Both expensive and inexpensive buildings exhibit problems. I’ll work with anybody who wants to “get at the truth”. That’s what we do at Tomacor. We try our best to identify the most significant life safety issues that will impact both the home’s livability and it’s value. We don’t find everything. After all, it is a visual inspection and it’s never perfect.

After twenty eight years in the business of inspecting home purchases, I have some stories to share, of the terrific as well as the horrific. Some of the ones below reveal the cost of not being prepared, not being savvy, when you enter into the real estate market as a buyer. And most people are not, because they don’t buy new homes every year.

As a way to educate consumers and bring life back to the real estate market, Tomacor has decided to take these stories to you. Stories like the one client who bought a farm in the Rockford area and hired an inspector who turned out to be the real estate agent’s son. Ten days after closing, after having lost several nights of congested sleep, she discovered that her attic was full of mold. Apparently, the inspector hadn’t looked up into the attic. She removed the entire roof structure and rebuilt it.

Another client moved into a house in the Bridgeport neighborhood of Chicago, after hiring another inspector recommended by his agent. The buyer wasn’t present at his inspection, but a large colony of termites was. After the buyers bought and had to strip the building, it became apparent these termites had been active for more than twenty five years. Even the roof rafters were sagging and cracking with the termite damage.

Then there’s the client who moved into a new condominium in Chicago. It didn’t have an electric meter. The common areas were eventually turned over and a Condo Board was created. Still no meter. The developer was able to pass on the ownership of the common area (and its outstanding electrical invoice) to the new owners. The Board and the unit owners had to pay the general contractor’s electric bill. Most buyers were ignorant of the fact that these folks paid for months of electrical usage which should have been paid by the developer.

Finally, a condo owner contacted me two years after his purchase of a new north side condominium complex. No masonry flashings were in place and water had migrated through exterior walls and onto his floor. The Brazilian cherry wood flooring was ruined. Black mold was present along many of the exterior walls in his unit. Sam, not his real name, went to the doctor and found out he had a fungal infection in his lungs. He began to cough up blood. If this wasn’t bad enough, his wife was five months pregnant. They moved in with family and the condo went back to the bank.
Each of these problems was resolved in a different way. Sometimes through legal action, sometimes through paying out big dollars in repair costs.

Do you have a real estate story that would benefit others if shared? Do you know someone else who would like to benefit others by sharing their story? Some of you may even have stories about the crazy things that happened to you when you were selling. We’ll take them. We don’t have any prizes or giveaways. Tomacor’s focus in this process is recruiting people with informative stories that can educate all of us and help restore the integrity to the real estate buying process.

We’re in a recession that has seriously impacted the value of real estate; poor construction detailing resulting in serious deficiencies has devalued our real estate investments as much or more than the mortgage crisis. It seems to me a relevant question for us to ask is: “How did we get here?” and “How do we get out ?” Tomacor is committed to helping develop a new real estate paradigm. We’re hoping to lift the standards of the home inspection industry, by making thorough inspections and accurate, transparent disclosures of building condition the norm.

“In real estate what you don’t know will cost you plenty!”
This has been Tomacor’s motto for the last 28 years. You as consumers can help this become the industry-wide standard by insisting on a tough, thorough, independent home inspection industry and a well-educated home-buying public interested in homes – not just as good investments, but as places to safely raise their families. Thanks in advance for your collaboration!
Tom Corbett
The Home Reckoner©

A west side real estate company bought FHA repossessed property, then lent down payment money to unsuspecting consumers who bought these properties at above market prices thinking they were “rehabbed”, when they were only cosmetically altered. As the properties fell down, literally, around their ears, the unsuspecting buyers were forced into foreclosure. This scam was run hundreds of times costing millions of dollars. Real estate agents received their commission on the sale and profit from the “rehab” – the rehab that never took place.

Home inspection has become common practice in Illinois with most real estate agents recommending it. Specific areas in the city with few inspections include the west and south sides where some consumers struggle to afford the extra $300-$500 for a quality inspection. Some are openly discouraged by sellers and their representatives from getting a home inspection. Conflicted home inspectors referred by crooked agents can never identify problems. Their money comes from the real estate agent referral process.

Having said all that, Tomacor encourages people who buy residential real estate today to just be careful. The prices are cheap, and the mortgages cheaper – but what’s the condition?

Buyers should memorize the phrase “caveat emptor”. Nowhere in the marketplace can you lose your shirt as fast as in real estate. Nowhere does the consumer, often times your Average Joe or Jill, need more protection than in the real estate market. If you’re buying real estate, you must protect yourself by hiring independent inspectors, attorneys, mortgage brokers and real estate agents. Professional real estate attorneys and independent home inspectors can provide you with budgets for repairs and help you negotiate the real estate purchasing pitfalls even if they come at you at 100 mph.

http://www.huffingtonpost.com/2011/11/30/housing-market-remains-stuck-first-time-buyers_n_1120891.html

Having read Mr. Kravitz’s column, I think he misses the mark. Accountability is needed in the housing market. The housing market isn’t down due to the mortgage qualification standards or our bad credit rating or even student loans. It’s down because the whole process has stopped representing the buyer and shifted to “the deal at any cost.” The question is do you want to buy a house now that could literally blow up on you (A problem that happened yesterday in the city of Chicago) or fall apart. Add to this buyer’s concerns about mortgage failure, hanky pankey and their attorney who happen to be the seller’s brother. For your average, relatively sophisticated buyer, there is no place to step without the potential for the “booby prize.” This could cost him/her $50,000 in mold abatement or structural repairs. Now-a-days, even the inspectors are lined up behind the agents selling their loyalty for a referral. Can you blame buyers?

We must restore the market and guarantee that buyer’s representatives serve the buyers. They need attorneys who advocate, appraisers that are fair, mortgage brokers who work for clients best interests and inspectors who include budget figures and environmental hazards as part of their routine service.

The inspectors hold the key to their restoration Without a good inspection, everything can implode and cost your son or daughter a life’s savings.

“Condition not location.”

–Tom Corbett

On Tuesday, Tom Corbett will discuss employment and opportunities that are available currently in the industry. Banks own foreclosed properties that need inspections. Contracting work is given to those contractors with inspection licensing before others, condominium boards need consulting help, and expert witness work is available due to all the shoddy construction.

Whether these employment opportunities appeal to you or not, they are out there and you can earn a living using your construction background in a new way. If you want to earn an extra $20,000 – $40,000 in 2012, now is the time to take action. Tomacor will help you or your friends find employment and a satisfying career in the construction industry. There is a catch.

You have to come to our open house on December 06, 2011 at 7:00pm. Contact us to reserve a place or if you have any questions about the course or future open house dates. You can call us at 312-475-0835 or e-mail us at mpickett@tomacor.com

Can you or someone you know recognize the sound of a faulty furnace during its operation? Are you able to recognize structural cracks in foundation walls? Do you know how to check the operation of double hung windows? Do you find it easy to predict the life expectancy of a 25 year old asphalt shingled roof that’s curled? If you can answer these questions you are on the road to becoming a successful building inspector. You can develop the skills for court room work. You can help condominium associations thousands of dollars. You can help building and home buyers anticipate the replacement of a flat or shingled roof. And you will be paid handsomely but you must take action. Come to the Open House at 7:00pm, but reserve a place first.

It was clear from the materials used that the remodeling was recent. It was also clear by looking at the listing sheet provided by the real estate company that the remodeled basement in question was included in the overall square footage and description of the property. The seller was selling the property with two additional bedrooms in the basement that were of substandard quality and without City approval. They also were not safe. The remodeled basement added an additional 1,000 square feet to the overall space of the home. At $200 per square foot, the seller stood to gain $200,000 from a hazardous non-permitted space which turned out to be full of significant deficiencies and hazardous conditions.

The huge pain in the ass for the buyer is that once they take possession of the property, buyers are responsible for it and all of the City Code violations. Buyers are responsible for the blueprint, needed permits and any fines the City chooses to hit them with. At some point, the new homeowner will become aware that they purchased a home that is hazardous and unsafe in the remodeled areas and they will also become aware of their obligation to the municipality to make their home code compliant if the municipality thinks it is important to demand it. This nightmare could collapse on the home buyer due to a simple complaint by a neighbor who is overly zealous and unhappy and who chooses to call the City to get even with the old homeowner. Tomacor has seen this happen in situations that are as silly as a homeowner failing to clean dog waste on a neighbor’s yard. The result could be 6 months of bureaucratic wrangling and tens of thousands of dollars in fines, architectural drawings, permit fees and repairs to substandard remodeling work. This style of “sleight of hand” by the seller may land him/her in the middle of a lawsuit.
Proactive consumers will contact the municipality to determine if there are outstanding building code violations or records for construction permits filed on the property they are planning to purchase. While checking the city records, look to see if the property has ever caught fire. After all, it is your money. Spend it wisely.

Why not make it a state law to require sellers to disclose to home buyers whether they have any knowledge or evidence of non-permitted remodeling work or repair work which has occurred under their watch. Thanks for your time.

Tom Corbett
“Restoring integrity to the real estate purchase process, one building at a time”

On Monday, Tom Corbett will discuss employment and opportunities that are available currently in the industry. Banks own foreclosed properties that need inspections. Contracting work is given to those contractors with inspection licensing before others, condominium boards needs consulting help, and expert witness work is available due to all the spotty construction.

Whether these employment opportunities appeal to you or not, they are out there and you can earn a living using your construction background in a new way. If you want to earn an extra $20,000 – $40,000 in 2012, now is the time to take action. Tomacor will help you or your friends find employment and a satisfying career in the construction industry. There is a catch.

You have to come to our open house on November 21 at 7:00pm. You must call to reserve a place; our number is 312-475-0835.

Can you or someone you know recognize the sound of a faulty furnace doing its operation? Are you able to recognize structural cracks in foundation walls? Do you know how to check the operation of double hung windows? Do you find it easy to predict the life expectancy of a 25 year old ash fault shingled roof that’s curled? If you can answer these questions you are on the road to become a successful building inspector. You can develop the skills for court room work. You can help condominium associations thousands of dollars. You can help building and home buyers anticipate the replace of a flat or shingled roof. And you will be paid handsome but you must take action. Come to the Open House at 7:00pm, but reserve a place first.

I arrived on time to inspect a new town home and I didn’t even bother to bring my ladder into the building because I was convinced the agents would tell me that there was no access to the roof. Yes, I became set in my ways and will probably become a full fledged curmudgeon before long. The sellers had a couple of kids yet the place was immaculate. This set the stage for a very positive experience for the home inspector. Before long, I had completed the exterior inspection and began to inspect the kitchen when the selling agent came up to me and said, “Would you like to see the roof now?” I was floored. I have never met an agent who encouraged me to inspect a common roof until this day. The roof turned out to be in pretty good shape which was good for everyone.

Kim Barnett was all about service. She works for a local company called @Properties and she must be one of their best agents. I was shown the roof and other common areas of the property without fan fare or agenda. Kim had taken off her shoes so as to not damage or soil the carpet and I followed her to the neighbor’s house where we climbed the stairs and she inspected the roof barefoot with me. She was cordial, polite, friendly, upbeat, and just down right engaging. What a breath of fresh air.

I’m sure some cultures make All Saints Day or Trick and Treat day last a whole week. Why not? A week long party with sweets and dancing sounds great. Right.

Somewhere after a month or so the stomach aches and the hangovers would be too much and the normal course of affairs would be desired over the fun.

This year marks the fourth year of Trick or Treat celebrations offered by bankers and short sale specialists in the housing industry and it is time for a change.

Here’s the doom and gloom for the Halloween part:

• Short sales still require a seller’s disclosure form with a list of 23 questions of known problems in a home. Don’t proceed without one.

• If you don’t shop for a “buyer’s inspector” you will get one who wants the agent’s referrals even if they never met you or the agent. Good inspectors quote the budgets for every deficiency. Don’t get anything less.

• Location is no longer the top criterion for purchasing real estate; condition is. What’s it going to cost to fix up the place?

• Ethics and business relationships are not being disclosed up front and conflicts of interest abound. Agents hand-pick their most ignorant inspectors, flexible mortgage brokers and related appraisers. If your attorney is on a “flat fee” cost and was referred by your agent he/she could be part of the agent “network”.

60-80% of all home inspections come from agents. If the average price of a home in Chicago is $200,000 someone is getting $12,000 to sell it. You can get a lot done with that kind of influence. Avoid agent referrals. Find an inspector that quotes budgets for repairs. He or she won’t be tied into the real estate agents.

• Consider the internet. It is growing by leaps and bounds. Search Zillow, and other sites for sales and comparable. Make an offer. You should save $20,000.

Hey, “Trick or Treat” is fun even if you don’t have a costume. But let’s stop it already. It’s time to replace this slogan with “Treat or Treat”, good for both of us. Trick or treat will never go away but after years of it the fun of it in real estate, and the great stories become common place. “Treat or Treat” meets the goal better.

The good news is that property is cheaper than ever for the qualified. We should all be buying houses if they are available for half price or so from four years ago. A few examples:
• A 4 bedroom brick bungalow on the southwest side which is 90 years old and occupied: $50,000
• A two flat near Lawrence and Albany without short sale status: $180,000
• Condos in the city are many locations for $100,000 or less. Check with your agent, if you have one, or the internet.

Each year, I meet 3-5 clients who are buying who have done their own sales search. They drive through neighborhoods and distribute cards that say, “We want to move into your neighborhood with our family. Are you interested in selling?” Each found what they wanted.