Missing! BEFORE YOU WRITE THAT OFFER!

It's an exciting moment! You've been pre-approved for a loan, and after weeding through dozens or even hundreds of homes on the internet and visiting ten in person, you've found the perfect place to call home!

Yep, you're convinced this is the right one. The ONE. You've walked around the inside of the home, have imagined how your furniture will fit in each room, you've even measured to make sure your huge dining hutch will fit on the wall, and you've wandered around the outside and it looks great. Maybe you're even on your second showing and have brought a trusted friend or family member(s). So, it's time to write an offer, right?

Nope! Before writing an offer, a smart buyer will exercise due diligence with the easily accessible aspects of the property. Why? A home inspection can cost $250 and up, taking one or two hours of your time can either save you the money if you pass on the house, or make you confident that it will be money well-spent if you decide to move forward with an offer. Additionally, a closer look may adjust your offer amount. Bring these tools with you, or make sure your Realtor has them handy: a long tape measure, a flashlight, a camera, a notebook and pen, five or so plastic shopping bags, and binoculars, to check the following items:

BUYERS INSPECTION BEFORE WRITING AN OFFER:
1) Walk the rear yard completely, including the interior and along the perimeter. Wear enclosed, sturdy shoes for this task, and walk carefully. Look for odd sink holes or depressions. On older home lots, watch for septic tanks or well openings. Look for cast off trash hidden behind outbuildings or brushlines. Make notes of questions or concerns.
2) If there is a fence, is it in good repair, and does it enclose the yard? Walk through gates? If you need a fence for Fido, children or privacy, make a note of the missing or damaged sections. If the fencing does not all match, make a note for your agent to confirm which section of fence belongs to which property.
3) While you're in the rear yard, talk and make a little noise. Do the neighbors' dogs bark without ceasing, or do they quiet after a few minutes? Do the neighbors shush their pets (successfully), or are they left barking the entire time you're in the yard? Make a note of it.
4) Trees, plants, landscaping. Are all trees and shrubs in good health and trimmed away from the roof, powerlines, windows, doors, walkways, driveways? Is the landscaping established and attractive or overgrown? Make a note of these items, including quick thoughts on improvements you might make.
5) Standing at the back of the property, look at the roof line. Do you see any bows or dips in the roof, any bumps or shingles out of place or missing? How about roof vents: do you see any? If you see them, are they rusty or in good repair? If there is a chimney, does it look in good repair or can you see crumbling mortar? Does it have a cap of some sort on it?
6) How do the gutters look? Are they all there? Attached or hanging down? Are there downspouts that lead to the ground? Are they attached to the house? Do they have extensions that keep the water from pooling at the base of the foundation? Do you see erosion where the water has washed dirt away from the foundation? Does the ground slope toward or away from the house? Make notes.
7) Stop and look around. What do you see on all sides of the rear yard? Eyesores, dogs on chains, beautiful landscaping? How do you feel about it?
8) If there is an outdoor entertainment space,  stand and look around, and then squat down and look around. Do you like what you see?
9) Look at the exterior of the house carefully. Is it in good shape? Is there any cracked brick or peeling paint? How about the windows and ledges? Rotted wood along gutter line or underneath (fascia)? Go around the entire home completely, looking at the condition of each window and door frame, along with siding. Are there holes in the siding?
10) Look for crawl space doors and ventilation openings. Can animals get into the crawl space, or does it appear to be enclosed with no missing covers or screens?
11) Where are the meters (electric/gas/water meters, and other utility connections to the house located? Make a note of it. If you see a gas meter, but the house is listed as electric only, verify if gas is used for heat, stove, fireplace or water heater. While some people love gas, it does create another bill and potential deposit to come up with. 
12) Check the walkways and stairways/stoops for cracks or separation from the house. If you are getting an FHA loan, there are requirements regarding handrails and railing safety.
13) Stand on the front porch. What do you see? Are the homes in your vision, wherever you look, acceptable to you as an every day view? In urban neighborhoods, this is especially important. Great deals can be had, but understand that transitional neighborhoods can include homes in disrepair or under construction. If you do not like the street view, do not offer on the house until you can honestly say you do. Do not compromise on a location that you feel comfortable in, and do not let anyone talk you into a place you do not feel safe in. This is your home, your nest, your castle, your place to call home. What is someone else's cup of tea, is not necessarily yours. Trust your belly on this one!
14) Go back inside and check to see if the doors and windows all open and close securely and easily. Are there any cracks along door frames, window frames? Does the heat come on, or the a/c if in warmer weather? (Don't switch from one to the other, it can harm the unit!) Take notes.
15) Is the floor sagging in spots or significantly slanted like a fun house? Does it feel solid to walk on, or does it feel soft and bouncy in spots? Make a note.
16) Check the bathrooms. Run water in the sink and flush the toilet, do you still have water coming out of the faucet or has it gone down significantly? Make a note of water pressure concerns, if relevant. Check under the sinks, any drips or ruined cabinet bottom? Are the tub/shower surrounds in good shape, tile mounted securely, is there a shower head, or just a tub? Are you okay with that? Stand near the tub and toilet and step around them: is the floor squishy and gives, or does it feel solid? If there is an exhaust vent, turn it on, does it work and run smoothly? If there is no window in the bath, you will want an exhaust vent to avoid mold and mildew. Make notes.
17) Kitchen: Are the counters installed firmly with sealed splashes, or is there evidence of damage to the walls or counters? Does the faucet, sprayer and garbage disposal all work? Does the drain pipe under the sink leak? Is the cabinet bottom damaged? Does the floor around the sink feel solid? Do the cabinets match and open and close correctly? Do they all have matching knobs or pulls? If there is a breakfast bar, does it have adequate support? Turn on the stove exhaust vent: does it work?
18) If there is an attic pull-down, verify that the ladder is in good repair, and at least stick your head in the attic and see if it is clean, has flooring for storage or insulation that looks fluffed up, shine your flashlight if there isn't a light switch and see if the HVAC unit or water heater is in the attic. Is there a lot of personal property and debris in the attic? Make a note of what you see.
19) If there is a basement that is accessible, give it a visual inspection, too. Is the HVAC or water heater in the basement? Does it look well-maintained and neat, or is it so full of property that you can't see the side walls? Standing on the floor, look up: do you see old iron pipes or newer plumbing? Is there insulation hanging down, or is it neatly tacked up? Are there a tangle of wires everywhere, or does the wiring appear neat and tacked in place? Find the electric panel and confirm that it is updated with breakers or still fuses, and if each item is labeled or not. Is the basement dry? While an unfinished basement with dirt behind retaining walls will have an earthy, damp smell, standing water or obvious watermarks going up the sides of the walls are worth noting. Is there a drain and a mechanical item in the drain (sump pump, used to move water out of the basement if it should take water in.) If you are not comfortable in basements, be sure to bring someone who will check this out for you. Make notes.
20) If there isn't a basement, but there is a crawl space, use the plastic bags to kneel on, and put two on your hands to lean into the crawl space and flash the light around. If it's a cellar, of course, walk into it, but many crawl spaces have body-sized openings, and I'm not suggesting you crawl around under a house. I am suggesting sticking your head and a flashlight in, to see what's under there. Is there trash or mud or standing water? Is there enough room for a reasonably sized contractor to crawl under there to do work (this is an important factor for FHA, if there isn't adequate space, it may have to go conventional or have the crawl space dug out if you want to move forward with this house.) Is there a plastic liner on the ground that doesn't appear torn or missing in places? If there's insulation, is it tacked up neatly? What else do you see? Do you smell anything bad? Make a note. Put the cover back up so pests can't get in.
21) Storage buildings, gazebos, pools, patios, decks, sports courts, driveways and garages. Inspect them visually. Are they sturdy, watertight, in good condition, attractive, useful, safe? Would you prefer they be removed by the seller? Make notes.
22) Planes, Trains and Automobiles... Is the house subjected to noise or traffic that you would find objectionable? Is there a creek or unfenced water way running through or on the boundary of the property? How about traffic? Is there a school across the street where parents and buses will be congested during weekdays? A large church or other business that might have traffic issues during certain hours? What is acceptable to you? How about the driveway? Are you having to back out into heavy traffic? Are there visual obstructions that make it unsafe? Is it fixable? Make notes.
23) The neighborhood. So you've done all your visual, sound and smell inspections, looked at the property with a critical eye. Still like what you see? Then it's time to meet the neighbors! I absolutely encourage you to knock on the doors of the nearest homes and introduce yourself. See what the neighbors are like, and ask if they like living in the neighborhood and if they know anything about the house. Also find out who the neighborhood watch captain is, official or unofficial! Go meet them. If you feel that these folks would be comfortable neighbors, then you have one more assignment.
24) Go back in the evening, and sit in your car with the radio off. Watch the street for an hour or so, a weekend night is ideal, but you will be able to see people coming home from work, kids out of school, people walking their pets, etc. Is this where you want to call home? If it is, then...
25) Discuss your list with your Realtor. These items are negotiable and important to bring up in the initial offer, if they are of significant concern to you. While your buyer's initial inspection should NEVER take the place of a professional home inspection, you now know much more about the property than a typical buyer. This gives you a solid advantage when you sit down to write an offer, and what items you want the seller to repair up front, or to ask for a concession in price if they can't/won't make the repairs. (Note: If you are buying a home AS IS, such as a foreclosure or short sale, and qualify for FHA financing, you might also consider a 203k FHA loan, which provides money for the purchase and repairs. Ask your lender if they offer this loan before looking at AS IS homes. Not all lenders offer them or have experience with them. If your lender have not done 3 in the past two months, you may want to ask for a referral or interview other lenders with more experience. 203K loans can be a great opportunity, but require special handling and a lot more effort from you, your lender and Realtor. Your Realtor should be knowledgeable about these options, and have referrals for lenders who offer this type of loan.)

If you are intimidated by this list, please read it through several times. Bring someone with you if you don't feel comfortable doing it yourself, and take notes. This investment of time, especially for an inexperienced buyer who does not know the neighborhood or street well, will enable you to make a clear decision about whether this home purchase is right for you, and help you determine a fair price to offer. When you do have a professional home inspection, you will receive a much more detailed inspection and the inspector may find things that were not evident in your initial preview of the home. This is to be expected. No home is perfect, and an inspection is to determine the current condition of the home and all its systems, and whether they are functioning as intended. Make sure your home inspector is licensed (or in a state that doesn't require a license) highly recommended by several people.

This was a long post, but we feel passionately about equipping our clients and friends for success, and hope this has empowered you with confidence to look at your potential home with new eyes.

Happy Househunting!

Sher Powers
Urbane Residential Specialists