Inspection, RTI's, and Common Repairs Found During Inspections
The inspection process is a critical component of moving deals through to closing.
It is the number one reason deals fall apart. Many agents often feel that this is tougher than writing and negotiating the initial offer.
Being able to manage the inspection process, response to inspections, and setting expectations is a vital component of being a good agent. Without crafting this skillset, you will have more deals fall apart than an agent who is well versed in this area.
The MOST important piece of the inspection process, starts prior to the inspection process.
It is critical to set expectations ahead of time with client.
It’s important your clients understand what to expect during an inspection.
- Remember the 3-D'S:
- DAMAGED— if an item is damaged, it can be requested to be repaired
- DEFECTIVE— if an item or condition is defective
- NOT DISCLOSED— if an item is not listed in the disclosures or pre-inspection, and it is found, it can requested to remedy this issues
- Pre- Inspections: it's important to note, if a property has been pre-inspected, any items on that pre-inspection are now considered part of the disclosures. Any damaged or defective items noted on there MUST be negotiated as part of the initial offer. Your buyer can still conduct their own home inspection, but any duplicate findings, cannot be requested to be repaired that were not requested as part of the initial offer. =
It's very important to note:
- During the initial viewing of the home, and prior to writing an offer, it's important to take special note of major mechanical items and their condition, including:
- Roof, Furnace, A/C, electrical panel (be sure to check for fuses and Federal Pacific panels (fire hazard)
- The inspection process is not designed to bring older items into today's current building code
- Items that are old(er) or past their useful life, but still functioning, cannot be requested as items to be replaced or a credit towards same.
Major Systems in Homes of Any Age
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Foundation / Slab
Foundation engineering has improved significantly over the past 50 years. However, foundation problems can happen in any home. The good news is that properties usually don’t start suddenly moving, so if a property is within tolerance now, there’s a great chance that it won’t have problems in the future. Foundation repair is expensive and very involved.
| Type of foundation | Condition | Explanation | What to look for |
|---|---|---|---|
| Poured concrete- most common in new(er) construction | Best | Forms are used to pour concrete into. One continuous 'pour' with re-bar reinforcement | Vertical (somewhat common) and Horizontal (not good) cracking |
| Block- common in the 50's and 60's | Better | Blocks are set on top of and next to each other | Stair-stepping, movement of blocks, gaps |
| Limestone/ Rock- common in homes built pre 1950's | Good | Limestone blocks or rock are set and mortar is used to join the rock together | Moisture, shifting, lines/ cracks |
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HVAC (Air Conditioner and Furnace)
HVAC systems are generally $3,000-$7,000 per unit (A/C and furnace) if they need to be replaced. Typical lifespan of 15-20 years before they need to be replaced. You don’t proactively replace an old air conditioner if it's still working (We have seen systems as old as 30 years still chugging along, but that’s probably just luck!)
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Roof
Roofs are built with 20 or 30-35 year shingles (sometimes there are 50-year metal or tile roofs, but this isn’t as common.) Shingle roofs are typically $10k to $15k, but the price does vary based on the size of the roof (such as a 1,500 sq/ft home).
Inspectors will usually say a roof is “at the end of its useful life” when it’s a 15-year-old roof that’s rated for 20 years or when it’s a 20-25-year-old roof rated for 30 years.
| Type | Life expectancy |
| Ashphalt Shingle | 20-30 years |
| Metal Shingle | 50 years |
| Metal | 50+ years |
| Wood shaker | 20-30 years |
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Hot Water Heater
A traditional hot water heater will last 10-15 years (and sometimes up to 20.) They’re relatively simple machines and don’t usually break, but the tank will eventually fail. When that happens, it’s $1500-$2000 to replace it.
- Tankless water heaters (high efficiency) have more moving parts, and can break down more commonly. They’re $3500-$4000 to replace.
Air Conditioning Units
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R22 Coolant in HVAC Systems
R22 coolant was used in most HVAC systems until 2010 and it was known to deplete the ozone layer. In 2010, the EPA. stopped the sale of new air conditioning units that use R22. In 2020, the US banned the manufacture or import of R22. Because of this, most HVAC systems built in 2010 or earlier that use R22 (which is most systems built during this time) are obsolete. If the coolant leaks, you cannot refill it. If the system breaks, most HVAC techs will recommend a total replacement.
Fogged Windows
- Homes built from 2000 to present will have double-paned (and sometimes triple-paned) windows, which is great. When double-paned windows lose their seals, they will fog. This is a cosmetic issue, not a functional issue, but they do look bad, and they will be written up in the inspection. It is roughly $200 per window to replace the panes.
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Masonite Siding
This is a siding material that is no longer in use because it is a poor product.
- Masonite is a pressboard product that will soak in water and then deteriorate.
- Masonite siding is not a problem with regular maintenance (paint) but many homes built in the 1990s have not been perfectly maintained, so it’s normal to see issues.
- Replacing all of the siding is very costly. You can typically replace sections of the siding and repaint as a much more cost-effective solution.
- https://dependablehomeservices.net/common-masonite-siding-problems-and-how-to-fix-them/
Special notes:
Homes Built from 1970-1990
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Lead-Based Paint (<1978)
Lead-based paint is a potential health risk and lead paint was banned in 1978. According to the EPA, 24% of homes built from 1960-1978 have lead paint and 87% of homes built <1940 have lead paint. It’s safe to assume that the older a home is, the higher the likelihood that it has lead-based paint. Lead-based paint is harmful when ingested and conditions are most dangerous when paint is peeling or chipping. RealSimple has an excellent write up here.
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Foundation Problems
Foundation problems can occur in any home, but it's always a good idea to look in the basement or the exterior to determine the foundation type.
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Federal Pacific Electrical Panel
“FedPac” panels were one of the most common electrical panels from the 1950s to 1980s. Federal Pacific lost a lawsuit in 2005 and is no longer in business. There are no conclusive studies to determine if there is additional risk to owning a home with a FedPac panel (and there are still millions of homes with these panels) but inspectors will always call out these panels and electricians will always recommend that you replace them.
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Single Paned Windows
Double-paned windows didn’t exist until the 1980s and weren’t common until the 1990s. When you’re looking at homes built in the 1980s or earlier, it’s great to take note of whether or not the windows have been replaced with double-paned windows. Double-paned windows look nicer, they block noise, and they’re far more energy efficient than single pane.
Homes Built from 1960-1970
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Cast Iron Plumbing
Cast iron plumbing was used in almost every home built pre-1970. This is the sewer line that runs under the house and to the street (in the ground.) Cast iron rusts over time and will fail. It’s a very expensive fix in the tens of thousands. When looking at older homes, it’s very important to note if the sewer lines have been replaced or not.
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Lead-Based Paint (<1978)
Lead-based paint is a potential health risk and lead paint was banned in 1978. According to the EPA, 24% of homes built from 1960-1978 have lead paint and 87% of homes built <1940 have lead paint. It’s safe to assume that the older a home is, the higher the likelihood that it has lead-based paint. Lead-based paint is harmful when ingested and conditions are most dangerous when paint is peeling or chipping. RealSimple has an excellent write up here.
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Outdated Electrical Panels
We see many Federal Pacific electrical panels in homes built in the 1960s, but almost every panel installed in this decade is now considered outdated. It’s great to look to see if the electrical panel and service have been updated. If they haven’t, it’s almost certain that an inspector will call this out and an electrician will recommend a replacement.
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Aluminum Wiring (1968-1976)
Aluminum wiring was very common during these years, but you sometimes see aluminum wiring in homes built in other years from 1960-1990. Aluminum is less than ideal because it expands and contracts as it heats and cools, which can cause the connection points to loosen over time. You do not need to replace aluminum wiring (per code.) There are different opinions on the subject, but it’s code to either pigtail the aluminum/copper connections or to replace the outlets with CO/AL-rated outlets.
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Foundation Problems
Foundation design was relatively new in the 1960s, so it’s common to see problems. Most homes built in the 1960s have a foundation movement that is beyond tolerance if the home is east of Mopac. Homes west of Mopac sit on more stable soil (limestone) so foundation problems aren’t as common.
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Single Paned Windows
No homes built in the 1960s had double-paned windows, but many have been replaced over the years. It’s a great idea to take note of this when shopping.
Homes Built Pre-1960
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Foundation Problems (Pier & Beam)
Many homes built in the 1950s and 1960's are a block foundation.
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Cast Iron Plumbing
Cast iron plumbing was used in homes built pre-1960. This is the sewer line that runs under the house and to the street (in the ground.) Cast iron rusts over time and will fail. It’s a very expensive fix in the tens of thousands. When looking at older homes, it’s very important to note if the sewer lines have been replaced or not.
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Lead-Based Paint (<1978)
Lead-based paint is a potential health risk and lead paint was banned in 1978. According to the EPA, 24% of homes built from 1960-1978 have lead paint and 87% of homes built <1940 have lead paint. It’s safe to assume that the older a home is, the higher the likelihood that it has lead-based paint. Lead-based paint is harmful when ingested and conditions are most dangerous when paint is peeling or chipping. RealSimple has an excellent write up here.
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Outdated Electrical Panels
Almost every panel installed pre-1960 decade is now considered outdated. It’s great to look to see if the electrical panel and service have been updated. If they haven’t, it’s almost certain that an inspector will call this out and an electrician will recommend a replacement.
- Knob and Tube Wiring
This is a common wiring product that was used in old(er) homes. However, it can present a fire hazard and sometimes can be recommended to be replaced if possible.
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Ungrounded Electrical Outlets
You can tell if the outlets are ungrounded because they will be 2-prong (instead of 3.) If this is the case, then there’s no ground. Beyond the fact that you have to buy an adapter to plug in lots of electronics, the lack of a ground is a safety hazard. Grounding every outlet is expensive. You can install GFCI outlets throughout as a less expensive solution that is per code. Many electricians will recommend grounding one outlet per room as a less expensive solution that is much safer than ungrounded outlets.
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Asbestos Siding
Asbestos siding is extremely common in homes built pre-1960. The good news is that asbestos siding becomes a problem only when it’s crushed and the dust gets into the air. If you choose to replace the siding, there is an additional disposal cost for asbestos, so it’s more expensive to replace than any other type of siding. However, it's best to leave it alone if there aren't any pressing issues.
This list doesn’t encompass everything you’ll find on an inspection, but these are high-impact items that are great for you to be aware of. Please reach out to us if you have questions about anything here or any other repair items!