Unit 2: Material Facts Related to Property Condition and Location

Which of the following can indicate issues with heating and cooling? -A furnace or air conditioning unit that does not kick on when the temperature is adjusted -Consistent temperatures throughout the home -Moisture in the basement -Windows that won't open or close

A furnace or air conditioning unit that does not kick on when the temperature is adjusted

Which of the following could be an indication of a foundation problem? Crack in a basement wall Doors that open and close easily Lack of moisture in the basement Windows that open and close properly

Crack in a basement wall

Three days ago, there was a severe thunderstorm in Shirley's town. Today, there's still a large puddle of water on her property, but it doesn't appear the neighboring properties have any puddles. This could indicate a(n) ______ problem. Drainage Easement Encroachment Foundation

Drainage

Inconsistent temperatures from room to room is a common indication of a problem with what system or home feature? Electrical Foundation Heating and cooling Roofing

Heating and cooling

Home inspector Maura was walking Thad through a property inspection. The frame house, on a slab foundation, had mulch piled up about 18 inches next to the house. Why was Maura noting this as a concern? Mulch is a flammable substance. Mulch isn't a sustainable material. Mulch next to wood siding may lead to wood rot. That amount of mulch might kill the plants it's meant to protect.

Mulch next to wood siding may lead to wood rot.

Water buildup, ice damming, and a fascia damaged by moisture are common ______ issues. Chimney Foundation Roof Window

Roof

The property Maureen is interested in doesn't appear to have exterior property condition issues. Which of these would be signs of a potential issue? a. During heavy rainstorms, water drains away from the house. b. Water puddles remain on the property more than 24 hours after a heavy rainfall. c. A basement has a musty smell, especially after it rains.

Signs of Issue: -Water puddles remain on the property more than 24 hours after a heavy rainfall. -A basement has a musty smell, especially after it rains. Not a sign of issue: -During heavy rainstorms, water drains away from the house.

Which of these could be signs of flood damage? Hot and cold rooms in the house Misaligned doors Soft or uneven floors Windows that won't open

Soft or uneven floors

Why are galvanized pipes a problem in older homes? They are not a problem. They are out of date and can lead to a variety of electrical problems. They can rust and cause leaks and low water pressure. They indicate the heating and cooling system(s) are outdated.

They can rust and cause leaks and low water pressure.

Missing, cracked, or displaced roof shingles can indicate ______ damage. Electrical Fire Water Wind

Wind

We hit on signs of drainage or flooding in the previous question. Now let's focus on signs of wind and fire damage. Which of these signal wind damage, and which signal fire damage? Missing shingles Staining around chimney Discoloration around windows

Wind Damage: -Missing shingles Fire Damage: -Staining around chimney -Discoloration around windows

Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond? -It doesn't fit aesthetically with the rest of the house. -The extra bedroom is inconsistent with the rest of the neighborhood, reducing its value. -You're certain it's not built to code, so Peter shouldn't make an offer on the property. -You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code.

The New Listing Kyle is a real estate licensee working with Penny, a buyer. A property just came on the market that Kyle thinks will be perfect for Penny. The listing description touts the spacious lot, professionally landscaped yard, and a new sunroom. It's perfect for anyone who enjoys spending time outdoors. At the showing, Kyle and Penny check out the new sunroom. Penny tries opening a window without any luck, and they also notice a crack in the wall near the door. But Penny can really see herself in this home. What should Kyle and Penny do? a. Discuss putting in an offer b. Ask the seller/listing agent about the window and the crack in the wall in the sunroom c. Walk away from the property

a. Discuss putting in an offer

Unpermitted Work The sunroom addition wasn't permitted. What three actions may the city (or county) require to rectify the situation? a. No action would be required, as the sunroom isn't considered "living" space b. Partial disassembly to inspect the work c. Full disassembly back to the original state d. Correcting issues associated with the addition

b. Partial disassembly to inspect the work c. Full disassembly back to the original state d. Correcting issues associated with the addition **Each situation may be different. Partial disassembly in order to inspect the property could find that the addition is up to code. It could also find that it does not meet code (which is likely, based on the red flags) and must either be corrected or go away entirely. These are probably not things a new buyer would want to deal with.

The New Listing Kyle and Penny discuss an offer to submit to the seller. Penny really loves this house and wants to put in an offer for the full asking price without any contingencies. What should Kyle do? a. Put in the offer b. Strongly encourage Penny to include an inspection contingency

b. Strongly encourage Penny to include an inspection contingency **Penny agrees to include an inspection contingency. Great suggestion, because it turns out the sunroom was unpermitted and is not up to building code. Kyle and Penny discuss their options, but Penny ultimately decides not to purchase the property and gets her earnest money back. Time to keep searching. **Great work! Investigating red flags that arise related to the property's condition can help your buyer avoid getting into a tough situation. Always encourage a home inspection, as well. This becomes especially critical when additions or alterations have been made to the property. No buyer wants to find themselves in a bad spot if the seller failed to follow proper procedures for this type of work.