I get this question a lot from friends, investors and clients. It’s a great question and I surprisingly haven’t seen a ton written about it online. Especially referring to Utah specifically. Each state has certain things to look out for since the landscapes and risks can vary drastically.
I thought it would be nice to give you my personal checklist that I use whenever Muve Real Estate personally buys a home in Utah. This post will only include a brief checklist but I will be doing a series of posts that will talk about each and every item in depth so that you can educate yourself properly.
So here it is in no particular order:
- Zoning Use – Make sure the home you are buying is zoned for what you intend to use it for. Contact the city or county building that the home is located in. Estimated Cost – Free.
- Well Inspection – Only a small number of homes in Utah have wells but if you are buying a home that has one and uses it for primary water supply you will want to get it tested to make sure the water is drinkable. Estimated Cost – $150 – $250.
- Appraisal – If you are getting a loan or mortgage on your property the lender will require this. If you are paying cash you won’t be required but it is still highly recommended. We use Marty Bodell with Bodell Appraisers http://bodell.com/. Estimated Cost – $300-$500.
- Foundation Inspection – Again, not every home will need this but if you see multiple cracks in drywall, exterior foundation, or bulging concrete walls in the basement then you will want to anti up and get this checked out. Foundation issues can vary from easy to fix up to being a deal breaker. We use Lynn Draper 801-792-4119. Estimated Cost -$150-$300.
- Main Sewer Line Scope – This is a biggie that a lot of people miss. With how old homes are in Utah and the amount of mature trees in many older areas, we won’t buy a home without getting a camera in the sewer line to check its condition. Just because it flushes and is clear now doesn’t mean it will be in a month or two. We use Cliff Isaacs with Roto Rooter 801-972-2828. Estimated Cost – $150-200.
- Property Inspection – This is the most basic thing you will want to get on a home every single time. This is someone going through a home and inspecting as much of it as possible. Inspectors aren’t required to be licensed in the state of Utah so make sure you get a good inspector. Not all inspectors are created equal. Contact us if you need a good one. We use John Brigance with Hidden Valley Inspections, http://www.genbook.com/bookings/slot/reservation/30087338. Estimated Cost – $300-$600.
- Roof Inspection – Although the general inspection may note if the roof looks good or not, inspectors are not usually proficient enough to give you a very good idea on the life of the roof and if it was installed correctly. We always get our roofing contractor to take a quick look at our houses to make sure the roof is in good condition. The roof replacement can be a huge expense if it needs to be replaced. We use Mike Bay 801-870-9744. Estimated Cost – Free
- Meth Test – This has been covered in the media a ton lately! It’s a big issue but you’ll want to read my full post on it to learn every in and out about this nasty drug and how it can effect your home. These tests are so cheap that I recommend everyone to test the home that you are planning on buying. How and where you test are two important issues I will talk about in my full-length post. For testing kits visit ALS Labs http://www.alsglobal.com/. Estimated Cost – $100-$150
- Square Footage Measurement – Most of the time this will be included in an appraisal but if you are paying cash you will definitely want to get the house measured. I can’t tell you how many times the county records are inaccurate with the size of a home. Since most listings are based off the tax records that means many of the listings are inaccurate as well. Square footage is such a big factor when valuing a home so make sure you get it verified and get an accurate measurement! We use Marty Bodell with Bodell Appraisers http://bodell.com/. Estimate Cost – $50-$100 or free with an appraisal.
- Home Back Ground Check – This is a simple and easy thing to do. It’s not something we do often unless the home is in a sketchy neighborhood. All you do is call local authorities that patrol the neighborhood and see if they have record of any criminal activity in the home. Depending on the severity of the history on the home may make you reconsider going through with a purchase. Estimated Cost – Free
- FHA Approved Condo – This only applies for condo’s. For lending purposes there are certain rules that condo and townhome complexes must abide by. If the complex is not in compliance with these rules then FHA won’t loan to a buyer for that complex. Rules are things such as owner occupant ratios and reserve funds in the HOA. These will be issues that can affect you buying the home and if you are selling as well. To check if a complex is FHA and HUD approved visit this site https://entp.hud.gov/idapp/html/condlook.cfm. Estimate Cost – Free
- Radon Test – Radon is a cancer causing, radioactive gas. It is invisible and odorless. To be safe you should test for it. We don’t test for this on every single home but do it a majority of the time. If the home tests positive, it can be remedied fairly inexpensively in most cases. In my in depth post I will talk about local issue with radon. Thoread more about radon got to http://www.epa.gov/radon/
- Mold Test – Most people know what mold is. Mold is everywhere and naturally occurs in nature. Too much mold and certain kinds of mold can be a hazard to your health, especially in confined spaces aka a home. Most of the time you can see signs of mold. If you see any signs then you should definitely get a test done to see if there are irregular levels in the home. If we personally don’t see any visual mold then we don’t bother with it, but that’s because we are usually gutting a home anyways. For more information about mold visit http://www.epa.gov/mold/moldguide.html
- Title – Hopefully you are using a title company. We never do a deal without one but you will want to make sure you are using a title company so that you can ensure you are getting clear title to a property. Also get title insurance on every property, no matter what. We use Bonneville Superior Title 801-365-0990.
- Other – Other items you can look into but we usually don’t bother with unless it is an extreme case are Sex Offenders List, Rental Use, Survey and Staking, Flood Zone & Insurance, Utility Service, Geologic Conditions, Housing Compliance, Property Taxes, and Tax & Legal Consequences.
This is a pretty comprehensive list but every item on the list is important when buying a home. A home will most likely be the most expensive thing you will ever buy so you should do everything possible to make sure that you are making a smart purchase and good investment. Please look for future posts that will talk in depth about each of these items. Also, feel free to contact me if you ever need any further clarification on any due diligence items.
