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Run of the Mill or Run for the Hills? Understanding Common House Conditions Presented By: Alan Carson and Andy Tran Carson, Dunlop & Associates Ltd. Carson,

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Presentation on theme: "Run of the Mill or Run for the Hills? Understanding Common House Conditions Presented By: Alan Carson and Andy Tran Carson, Dunlop & Associates Ltd. Carson,"— Presentation transcript:

1 Run of the Mill or Run for the Hills? Understanding Common House Conditions Presented By: Alan Carson and Andy Tran Carson, Dunlop & Associates Ltd. Carson, Dunlop & Associates Ltd. is solely responsible for the content of the material used in this seminar. © 2012

2 8 Common Issues 1.Wet basements 2.Old roofs or leaky roofs 3.Old furnaces and boilers 4.Old air conditioners 5.Knob-and-Tube wiring 6.60-Amp electrical service 7.Aluminum wiring 8.Vermiculite insulation 2

3 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 4 Wet Basements

5 5

6 6

7 7

8 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

9 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

10 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

11 Any chance the basement will be wet here?

12 12 Wet Basements

13 13 Wet Basements

14 14

15 Cleaning the gutters often cures the wet basement! 15

16 Sometimes we need to fix them!

17 Wet Basements 17

18 Wet Basements 18

19 Wet Basements 19

20 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

21 Old Roofs or Leaky Roofs 21

22 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 23 Old Roofs or Leaky Roofs

24 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

25 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

26 Worn out Roof 20-year old shingles 26

27 Really Worn out Roof! 27

28 Minor Roof Leak Can you guess where this roof may leak? 28

29 Flashing Leak 29

30 30 Flashing Leak

31 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

32 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 33 Old Furnaces and Boilers

34 34 Old Furnaces and Boilers

35 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

36 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

37 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 38 Old Furnaces and Boilers

39 39 Old Furnaces and Boilers

40 40 Old Furnaces and Boilers

41 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

42 What do we say to clients? Determine first if its repair or replace Furnaces and boilers have a life cycle Lifespan can be years 42 Old Furnaces and Boilers

43 Old Air Conditioners 43

44 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

45 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

46 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 47 Old Air Conditioners

48 48 Old Air Conditioners

49 What does it cost? Repairs costs are typically inexpensive Compressor replacement can be over $2000 A new air conditioner is typically $3000 to $ Old Air Conditioners

50 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

51 Knob-and-Tube Wiring 51

52 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 53 Knob-and-Tube Wiring

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56 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

57 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 58 Knob-and-Tube Wiring

59 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

60 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

61 60 Amp Electrical Service 61

62 62 60 Amp Electrical Service

63 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 Amp Electrical Service

64 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 Amp Electrical Service

65 What does it really mean? It doesnt 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 Amp Electrical Service

66 66 60 Amp Electrical Service

67 What does it cost? $1000-$2000 to upgrade to 100 amps Often included with other improvements Amp Electrical Service

68 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 Amp Electrical Service

69 Aluminum Wiring Description Commonly used from mid-60s to late-70s 69

70 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

71 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 72 Aluminum Wiring

73 73 Aluminum Wiring

74 74 Aluminum Wiring

75 What do home buyers think it means? Inferior quality home Unsafe wiring Cannot get insurance 75 Aluminum Wiring

76 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

77 What does it cost? $600 - $1200 for a thorough inspection. $500 - $1500 to improve connections. 77 Aluminum Wiring

78 What should we do about it? Check insurance requirements Have Electrician inspect and update as required Possibly inspected by ESA 78 Aluminum Wiring

79 Vermiculite Insulation 79

80 Description Loose fill insulation used up until the 1980s May contain small amounts of asbestos 80 Vermiculite Insulation

81 81 Vermiculite Insulation

82 82 Vermiculite Insulation

83 What do home buyers think it means? The home is a health risk Will affect property value 83 Vermiculite Insulation

84 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

85 What does it cost? Nothing if left alone Removal (asbestos abatement) costs thousands of dollars 85 Vermiculite Insulation

86 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

87 Vermiculite..there is currently no evidence of risk to your health if the insulation is…isolated in an attic… 87

88 Summary Keeping things in perspective helps everyone. Presenting solutions makes the difference. If its Run-of-the-Mill, dont Run for the Hills! 88

89 89 Thank you!


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