Courtesy
of
Freddie
Mac
Step
3
Final
Analysis
Once
you've
completed
your
consumer
home
inspection,
analyze
your
findings
to
identify
the
positive
and
negative
features
of
the
home.
Then
decide
how
to
fit
them
into
your
analysis.
Pay
special
attention
to
the
quality
of
the
home's
construction,
the
level
of
maintenance,
the
quality
of
individual
parts,
replacement
cycles
and
any
remodeling
or
other
improvements
that
have
been
made.
Consider
whether
a
home
is
especially
wellbuilt
and
decide
which
factors
are
most
important
to
you.
If
a
home
has
been
well-maintained,
it
can
command
a
price
much
higher
than
the
same
home
with
fair
to
poor
maintenance.
On
the
other
hand,
homes
with
poor
maintenance
can
be
bought
at
favorable
prices.
The
quality
of
individual
parts
of
a
home
is
also
important
and
may
not
be
what
you
expect.
For
example,
a
big,
old
home
with
modest
construction
features
might
have
a
high
quality
remodeled
kitchen
or
a
home
with
original
casement
windows
may
have
upgraded
to
new,
insulated
glass
replacement
windows.
A
sound
home
will
last
indefinitely,
but
its
integral
parts
will
need
replacing
on
fairly
regular
cycles.
You
should
know
the
replacement
cycles
for
these
parts
and
be
able
to
recognize
where
they
are
in
their
estimated
life
cycle.
Hot
water
heaters,
for
example,
normally
last
about
eight
to
12
years.
If
you're
looking
at
a
10-year-old
home
with
the
original
hot
water
heater,
the
unit
probably
will
need
to
be
replaced
soon.
For
a
list
of
replacement
cycles,
turn
to
the
Schedule
of
Normal
Life
exhibit
in
this
handbook.
It's
important
for
you
to
be
aware
of
any
remodeling
or
improvements
because
the
value
they
add
to
a
home
can
be
significant.
In
your
final
analysis,
be
sure
to
consider
to
take
note
of
any
additions,
an
enclosed
porch,
a
finished
basement,
added
bathrooms
or
a
remodeled
kitchen.
Costs
of
Remodelling,
Renovation
&
Repair
As
a
prospective
homebuyer,
it's
difficult
to
be
an
expert
in
construction
and
maintenance
costs
but
a
working
knowledge
of
these
areas
can
be
valuable.
You
will
most
likely
need
information
in
the
following
areas
- Cost
of
planned
remodeling
and
renovation
- Maintenance
costs
- Value
of
remodeling
and
renovation
work
already
done
- Cost
comparisons
of
various
materials
Value
of
Work
Already
Completed
When
you
inspect
a
home,
your
ability
to
detect
and
price
previous
remodeling
can
be
valuable.
If
a
home
in
a
standard
subdivision
has
been
substantially
remodeled,
you
should
determine
the
approximate
cost
of
the
work
and,
the
increased
value
of
the
property
compared
to
other
homes
in
the
subdivision.
For
example,
suppose
a
home
had
a
300-square-foot
addition
built
within
the
past
five
years.
If
you
take
the
rule-of-thumb
cost
for
additions
of
$100
per
square
foot,
that
addition
may
translate
into
a
$30,000
improvement
to
the
property.
If
the
home
is
priced
at
$15,000
more
than
similar
homes
in
the
subdivision,
you
would
be
getting
as
much
as
$15,000
additional
value
by
buying
the
home
with
the
addition.
Consult
with
a
real
estate
professional
to
determine
whether
the
home
has
been
over-improved
for
its
neighborhood.
If
so,
it
may
affect
resale
of
the
home.
Cost
Comparison
of
Materials
When
you
compare
one
home
to
another,
it's
easier
to
tell
the
relative
value
if
you
know
the
cost
of
materials.
Keep
in
mind
the
following
relationships
when
comparing
material
costs
- A
slate
roof
costs
about
five
to
six
times
as
much
as
an
asphalt
shingle
roof.
- The
cost
of
masonry
or
brick
facing
is
about
three
times
as
much
as
the
cost
of
wood,
vinyl
or
aluminum.
- The
cost
of
hardwood
flooring
is
about
twice
that
of
carpeting
laid
over
plywood
-
An
insulated
glass
window
costs
about
twice
as
much
as
a
window
with
single
glass.
- The
cost
per
square
foot
for
plaster
walls
is
about
two
or
three
times
as
much
as
the
cost
of
drywall.
Estimating
Maintenance
Costs
If
a
home
has
been
neglected,
it's
helpful
to
know
the
maintenance
costs,
such
as
repainting,
installing
gutters
and
downspouts,
sanding
and
finishing
floors,
window
repair
and
minor
carpentry.
If
you
can
estimate
how
much
it
will
cost
to
restore
the
home
to
prime
condition,
you
can
better
judge
whether
the
home
is
priced
properly.
As
the
homeowner,
you
will
be
paying
for
maintenance.
You
can
estimate
the
maintenance
expenses
and
replacement
costs
for
a
property
by
using
theMaintenance
and
Replacement
Costs
Estimator.
Step
1
|
Step
2
|
Step
3
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