Home purchase questions - PeachParts Mercedes-Benz Forum

MS Fowler · #1 02-10-2012, 06:02 PM

My son is buying a house and just got his Home Inspection Report. He called me with some questions, but I am no longer current on prices of stuff, so I thought I’d run his questions past you all here.
In real estate LOCATION is important, so you need to know the house is in West Chester, (suburban Phil.) , PA. House is about 1800 SF and built about 1980.

1. Oil fired furnace. The report noted that it had not been serviced for 5 years. IIRC, service is a routine, annual maintenance item. So I believe this is more of a point of information than an important item. What does the annual service generally cost?
2. Air Conditioning. Report says that the inside and outside units are near the end of their expected life. Any idea of cost range for replacing the A/C?
3. Radon Report was about 12. I told him to vent the basement, and not worry about it—they plan not to use the basement for much of anything.
4. Electrical Panel is 20 breaker 100 AMP with 24 breakers in it. Since they plan no additions, my opinion is that its OK.
5. Home Warranty Any idea what a year might cost to cover the systems listed above. He hopes seller will pay for it.
Thanks for any help.

tbomachines · #2 02-10-2012, 06:11 PM

Can't help on the questions but congrats/good luck to your son. West chester is a nice little city and looks to be up-and-coming in terms of downtown development. 3 of my friends bought houses there in the past year.

kerry · #3 02-10-2012, 06:19 PM

I'm guessing a couple of hundred for the annual service and maybe $5k for a complete replacement of the AC system. None of those things seem significant to me. AC could last for years longer. It sounds like the inspector is just predicting based on typical life span, not on actual current condition.

ah-kay · #4 02-10-2012, 06:38 PM

Quote:

Originally Posted by MS Fowler

My son is buying a house and just got his Home Inspection Report. He called me with some questions, but I am no longer current on prices of stuff, so I thought I’d run his questions past you all here.
In real estate LOCATION is important, so you need to know the house is in West Chester, (suburban Phil.) , PA. House is about 1800 SF and built about 1980.

1. Oil fired furnace. The report noted that it had not been serviced for 5 years. IIRC, service is a routine, annual maintenance item. So I believe this is more of a point of information than an important item. What does the annual service generally cost?
2. Air Conditioning. Report says that the inside and outside units are near the end of their expected life. Any idea of cost range for replacing the A/C?
3. Radon Report was about 12. I told him to vent the basement, and not worry about it—they plan not to use the basement for much of anything.
4. Electrical Panel is 20 breaker 100 AMP with 24 breakers in it. Since they plan no additions, my opinion is that its OK.
5. Home Warranty Any idea what a year might cost to cover the systems listed above. He hopes seller will pay for it.
Thanks for any help.

I use the report to negotiate price break from the seller and I then fix it myself.

1) If the furnace is used regularly then I would leave it. Clean the filter and use a vacuum to suck any debris. Annual checkup to me is a scam.

2) A/C - who can predict the future? A outside unit plus the cooling coil is about 5-7K, it all depends on the tonnage. 3 ton is enough for 1800SF. Do not do it because of 'Energy Saving' feature. It will take forever to recoup your capital investment.

3) Randon - Do not really matter IMO.

4) Probably is OK if it is to code.

5) Home warranty insurance for the 1st year is always scam-ish. If the seller pays for it then it is fine. If not, go for it if it is not too expensive. However, look at the small print and exclusions.

Congrats.

Brian Carlton · #5 02-10-2012, 06:48 PM

Quote:

Originally Posted by MS Fowler

My son is buying a house and just got his Home Inspection Report. He called me with some questions, but I am no longer current on prices of stuff, so I thought I’d run his questions past you all here.
In real estate LOCATION is important, so you need to know the house is in West Chester, (suburban Phil.) , PA. House is about 1800 SF and built about 1980.

1. Oil fired furnace. The report noted that it had not been serviced for 5 years. IIRC, service is a routine, annual maintenance item. So I believe this is more of a point of information than an important item. What does the annual service generally cost?
2. Air Conditioning. Report says that the inside and outside units are near the end of their expected life. Any idea of cost range for replacing the A/C?
3. Radon Report was about 12. I told him to vent the basement, and not worry about it—they plan not to use the basement for much of anything.
4. Electrical Panel is 20 breaker 100 AMP with 24 breakers in it. Since they plan no additions, my opinion is that its OK.
5. Home Warranty Any idea what a year might cost to cover the systems listed above. He hopes seller will pay for it.
Thanks for any help.

1. Annual "service" includes vacuuming of the combustion chamber and thoroughly cleaning the heat exchanger. Generally, it's not done properly as the servicing company is usually the oil company. They also change the filter and the nozzle and adjust the electrodes and the draft if necessary. Should take a solid hour to do the proper job............none of them are any good at it anymore.

The servicing is usually part of the contract to maintain the boiler during the year and come out when the owner calls with "OMFG, I have NO HEAT!!"

2) As AK noted, it'll be 5K -7K if a contractor does it. It's less than half that amount if you do it and have them evac and charge.

3) No opinion.

4) It's fine unless the family adds many high wattage appliances and computers and televisions and lighting and heavy central a/c while the electric dryer and the electric stove are running simultaneously.

5) Forget the home warranty. There are so many loopholes in such a contract that you'd never get them to pay a dime. Another scam to prey on those that must fork over money for a false sense of security.

Aquaticedge · #6 02-10-2012, 07:16 PM

Our AC replacement on our house 3 years ago was 7-8K with the Air handler and outside unit. I forget the exact amt

The Clk Man · #7 02-10-2012, 07:18 PM

100 amp service sounds a little weak to me.

Also, tell him to do a 15 year mortgage the monthly payment isn't as bad as you think. He will save $100,000 + in interest over the life of the mortgage.

jplinville · #8 02-10-2012, 07:25 PM

I'd replace the oil system with a gas forced air system, then add central air. Fuel oil prices are still going up, and natural gas is low. Price would be between $5-$10k, depending on unit and install pricing...that is the price I was quoted for my house, which is equal in square footage.

Hatterasguy · #9 02-10-2012, 08:02 PM

If their is gas in the road ditch the oil.

Radon isn't a big deal install a radon system.

AC, replace it when it breaks, don't know what it should cost to many variables.

Home warranty's are scams.

Graplr · #10 02-10-2012, 08:42 PM

Quote:

Originally Posted by Hatterasguy

Home warranty's are scams.

I don't know if I'd go that far. They are a good marketing tool for the seller of the home. It only costs them ~$450 paid at closing and they are covered the instant they list their house (having paid nothing). I've personally seen 5 claims repaired since the new year began at my company. Definitely ask for the seller to cover the warranty. It can at a minimum be a point of negotiation when you "give it up". It makes the other side seem like they won something.

There is a small tax credit on AC systems of a certain rating right now. But ditto to above, don't replace it until necessary. I would expect closer to the 7k+ range than 5k.

As far as oil furnace service, I paid about $250 1.5 years ago for mine. But mine is an oil boiler. I have since relegated it to back up service as we installed geothermal this past summer.

If those are the only concerns that came back on the inspection I'd be okay with it. Unless you feel the need for more power. 100 amps is on the lowish side and I would probably want higher but if the house is only 1800 sqft they should be okay.

kerry · #11 02-10-2012, 08:46 PM

Can you say more about the geothermal?

The Clk Man · #12 02-10-2012, 08:47 PM

The home warranty sealed the deal when I sold my house in Fla. in 1997. They are worth the money to the seller.

Graplr · #13 02-10-2012, 08:48 PM

Quote:

Originally Posted by kerry

Can you say more about the geothermal?

Perhaps in another thread. Probably not appropriate to steal his thread.

Graplr · #14 02-10-2012, 08:50 PM

Quote:

Originally Posted by The Clk Man

The home warranty sealed the deal when I sold my house in Fla. in 1997. They are worth the money to the seller.

It makes the buyer feel more comfortable. It should be a no-brainer to sellers, especially when the market is tipped towards the buyer (actually in Minnesota we are now slightly in a balanced market believe it or not) as it makes their home stand out more.

The Clk Man · #15 02-10-2012, 08:53 PM

Quote:

Originally Posted by Graplr

It makes the buyer feel more comfortable. It should be a no-brainer to sellers, especially when the market is tipped towards the buyer (actually in Minnesota we are now slightly in a balanced market believe it or not) as it makes their home stand out more.

Agreed, I think I paid $400 for the warranty and it was money well spent.