I know buying a house can be expensive. And it is perfectly understandable to make the best possible effort to attempt to minimize cost and utilize your hard earned dollars effectively. As a Realtor, I am often asked a very important question – “Do I really need a termite and home inspection?”

If you only get one thing out of this article, get this – the answer is “YES!”

Couple of quick facts.

• Georgia is ranked 5th for termite population and we are directly north of the state ranked #1 (Florida).
• It is not unlikely that the home you have chosen will have some sort of termite damage.
• Many homes on the market do not receive adequate termite prevention, treatment, or repair.
• Not all sellers will tell the truth, or even know, all the termite and structural facts about their home.
• Not all inspection/pest treatment services are the same.

The current 2007 Georgia Purchase and Sale contracts have changed significantly since last year in this area.

• Sellers are no longer required to provide a termite letter at closing. It is solely the responsibility of the buyer. This was done in an effort to allow buyers the opportunity to choose their own provider. It is thought that buyers will be more likely to choose quality service that they are comfortable with so that they can be assured of the findings. (Note: VA Loan sales still insist that the Seller be responsible for the termite letter. The Buyer may not pay for the service.)
• The “right to request repairs” clause defines the person of “Inspector” and what can be considered a “defect.” This is important for buyers when selecting an inspector and deciding what course of action to take about his findings.

There are major differences between termite guys and home inspector guys.

• Most home inspectors are NOT authorized to complete a Georgia Wood Infestation Report. They do not have the specific training to recognize all signs of termite/pest infestations.
• Most termite guys are NOT home inspectors. They do not check structural soundness, roof damage, appliance operation, electrical operation, plumbing, heating and air, or a variety of other things on an inspectors checklist.

For most people. the purchase of a home is the single biggest investment they will ever make. It is important to know the answers to some key questions.

• Is the home covered by a termite or pest control company? What is the nature of that contract? Is it transferable? What does it NOT cover? Is it retreat and repair or just retreat?
• Has there ever been, or is there now, an active infestation? What are the results?
• Is the home structurally sound? Does the plumbing, electric, heating and air function properly? Does the roof leak? Is there any evidence of previous water damage?

Don’t assume that if there was something wrong with the house, you would know. The current owner may not even be aware of the problem. Unfortunately, is some cases, they wouldn’t tell you even if they did. Be responsible for your own inspections. This way you will know the reputation of the professional providing the service. Who pays for it can be a part of negotiations, but make sure you know and approve of who does the work.

If you decide to start minimizing costs, you should think twice about this being the appropriate area in which to do it.

Note: Special thanks to Garry Adams of Northwest Exterminating for conducting the best “Bugs and Byers” class ever! You can contact Barry for more information about your home or your future home.

Tony Gallegos wrote a wonderful article supporting the idea that, yes, you too can still buy a house.

“But, I will never qualify for a mortgage!” I hear this all the time when talking to people who do not own homes. They are paying rent in an apartment they hate or living in a house that is someone else’s home, paying their mortgage.

They would love to have their own walls, yard, space, but they think it is impossible. Now, sub prime lender blow ups and talk of housing bubble bursts are popping more than just economics – it is popping dreams.

To this I say, “Just try it on!” There are tons of mortgages still being approved. In fact, the stricter rules will be better for the consumer in the long run. Tightening the rules keeps a handle on the interest rates. It also helps home buyers from falling into the all too often trap of buying more house than they can afford.

I was talking to a friend of mine the other day. She and her husband are considering going into real estate investment. She has me scouting out properties for her, discussing the what ifs, and developing strategy. During this conversation, she expressed an interest in properties with high DOMs and if I thought that was a good idea. I thought this was a good question for all prospective home buyers.

First, what is DOM? This acronym stands for “days on the market” and refers to the length of time a home has been on the market. However, because it is generated by the current agent listing date, it does not typically account for homes that have been previously on the market as for sale by owners or with another agent.

Next, the short answer. No. I do not think that high DOM should be your starting point. There are far more important attributes of a home to consider than how long it has been for sale. For starters, it is even a home you want?

But, April, for people looking to get a good deal, owners that have been waiting forever to sell their property should be ripe for the picking, right?

No. There are numerous reasons that can contribute to the DOM. Not all are favorable to the investor or typical owner occupant home buyer. Some a moot points to everybody.

• The property isn’t really for sale. I know this sounds odd, but some listed properties aren’t. Some property owners will set a price on their home and just “wait and see.” They aren’t interested in negotiations or working with the buyer. If somebody just happens by and must have this particular house and will meet all the seller’s demands to get it, then they will sell. But not before. You can included properties that are over priced in this category.
• Some marketing strategies don’t work. An agent lists a home and fails to effectively market the property, or at all. Therefore, the home, a good value as it may or may not be, didn’t even have a fighting chance.
• There is a characteristic about the property. You find this a lot in older homes. Some folks just can’t get past the age of the house, the fact it has septic and deep well, the carpet is tattered, the roof is old…whatever. These might be a perfect property of the investor or a good do it yourselfer, but these matches sometimes take a little longer to make.

Obviously this list is not all inclusive, but it is the top three that I see.

So, the moral of the story is, who cares how long the home has been on the market? This fact may come into play as you learn more about the circumstances of a property, but not before. The definition of “a deal” is going to be individual specific and not hinge on how long a property has been for sale.