.
  • At another house there’s a 20amp circuit breaker with a 14 gauge wire. That’s definitely a safety issue. If you don’t believe me try Googling, “Can a 14 gauge wire be connected to a 20amp circuit breaker?”  The 1st response is, “You can not use 14 AWG anywhere on a circuit that has a 20A breaker.”  For me it’s case closed.
  • At Regal Home Inspections, LLC we use combustible gas detectors and check the natural gas valves and couplings around the water heater, furnace or boiler and dryer when accessible. Yes, we found a gas leak. Do you want to move into a house with a gas leak? Of course that’s rhetorical question, of course you don’t. But if you give up your right to an inspection, that’s what you may end up doing!
  • home inspections monmouth county nj
    Gas leak detected.

Don’t give up your right to a full home inspection.  If you plan on renovating the bathrooms and kitchen, fine, exclude them from your inspection and maybe the seller will be OK with that.  But do not give away your right to identify Material Defects that effect the safety or habitability of the house.

 

Other Services | Home Inspections Monmouth County NJ

Regal Home Inspections, LLC is thermal imaging certified and offers Monmouth County NJ certified home inspections, condo inspections, estate inspections, and townhouse inspections.

It’s likely your mortgage company will require a wood-destroying insect inspection. Regal Home Inspections has the NJ DEP Core & 7B Pesticide Applicator license, so we can offer professional termite and wood-destroying insect inspections as well!

Call 908-902-2590 for your free quote or if you have any questions!

 

A Superior Effort and Inspection – Part 2

A Superior Effort Part 2

By Frank J. Delle Donne, Licensed Home Inspector

January 10, 2015

For most people, purchasing a house is the largest purchase they have thus far made. Help ensure that you, “Buy with confidence. Sell with pride” ® by using Regal Home Inspections, LLC.

Introduction

On Friday, January 9, 2015 I was hired to conduct an inspection on a nicely renovated 52 year old house. It had been remodeled with updated bathrooms, new siding and despite its age, looked very nice and it absolutely was for the most part. Like the Superior Effort article I wrote in December 2014, I was informed that the house had also been recently inspected. The seller told me that the house had been inspected in the summer of 2014 by another potential buyer. That deal, I was told, fell through because of septic issues but the seller had the septic system replaced following that deal’s demise. I was also told by the seller that the, “only other thing” the other inspector found was an issue with the chimney flashing which they had fixed.

Just like I said in the December 20 edition of the Superior Effort article, perhaps another inspector would have cruised the rest of the way home on this second inspection but I did not. Following are some examples as to why, in my humble opinion, you should hire Regal Home Inspections, LLC to perform your new home inspection.

Examples

Here are some of the items that I found during the inspection that the, “other” inspector should have found.

1) The New Jersey law that oversees home inspectors requires that home inspectors test the, “Entrapment Protection Mechanism” for garage doors. This includes the photo-eye beams mounted close to the floor on the garage door tracks and the auto reverse in the event something gets caught under the door as it’s closing. One garage door had the photo-eye but the other did not. Additionally the doors required adjusting on the down-force-tension because they did not reverse when tested. Starting in 1993, garage door openers had to come with these safety features. It should be reported if they aren’t installed or operating in a home inspection report.

2) New Jersey Home Inspection laws follow the Standards of Practice of the American Society of Home Inspectors (ASHI). ASHI is actually mentioned in the NJ Administrative Code that oversees home inspectors and how they should perform their job. The Standard of Practice allows inspectors to inspect a sampling of regular electric outlets but the inspector must inspect all Ground Fault Circuit Interrupt (GFCI) outlets. GFCI outlets help protect people by disconnecting the electricity if the GFCI outlet detects that the electricity is going-to-ground in a manner that is abnormal. This might occur if stray voltage and current went through a person because of faulty wiring. That’s why GFCI outlets are required outside, in garages and near all water appliances; sinks, etc. to name a few. GFCI outlets are basics in 2015 construction just like a foundation and roof.  GFCI outlets in specific areas are mandatory. So when a house is being inspected for a sale, the inspector HAS TO CHECK EVERY GFCI outlet and every outlet that should be GFCI. Without getting too technical, suffice it to say that one GFCI outlet can protect the others that it serves in a multi-outlet circuit. In this photo, the GFCI outlet on the right (the one with the buttons), operates as it should.

DSCF3587
Outlet on right is GFCI. Outlet on left is NOT GFCI protected PLUS it has reverse polarity.

However, not only is the outlet next to it NOT GFCI, it is wired backward! The polarity is reversed. Again, without getting too technical, this is very dangerous. An outlet that is wired with reversed polarity has the potential to electrocute someone very easily because the “Hot” line is in the wrong place.

3) Another blatant error on the part of the inspector that was here 6 months back is the duct for the bathroom exhaust fan. Inspectors are trained to be aware of bathroom exhaust fans that are not installed with the duct work to the outside. They sometimes vent to inside the attic (see the @regalhomeinspec Inspection find of the week from late December with the vent fan with no ductwork). While they are often very hard to find because the fans and ducts are often under insulation or in hard to reach places, in the house yesterday, it was very easy to see and right in front of you, if you looked and cared to know what you were looking at.

DSCF3637
Silver duct from bathroom fan is blowing moist exhaust air into the attic. This can promote mold growth.

Conclusion

The bottom line is that I will do the best inspection possible. Combine that with my competitive pricing and I believe I offer the best professional home inspection value in New Jersey. For a house that was “inspected” by another licensed home inspector within the past 6 or 7 months, I found items that should have been found previously.

I would appreciate your comments about this article. Please email your comments to frank07722@gmail.com

About the author. I am a NJ Licensed Home Inspector. I am the owner and Inspector at Regal Home Inspections, LLC. In addition to being a New Jersey Licensed Home Inspector I am also a NJ-DEP certified Radon Measurement Technician and Regal Home Inspections, LLC has also collected samples for lead paint, allergens and mold. We are affiliated with the best labs that perform the sample evaluation and testing. We can also help facilitate the testing of septic system and numerous aspects of oil tank evaluations. This includes oil tank integrity testing, tank locate services and soil samples. We work to ensure that the house you’re buying is sound or that you know of any issues.

 

Electrical Issues – Findings of a Home Inspector

Electrical Issues – Part 4

Findings of a Home Inspector – Electrical (aka Circuit Breaker) Panels

By Frank J. Delle Donne, Licensed Home Inspector

August 1, 2014

For most people, purchasing a house is the largest purchase they have thus far made. Help ensure that you, “Buy with confidence. Sell with pride” ® by using Regal Home Inspections, LLC.

Please leave a review of this article or of our services.   Click Here and then click on, “Write a Review”.

Never perform electrical work yourself unless you are a licensed electrician. Nothing in this article suggests that you should attempt to diagnose any electrical problems you may have or make any repairs yourself. Any attempt to make electrical repairs or upgrades can lead to your death. ALWAYS hire a licensed electrician to perform any electrical work. Electricity kills. Never remove the cover to your circuit breaker panel.  

If you’d like a visual inspection of your home’s electrical system because you think there might be problems with it, please call Regal Home Inspections, LLC and we can perform a limited, visual electrical inspection of your system in accordance with the New Jersey Home Inspection laws and ASHI & NACHI Standards of Practice.

This is not a “to code” inspection. Our inspection DOES NOT guarantee conformance to local electrical codes.

Introduction & Disclaimer

I would predict that 90% or more of the homes that I have inspected have had some sort of electrical system issue. Because of the fact that electricity is very dangerous if not handled by professionals most of the time an electrical issue is determined to be a Material Defect (aka Major Defect) because it is a SAFETY issue. Being classified as a Major Defect in a home inspection report usually means that some corrective action should be taken by the seller prior to closing or that monies have been set aside (escrow) so that the buyer can address the problem after closing occurs. It is very important that if the later of these two situations exist that the buyer use the money for the intended electrical repairs. As defined by NJ State Law, a Material Defect is a condition of the structure or of a System or Component that substantially affects the habitability, value or safety. Since electricity can kill, and often does, electrical issues almost always rise to the level of a major SAFETY issue.

This article looks at some all-too-common issues with circuit breaker panels. While some panel issues may have been mentioned in Parts 1, 2 or 3, these examples were from inspections that were done in June and July 2014. The areas that I’ll cover today include the circuit breaker panel location and the issue of double taps. I will also point out an example of a bad situation in which there wasn’t any panel cover at all.

General Panel Observations

Circuit breaker panels (referred to as, “panel”) should be accessible from the front. Technically, if there isn’t 3 feet of clearance in front of a panel, by rights, a licensed home inspector may not even try to inspect it. If you are buying a home, it’s worth a call and ask the seller to ensure that the panel is accessible. Below is an example of a panel that was tucked behind a refrigerator/freezer in a utility room. Luckily I was also performing a radon test which required that I return in a couple of days. The buyer was able to ask the seller to move the refrigerator so I could get access to it when I returned for the radon. It was a slight delay in completing the report but it had to be done.

DSCF1766
Missing Panel Cover

Some panels are too readily available. This panel’s cover was no where to be found. I cannot emphasize enough the potential of death (that’s not too extreme of a scenario) when the panel cover is not there. Would you ever climb a ladder and grab the electrical wires from the pole to your home? Of course not. But when the panel cover is missing it is practically the same shock/electrocution/death potential inside your home. Imagine you trip and reach out to stop your fall and your hand goes into the panel? Imagine you are sweeping or mopping the floor and you are using a metal pole mop or broom and you accidentally turn and the handle of the mop touches the inside of the panel box. It can be a death causing event. That’s why panel covers are REQUIRED!!!

Also, under the heading of general panel observations, if you are selling a home, make sure the legend in the panel box is complete and accurate. Don’t sell a house that doesn’t have the proper “operator instructions”. An incomplete or non existent legend should be pointed out in a home inspection report. Some may think it’s minor (and it’s not necessarily a Material/Major Defect) but it should be complete and accurate.

Location, Location, Location

As mentioned earlier, a panel should have adequate space in front of it for access. Ideally 3 feet to allow an inspector to open the door, remove the screws, lift off the panel cover and inspect the internal wiring and condition. Additionally, the top of the panel should not be too high. Ideally the main disconnect should not be higher than 6 feet. This will ensure the probability that even someone that is not too tall can reach up and turn off the main-breaker in the event of an emergency.

Panels should also not be located in closets. Below are 2 examples of panels situated in clothes closets. There have been others. One is of particular concern. The shelf in the closet prevents the panel door from opening completely not to mention the fact that the panel shelf is right up against the panel cover. I was able to remove it but I think most inspectors would record the condition as a “Limitation” to the inspection process and not inspect further. This is perfectly appropriate if invoked but I wouldn’t let that stop me from doing the best job for the client.

DSCF8563
Panel in Closet.
DSCF0051
Panel in closet has access hampered by shelving.

A Particularly Hazardous Condition

In a previous article I wrote about “Double Taps”. As stated then, a double tap is when someone incorrectly tries to connect two wires to the circuit breaker lug and is of concern because most circuit breakers are designed to hold only 1 wire. When 2 wires are installed into a single lug there is a potential that the wires are of differing gauges (sizes and therefore wire diameters). The larger one may be tight but the smaller will have a poor, possibly high resistance connection and that, as we know, can generate heat or arcing and be a fire hazard.

DSCF1769
Double Tap in Main Breaker. Very Bad!!!

This, however is a particularly hazardous situation (photo above). Someone double-tapped into the main feed and the main circuit breaker.  The other end of the wire is connected to a breaker below, back-feeding power to the panel with no main breaker protection.

With this condition, it is impossible to actually disconnect power from one half of the panel. In the series of photos that follows, notice that there are two wires into the main breaker. One comes from the electric meter and is the live feed. There is a double tap into the same main breaker lug and as a result, the second line is ALWAYS energized. It then goes to another breaker in the panel. To tell you the truth, I cannot figure out what the purpose of this is but this is exactly how I found the panel when it was inspected.

Conclusion

I continue to share some of the more dangerous and interesting findings that I come across as a home inspector. I invite you to use this and the other posts as learning aids and that they help you learn mre about the home’s systems. Remember, electricity can kill. Do not attempt to fix any electrical problems you may notice. Call a licensed electrician.

I would appreciate your comments about this article. Please email your comments to frank07722@gmail.com

About the author. I am a NJ Licensed Home Inspector. I am the owner and Inspector at Regal Home Inspections, LLC. In addition to being a New Jersey Licensed Home Inspector I am also a NJ-DEP certified Radon Measurement Technician and Regal Home Inspections, LLC has also collected samples for lead paint, allergens and mold. We are affiliated with the state’s best labs that perform the sample evaluation and testing. We can also help facilitate the testing of septic system and numerous aspects of oil tank evaluations. This includes oil tank integrity testing, tank locate services and soil samples. We work to ensure that the house you’re buying is sound or that you know of any issues.

 

 

Maintain Your Home. Findings of a Home Inspector.

Maintaining Your Home

Help the Sale Go Smoothly

Findings of a Home Inspector

By Frank J. Delle Donne, Licensed Home Inspector

June 17, 2014

For most people, purchasing a house is the largest purchase they have thus far made. Help ensure that you, “Buy with confidence. Sell with pride” ® by using Regal Home Inspections, LLC.

Please leave a review of this article or of our services.   Click Here and then click on, “Write a Review”.

Reading this article will not guarantee that you will sell your home. It offers observations of issues found in homes both new and old. However, older homes usually contain more issues.

If you are planning to sell your home and would like to have a Seller’s Inspection conducted please call Regal Home Inspections, LLC. We can perform a thorough inspection and make recommendations that should help any buyer feel more comfortable in making an offer.   We can perform a New Jersey Administrative Code (NJAC) compliant home inspection. We can conduct a radon test and have your house professionally inspected for termites and Wood Destroying Insects and Wood Destroying Organisms (WDI/WDO). We can also conduct pool inspections. If issues are found we can help facilitate additional levels of expertise. All in an attempt so that your home, a small cape cod or a country estate, will be better prepared for the eventual buyer’s inspection and closing!

Introduction

I have inspected homes of various ages, sizes and in different geographies; Bergen County to Ocean County. Some have been urban and some suburban. From 1200 square feet to approximately 8000 square feet. From 1 furnace and no air conditioners to a single home with four furnaces and 5 air conditioners.

Regardless of the age, size, price or location there have been inspection related issues found with nearly every inspection I have performed. In this article I will share some examples because they are probably not the type that the seller has ever considered. Some are easy to prepare for. Some not as easy and you should be prepared. It’s when the seller is unprepared and the item is deemed to be significant* that there’s potential for contention. * Significant is subjective when it comes to the buyer. Items of note should not be subjective for the inspector but one never knows how the buyer will judge an issue. Some examples are in the article.

Brief Review

The NJAC has many requirements of an inspector. However, when it comes to the actual inspection and the reporting there are a few key points. The NJAC follows the Standards of Practice of the American Society of Home Inspectors (ASHI). When it comes to the inspection, the inspector is required by law to DESCRIBE specific systems and components of the house; Plumbing, electrical, exterior, etc. The inspector is required to IDENTIFY any Material (aka Major) Defects; Findings that effect the habitability, safety or value of the home (in very simplified terms here). And the inspector is required to PREPARE a written report memorializing the previously mentioned elements.

What the inspector is not doing is determining if the curtains match the rug. If the choice of siding materials matches or clashes with the general theme of the other houses. We are looking for very specific things that are not otherwise apparent to the buyer or the seller and for this reason, it’s a very good idea for the seller to be as prepared as best as possible. You painted the walls so they look fresh, right? You had the grass fertilized and the bushes trimmed so the yard has curb appeal, right? Maybe you’ve even put some chocolate chip cookies in the oven to make the house smell good for that open house?

But did you think about:

  1. Having your furnace or air conditioner serviced?
  2. Checking to make sure your electrical system was up to date?
  3. Did you check to make sure there aren’t any leaks under any of your sinks?
  4. Did you check to make sure your dryer vent is clean and relatively lint free?

The inspector will go even further. Let’s look at some examples.

  1. How old is your garage door and garage door opener? Since 1993 garage doors have to have entrapment protection mechanisms. In fact the NJAC REQUIRES that they inspector check for functioning garage door entrapment protection mechanisms.   Furthermore, if they are not functioning properly, this is classified as a SAFETY issue (remember the Material Defect definition in the NJAC? I paraphrased above but SAFETY issues are included).
  2. Do you know what the difference between a guardrail and a handrail on a set of steps? The inspector better and if there isn’t either where they should be that too is a SAFETY issue. On a related note, do you know how far apart the spindles of a guardrail should be? If they are too far apart this is a SAFETY issue.
  3. While we’re on the general subject of steps and stairs, do you know how high a step’s riser (the vertical part) can be? How about the minimum depth for the tread (the part where your foot goes) before it too is a SAFETY issue?
  4. Your water heater and air conditioner are working fine, right? As a home inspector part of our inspection process is to determine how old some of the major appliances are. When I mention, “Major appliance” I am referring to water heaters, furnaces and central air conditioners, not microwaves as an example. If you, as the seller, don’t have receipts or records of when the water heater, furnace or air conditioner was purchased, the inspector can almost always determine the manufacture date from the serial number. Different manufacturers code the date differently but it’s almost always there. Sometimes the year is coded to a letter or the year is abbreviated; “0803” for manufacture the 8th week if 2003 or C99 where the “C”, 3rd letter in the alphabet corresponds to March and the “99” is 1999. What’s my point? If the water heater, AC or furnace is too old it may be flagged as a Material (aka Major) Defect. It’s not subjective but it’s objective. If a water heater is 20 years old, it is well past its typical useful life and every day that it continues to work is a gift. The buyer is being told by the inspector that they should have no (zip, zero, nada) expectation that the 20 year old water heater will work another day and therefore, the “value” of that NJAC required system or component is practically $0 but there is an expectation that the house’s price includes a working, functioning and reasonably reliable water heater. The seller thinks it is but the inspector will use the facts to determine that it is not.

Here are a couple that aren’t as obvious.

  1. For a single family home or townhome, there is often an attic. A space above the regular living area but below the surface of the roof. The science behind most attic designs is that the air inside the attic should be the same temperature as the outside temperature. In the summer it’s tough to keep the attic at 90 degrees on a day when it’s 90 degrees and sunny out but in the winter, when it’s 5 degrees outside, the attic science says that the air temperature in the attic should also be 5 degrees. Why? Well, if the air in the attic is 50 degrees when it’s 5 degrees outside, where might that heat source be coming from? Some may be the sun load but most is probably heat leaking from inside the house’s living space into the unheated attic. Do you pay to heat your attic when there’s no one living or sleeping there? I don’t. Secondly, when the roof is snow covered, if it gets too warm inside the attic the snow on the roof will melt and the water will freeze. The water will make its way up under the roof shingles and then freeze. Constant freeze thaw cycles will shorten the life of your roof surface. I just had my roof replaced at my home. The manufacturer’s warranty states that the warranty does not cover damage due to, “Inadequate ventilation”. Inadequate ventilation will cause the roof surface and the sheathing (plywood) below to get way too hot in summer and the freeze damage mentioned in winter. Proper ventilation helps in all seasons.
  2. I’ve had this come up twice in the last few weeks. A situation that I don’t believe any homeowner would notice but one that will be identified as a SAFETY issue on an inspection report. Many homes have had old oil furnaces replaced with newer gas furnaces. Perhaps the water heater too. I came across this situation this week. A couple of weeks ago I saw an old wood burning fireplace converted to a gas fireplace. The old designs for both these houses had oil or wood appliances and properly designed and sized flue pipes were originally built. The clay flue pipes inside the chimneys were built to a height that allowed the hot (oil or wood) exhaust to rise up the flue and exit the chimney where the vapors cooled. Please note that the exhaust is very caustic and when it cools it condenses into water which is also, caustic.   Comparatively, believe it or not, gas appliance exhaust isn’t as hot as oil exhaust or wood smoke.

When the gas exhaust enters the clay flue in the original chimney, since the gas doesn’t start out as hot, it actually cools and condenses before it leaves the clay flue pipe. The caustic materials in the gas have now attached, mixed with water, inside the clay flue pipe. Over time this caustic water can corrode the clay, the mortar connection clay sections and the mortar and brick of the chimney’s structure.

When the appliance is upgraded to gas, an insert should be installed. The metal flue duct will reduce the diameter and make the draft characteristics of the metal flue pipe much more efficient and appropriate for a gas appliance.

Conclusion

Regardless if you are buying or selling a home, it is a significant transaction either way. Buy with confidence and sell with pride by having Regal Home Inspections, LLC conduct your inspection. We look for things that you probably never considered. That’s why we can help you avoid issues and delays in closing when the buyer and seller are of different minds on whom should address inspection item A, B or C. We can help get some of them out of the way for the seller or help the buyer identify issues that may not be obvious.

Regal Home Inspections, LLC starts every inspection with the presentation of a folio of information for the client. That folio includes general information but also includes a written introduction to the inspection. I present an initial overview of the main elements detailed in this article; Laws that govern the inspection process, areas that will be inspected and more. I believe this is unique to the service that Regal Home Inspections, LLC provides.

I would appreciate your comments about this article. Please email your comments to frank07722@gmail.com

About the author. I am a NJ Licensed Home Inspector. I am the owner and Inspector at Regal Home Inspections, LLC. In addition to being a New Jersey Licensed Home Inspector I am also a NJ-DEP certified Radon Measurement Technician and Regal Home Inspections, LLC has also collected samples for lead paint, allergens and mold. We are affiliated with the state’s best labs that perform the sample evaluation and testing. We can also help facilitate the testing of septic system and numerous aspects of oil tank evaluations. This includes oil tank integrity testing, tank locate services and soil samples. We work to ensure that the house you’re buying is sound or that you know of any issues.

Electrical Issues – Part 3

Electrical Issues – Part 3

Observations of a Home Inspector

By Frank J. Delle Donne, Licensed Home Inspector

May 15, 2014

For most people, purchasing a house is the largest purchase they have thus far made. Help ensure that you, “Buy with confidence. Sell with pride” ® by using Regal Home Inspections, LLC.

Please leave a review of this article or of our services.   Click Here and then click on, “Write a Review”.

Never perform electrical work yourself unless you are a licensed electrician. Nothing in this article suggests that you should attempt to diagnose any electrical problems you may have or make any repairs yourself. Any attempt to make electrical repairs or upgrades can lead to your death. ALWAYS hire a licensed electrician to perform any electrical work. Electricity kills. Never remove the cover to your circuit breaker panel.  

If you’d like a visual inspection of your home’s electrical system because you think there might be problems with it, please call Regal Home Inspections, LLC and we can perform a limited, visual electrical inspection of your system in accordance with the New Jersey Home Inspection laws and ASHI & NACHI Standards of Practice. This is not a “to code” inspection. Our inspection DOES NOT guarantee conformance to local electrical codes.

Introduction

I would predict that 90% or more of the homes that I have inspected have had some sort of electrical system issue. Because of the fact that electricity is very dangerous if not handled by professionals most of the time an electrical issue is determined to be a Material Defect (aka Major Defect). Being classified as a Major Defect in a home inspection report usually means that some corrective action will be taken by the seller prior to closing or that monies have been set aside (escrow) so that the buyer can address the problem after closing occurs. It is very important that if the later of these two situations exist that the buyer use the money for the intended electrical repairs. As defined by NJ State Law, a Material Defect is a condition of the structure or of a System or Component that substantially affects the habitability, value or safety. Since electricity can kill, and often does, electrical issues almost always rise to the level of a major SAFETY issue.

This piece looks at three situations that have recently been found (in the last 2 months prior to the date of this article) that have been highlighted as SAFETY issues and require immediate attention by a licensed electrician.

Double Taps

When working with electricity it is very important to have and maintain a secure, tight connection whenever two pieces of the electrical system are connected together. This applies to situations when two wires are spliced (twisted) together or when one wire is connected to a mechanical connection. The mechanical connection may be a screw on the back side of a light switch or outlet or it may be a screw lug on a circuit breaker in the Main Panel or Sub Panel. Why is a good, tight and secure connection necessary? Without getting too far down into the detail, if there is a loose connection and electricity is flowing there is a high potential for a small gap to occur and sparks (or arcing) to occur. If there’s a less-than-ideal gap then the connection between these two metal components may be a high resistance connection. This could lead to the buildup of heat. Both of these two potential situations can lead to fire.

A double tap is when someone incorrectly tries to connect two wires to the circuit breaker lug and is of concern because most circuit breakers are designed to hold only 1 wire. When 2 wires are installed into a single lug there is a potential that the wires are of differing gauges (sizes and therefore wire diameters). The larger one may be tight but the smaller will have a poor, possibly high resistance connection and that, as we know, can generate heat or arcing and be a fire hazard.

From a circuit breaker function point of view, the breaker should still trip (shut off) if the total current draw reaches the breaker’s trip rating (15amp, 20amp, etc.) due to the total load from the double tap wires.

The photo(s) below show what a double tap looks like.

DSCF6011
The 2, lower left circuit breaker lugs each have 2 wires into them.

Bad Electrical Panels

Electrical panels should protect people and property from high voltage energy as found inside an electrical panel. Make no mistake, the energy entering and inside the electrical panel is more than enough to kill someone or start a fire. The panel is designed to isolate the energy fields so the hot or ungrounded wires are not energizing metallic components that should not be energized. When energy is present where it shouldn’t be it is sometimes called, “stray” energy.

Of course, all hot electrical components should be insulated as not to be a possible source of electrocution and the Electrical (or Service) Panel is no different.

They should be clean and free of contaminants or damage. The cover should be properly secured using the correct types of screws. Screws used to connect a panel cover are special in that they do not have sharp points like most screws. The screws for electrical panels have flat tipped screws reducing the possibility that the screw will poke a hole in a wire’s insulation and allow electricity to stray to the panel box.

The panel box should be completely sealed. No holes or gaps where someone can poke something in and accidentally get electrocuted. They should be clear of dirt and debris and garbage.

These photos are indicative of a very bad panel. Can you tell why?

DSCF5560
Obvious Rust
DSCF5561
Rusted screws on breaker and Double Taps

Knob and Tube Wiring (State of the Art in electrical wiring Circa 1900)

It is not too uncommon to find working (energized) K&T wiring in a very old house today. When electricity was first deployed residentially the technology was Knob and Tube. They did not have cable like we have today. Today, a cable is a tube or jacket of metal or plastic or rubber like material and inside there are multiple wires and each wire is insulated with its own plastic jacket. Sometimes the, Ground wire isn’t insulated but the Hot and the Neutral wires that make up the circuit are.

Well in the ”olde tyme” days wiring was different and as mentioned earlier, it’s still here in some old houses. Way back when, the electrician installed individual wires and used ceramic knobs and ceramic tubes to attach and route the wires up the walls and through the floor joists for example. You can see this in the photos below.

In fact way, way back when, they used one wire and looped one big circuit. This is like the old Christmas tree light problem. One bulb goes out and the circuit is broken therefore all the lights go out. This too can be seen in the photo below. Note the one wire going into the lit bulb and one wire out. Remove the bulb, or if the bulb pops, and all the lights on that circuit go out!

So what’s the home inspection philosophy about K&T wiring? Well, ideally, if you have K&T wiring that is energized you should remove it. It’s like still having gas lamps in the house to provide light. You wouldn’t, right? But technically, the mere presence of K&T wiring is not a Material (aka Major) Defect if (and it’s a HUGE if) the K&T wiring was never modified or touched electrically. Heck, it has lasted this long. It can last longer. However, if it was touched, modified, tapped into, etc. it must be removed. It’s good advice and good, prudent practice.

In the photos below look for the white, ceramic knobs and the white ceramic tubes and the wires associated with them.

DSCF5125
Notice the one wire in and out of the light as well as the ceramic knobs holding the wires off the wood framework.
DSCF5130
Can you pick out the two wires and the white, ceramic tubes in the wood joist?

Conclusion

There are way too many electrical issues to mention in one article that I have seen in my inspection career. More articles will come but for now, here are a few of the problems that I have seen and thought you might be interested in learning about.

Regal Home Inspections, LLC starts every inspection with the presentation of a folio of information for the client. That folio includes general information but also includes a written introduction to the inspection. I present an initial overview of the main elements detailed in this article; Laws that govern the inspection process, areas that will be inspected and more.

I would appreciate your comments about this article. Please email your comments to frank07722@gmail.com

About the author. I am a NJ Licensed Home Inspector. I am the owner and Inspector at Regal Home Inspections, LLC. In addition to being a New Jersey Licensed Home Inspector I am also a NJ-DEP certified Radon Measurement Technician and Regal Home Inspections, LLC has also collected samples for lead paint, allergens and mold. We are affiliated with the state’s best labs that perform the sample evaluation and testing. We can also help facilitate the testing of septic system and numerous aspects of oil tank evaluations. This includes oil tank integrity testing, tank locate services and soil samples. We work to ensure that the house you’re buying is sound or that you know of any issues.

 

 

Pre-Listing or Seller’s Inspection

Pre-Listing or Seller’s Inspection.

Why is it the right thing to do?

By Frank J. Delle Donne, Licensed Home Inspector

January 9, 2014

About the author.  Frank J. Delle Donne is a NJ Licensed Home Inspector, owner and Senior Inspector at Regal Home Inspections, LLC.  and a member of the New Jersey Association of Licensed Professional Home Inspectors (NJ-ALPHI) & the National Association of Certified Home Inspectors (NACHI).  Frank graduated from Pace University in New York City and he is a 30+ year veteran of the telecommunications industry.  Frank founded Regal Home Inspections, LLC and is building it into the most professional, comprehensive and thorough inspection company in New Jersey leveraging his technical skills as well as his professional sales skills learned during over 3 decades of industrial sales.    Regal Home Inspections, LLC can also test your house for radon having exceeded the NJ requirements to obtain a Radon Measurement Technician certification.  Indoor Air Quality, Mold and Allergens are also tests we can provide for real estate transactions or for the self motivated, concerned homeowner.  We can also facilitate testing of septic systems and oil tanks; tank integrity and soil tests below ground.

Introduction – Preparing to List Your Home

Most homeowners like their homes.  They’ve probably lived in it for a number of years and, for whatever reason, are compelled to sell.  Perhaps it’s to downsize or upgrade.  Perhaps to relocate to a new area, move to a better school district, move back home or away from the in-laws.  Whatever the reason, you have decided to sell your house.  So what’s next?  You contact a Realtor® or a number of agents.  You compare recent sales in your area or, “comps”.  You think about an asking price and perhaps a minimum price and think, “I won’t go below this price or that.”.  You consider the balance on your mortgage, interest rates for a new mortgage and how much new home you can afford to buy.  Your new commute, your new local taxes, and you should consider the condition of your house.  There are lots of things, right?

Perhaps the last point is one that you should give some extra consideration to.  Why?  We all know that it’s the buyer’s market.  A qualified buyer with a no-contingency purchase, good credit and ready to move in is what every seller is looking for and for that purchaser, there are probably numerous options for them in your area, in that school district, with an easier commute, etc.

So how do you attract the buyer to your house?  Well, you could drop the price or initially set the price so low it sells in days.  In my opinion, if you see a house that has a contract for sale within a few days of its listing the price was probably set too low.

Sprucing Up Your Home – Curb Appeal and Neutral Colors

I am no strange to these real estate sales TV shows.  Whether it’s someone flipping a house or a team of experts showing someone how to prepare their home for sale, like them or not, they have a point.  Homes with great curb appeal and those that present well inside will sell faster than a house that looks like it needs significant repairs and improvements.

I don’t think anyone disagrees that a new coat of paint in the rooms and halls, steam cleaning the rugs, lighting a few scented candles or baking a batch of chocolate chip cookies or an apple pie during the open house will help present the house well.  Good work.  Your plan to appeal to the senses seems to have worked.  You get a contract and it goes into and out of attorney review and then the buyer schedules a home inspection.   This is when the items in disrepair and other issues come to the surface quickly surpassing the positive benefit of the coats of paint and aroma of the pies and cookies.  And you start thinking, is the deal going to go south?

Solution

While there are no guarantees in life except death and taxes, you can help minimize the potential for a last minute deal crash by having Regal Home Inspections, LLC perform a Pre-Listing or Seller’s Inspection.   As you may have read in some of the other articles I have written, there are numerous problems that I find that a homeowner isn’t even aware that I will be looking for.  The step on your front porch that measures 9 inches high, the downspout that dumps all the rain water off your roof next to your basement wall then the water enters your basement!  Or the simple electrical outlet problem that becomes a highlighted safety item in my or any inspector’s report.  Even something as simple as having (or not) the service records for your heating system and central air conditioner could result in price negotiations with the buyer at the last minute.  This is particularly important if those appliances are more than 10 – 15 years old.

The solution is to get a Pre-Listing or Seller’s Inspection.  Share that information with prospective buyers.  Perhaps correct as many as possible.  Show the buyer that you are diligent and thorough too.  You can, “Sell with Pride” and you can help them, “Buy with Confidence” as we say here at Regal Home Inspections, LLC.

Even if you don’t lift a finger to correct any of the items a Pre Listing or Seller’s Inspection may identify, you can at least use that information in your Seller’s Disclosure and state that the asking price has been set with these inspection items in mind.  Then when the buyer’s inspector finds the same issues, they are not a surprise to you or the buyer.

As we all know, if you get a buyer to agree to $X for your home and then the Inspector finds numerous safety and major defect items (items that a Pre-Listing or Seller’s Inspection would have found) the buyer is going to demand a reduction in price to fix those items.   You will either lose the sale or reduce the price.  This price concession can be for the water heater that’s perfectly fine but it’s 12 years old or the 100 am circuit breaker panel that many consider inferior for today’s living.

Summary

If the cost of a Pre Listing or Seller’s Inspection is $350 but it saves you $10,000 in last minute price concessions is it worth it?  If the inspection costs $450 but it saves you $5000 in last minute negotiations with the buyer or having to hire a plumber or electrician at premium wages to fix a problem  at the last minute to save the deal, is the $450 worth it?

Of course the Pre Listing or Seller’s Inspection is worth the cost.

I would appreciate your comments about this article.  Please email your comments to frank07722@gmail.com