Upload
darien-moring
View
212
Download
0
Tags:
Embed Size (px)
Citation preview
“Run of the Mill” or “Run for the Hills”?Understanding Common House Conditions
Presented By: Alan Carson and Andy TranCarson, Dunlop & Associates Ltd.
Carson, Dunlop & Associates Ltd. is solely responsible for the content of the material used in this seminar. © 2012
8 Common Issues
1. Wet basements2. Old roofs or leaky roofs3. Old furnaces and boilers4. Old air conditioners5. Knob-and-Tube wiring6. 60-Amp electrical service7. Aluminum wiring8. Vermiculite insulation
2
Wet Basements
• What it means• Water in the basement can be a scary thing for any
potential homebuyer• Older unfinished basements might have water
leaking in (not unusual)• Greater concern if the basement is a finished living
space• The remedy to deal with wet basements depends on
different circumstances
3
4
Wet Basements
5
Wet Basements
6
Wet Basements
7
Wet Basements
Some Perspective• A large number of basements leak at some point• Weather dependent• Largely depending on water management from
exterior of the home
8
Wet Basements
What do home buyers think it means? • The foundation is damaged• They may need to waterproof the foundation• They will have to spend a lot of money to correct the
water leakage
9
Wet Basements
What does it really mean? • Sometimes, the client is right• More commonly, this is typical• This is rarely a structural problem• If water accumulates on the outside, it will leak inside• Higher costs to repair if basement is finished
10
Wet Basements
Any chance the basement will be wet here?
12
Wet Basements
13
Wet Basements
14
Cleaning the gutters often cures the wet basement!
15
Sometimes we need to fix them!
Wet Basements
17
Wet Basements
18
Wet Basements
19
What do we say to clients?• We see this in a majority of homes• Many basements leak at some point• It is rarely a structural problem• It is easily corrected in most cases
20
Wet Basements
Old Roofs or Leaky Roofs
21
Description• Old roofs – near or past end of life• Leaky roofs – isolated areas of water penetration• May be able to determine approximate age of roof
when outside• Can usually see water damage inside the home
22
Old Roofs or Leaky Roofs
23
Old Roofs or Leaky Roofs
What do home buyers think it means? • The entire roof needs replacement• The house is not well maintained• There is probably concealed damage• They will need to spend thousands
24
Old Roofs or Leaky Roofs
What does it really mean? • There is probably an issue at a flashing or joint• Most leaks are the result of a localized issue• The roof is actually old and needs replacement
25
Old Roofs or Leaky Roofs
Worn out Roof 20-year old shingles
26
Really Worn out Roof!
27
Minor Roof Leak
Can you guess where this roof may leak? 28
Flashing Leak
29
30
Flashing Leak
What does it cost? • A non serious roof repair is usually a few hundred
dollars.• The new roof covering is several thousand
31
Old Roofs or Leaky Roofs
What do we say to clients?• We should fix the leak!• Minor roof leaks are not unusual• Roofs are consumables
32
Old Roofs or Leaky Roofs
33
Old Furnaces and Boilers
34
Old Furnaces and Boilers
Indications that it is old:• The seller informed us• Furnace shows manufacture date• Non-functional• Red-tagged by technician• Appears to be older and there is visible damage
35
Old Furnaces and Boilers
What do home buyers think it means? • House is in bad shape/poorly maintained• All other components will be near the end of their life• The cost to correct will be huge
36
Old Furnaces and Boilers
What does it really mean? • Old/defective mechanical equipment is not related to
condition of house• Does not mean all systems are old• May need repair OR replacement
37
Old Furnaces and Boilers
38
Old Furnaces and Boilers
39
Old Furnaces and Boilers
40
Old Furnaces and Boilers
What does it cost? • Repairs cost depends on issue• A new furnace or boiler is typically $4000 to $8000• As of 2010, all new furnace installations must be high
efficiency• Still some grants from utilities and municipalities
41
Old Furnaces and Boilers
What do we say to clients? • Determine first if it’s repair or replace• Furnaces and boilers have a life cycle• Lifespan can be 15-30 years
42
Old Furnaces and Boilers
Old Air Conditioners
43
Indications that it is old:• The seller informed us• A/C shows manufacture date• Non-functional• Appears to be older and there is visible damage
44
Old Air Conditioners
What do home buyers think it means? • House is in bad shape/poorly maintained• All other components will be near the end of their life• The cost to correct will be huge
45
Old Air Conditioners
What does it really mean? • Old/defective mechanical equipment is not related to
condition of house• Does not mean all systems are old• May need repair OR replacement
46
Old Air Conditioners
47
Old Air Conditioners
48
Old Air Conditioners
What does it cost? • Repairs costs are typically inexpensive• Compressor replacement can be over $2000• A new air conditioner is typically $3000 to $5000
49
Old Air Conditioners
What do we say to clients? • Determine age of system (repair or replace)• Air conditioners are consumable components• They last about 15 years
50
Old Air Conditioners
Knob-and-Tube Wiring
51
Description • Used in all homes up until about 1950• Good-quality copper wiring, with no grounding• Separate cables for black (hot) and white (neutral)• Can be an issue with insurance companies
52
Knob-and-Tube Wiring
53
Knob-and-Tube Wiring
Knob-and-Tube Wiring
Knob-and-Tube Wiring
What do home buyers think it means?• The house is poorly built• The wiring is unsafe• They will not be able to get insurance
56
Knob-and-Tube Wiring
What does it really mean? • The house is like every other house built before 1950• Not unsafe, unless it has been tampered with
incorrectly• Insurability will depend on extent of wiring and
insurance company
57
Knob-and-Tube Wiring
58
Knob-and-Tube Wiring
What does it cost? • Rewiring may cost $1,000-$2,000 per room and $10k
to $15k for average house• This is a significant upgrade, not a repair• Interim solution - GFCI outlets - $50-$100 per circuit
59
Knob-and-Tube Wiring
What do we say to clients? • This wiring is what we expected to find • The wiring is usually safe but should get Electrician to
verify• Check for insurability before purchasing• This cost is significantly reduced if done when
renovating
60
Knob-and-Tube Wiring
60 Amp Electrical Service
61
62
60 Amp Electrical Service
Description • An electrical service typical of older homes• It may be too small for modern lifestyles• It is not a safety issue• It can be an insurance issue
63
60 Amp Electrical Service
What do home buyers think it means?• The house is poorly built• 60 amp service is unsafe• They will not be able to get insurance
64
60 Amp Electrical Service
What does it really mean? • It doesn’t have anything to do with the quality of the
home• It is not a safety issue, but a capacity issue• Many insurance companies require the service to be
upgraded to 100 amps
65
60 Amp Electrical Service
66
60 Amp Electrical Service
What does it cost? • $1000-$2000 to upgrade to 100 amps• Often included with other improvements
67
60 Amp Electrical Service
What should you tell your clients? • Nothing to do if capacity is adequate• Allow for possible replacement depending on lifestyle• Check with insurance company. They may require a
100 Amp service
68
60 Amp Electrical Service
Aluminum Wiring
Description • Commonly used from mid-60s to late-70s
69
Aluminum Wiring
Description
Pre-1972 • AKA as Utility Grade Aluminum• Higher aluminum content (softer)• More prone to overheating
Post-1972 • AA-8000 series Aluminum• Better alloy• Stronger and more flexible
70
Description
Pre-1972 • Lots of poor connections• Should upgrade using “COPALUM”
Post-1972 • CO/ALR devices required• Performed similar to copper• Problems with twist-on connections
71
Aluminum Wiring
72
Aluminum Wiring
73
Aluminum Wiring
74
Aluminum Wiring
What do home buyers think it means? • Inferior quality home• Unsafe wiring• Cannot get insurance
75
Aluminum Wiring
What does it really mean?
• Very common in many houses in Canada• Safe if connections are done properly• Can be a minor insurance obstacle• Will need inspection/updating
76
Aluminum Wiring
What does it cost?
• $600 - $1200 for a thorough inspection.• $500 - $1500 to improve connections.
77
Aluminum Wiring
What should we do about it? • Check insurance requirements• Have Electrician inspect and update as required• Possibly inspected by ESA
78
Aluminum Wiring
Vermiculite Insulation
79
Description • Loose fill insulation used up until the 1980s• May contain small amounts of asbestos
80
Vermiculite Insulation
81
Vermiculite Insulation
82
Vermiculite Insulation
What do home buyers think it means? • The home is a health risk• Will affect property value
83
Vermiculite Insulation
What does it really mean? • Nothing, for most homeowners• If you are going to be working in the attic, you should
take precautions, like wearing a mask
84
Vermiculite Insulation
What does it cost? • Nothing if left alone• Removal (asbestos abatement) costs thousands of
dollars
85
Vermiculite Insulation
What do we tell clients? • Leave it alone• Get it tested for asbestos content if it is a concern to
the buyer• Most older homes have some hazardous materials• There is no evidence of health risk if it is not exposed
86
Vermiculite Insulation
Vermiculite
“..there is currently no evidence of risk to your health if the insulation is…isolated in an attic…”
87
Summary
• Keeping things in perspective helps everyone.• Presenting solutions makes the difference.
If it’s Run-of-the-Mill,
don’t Run for the Hills!
88
89
Thank you!