Why should you vett a house before buying it? Why should you vett contractors?

Greetings, dear readers! I hope this newsletter finds you well. Today, I want to share my unwavering passion for the process of vetting a house, inspired by the eye-opening 1986 movie "The Money Pit" starring Tom Hanks and Shelley Long. If you've ever encountered a situation resembling a "money pit" when buying a home, I'd love to hear your story! Please feel free to share it with me at [email protected]. Don't forget to pass this newsletter along to your friends, family, and anyone you know who owns a house or is looking to purchase one. Let's get started!

Vetting - A Crucial Step for "Newly Renovated" Houses

When I mention "vetting a house," you might be wondering, "What does that mean, and how do I do it?" While the term might not be familiar, trust me, it's an essential process that everyone considering a "newly renovated" house should undertake.

As a journeyman plumber with my husband, a master plumber, we have witnessed countless cases of new homeowners encountering major plumbing issues, along with other hidden problems like faulty HVAC systems, electrical malfunctions, leaky roofs, unstable foundations, and much more. It's heartbreaking to see someone's dream home turn into a nightmare soon after moving in.

Allow me to share an example: a soldier who, after an arduous three-month search, finally settled on a house for his family as they prepared to move to a new station. The house was advertised as "move-in ready" and had undergone recent renovations. Excitedly, he paid a premium price in a hot housing market. However, on his first night in his new home, disaster struck.

Seeking to relax in the jacuzzi in the master bedroom, the soldier turned on the water, oblivious to the flood forming in the kitchen just below. The contractor responsible for the renovation had failed to properly glue and seal the newly installed water lines. The result? The house's main shut-off valve, when opened, disassembled the pipes within the walls, leading to a disastrous flooding incident during the soldier's 20-minute soak.

Now, you might wonder, how could this catastrophe have been avoided? Surprisingly, the soldier had opted for a home inspection, but the issue was somehow missed—perhaps buried in the fine print. I'll delve deeper into the subject of home inspections in a future edition.

Investigate Permits and Inspection History

When considering buying a renovated house, it's crucial to take some proactive steps. Start by calling the county to find out if permits were pulled for the renovations. If so, request a copy of the inspection history. In the upcoming edition, I'll guide you through a step-by-step scenario on how to request these important documents and what to look for in them.

In conclusion, as you contemplate a house that has undergone impressive renovations and caught your eye with its striking before and after pictures, proceed with confidence and consider making the purchase, but with one crucial condition: ensure that all the essential permits have been acquired, and inspections have received a successful pass. If this requirement is not met, remember the famous words of the sharks on Shark Tank and confidently tell your realtor, "I'm out!" Then sing Ariana Grande's lyrics of her song, "Thank you, next."

The Significance of Vetting Contractors

Now, let's shift our focus to vetting contractors. Have you ever hired a plumber, electrician, roofer, or HVAC professional? What questions have you asked to ensure they are reliable? Have you verified their licenses and insurance details? Additionally, do you know the extent of their insurance coverage in the event of a catastrophic accident?

An incident in Annapolis, MD, serves as a cautionary tale. A contractor was hired to extend a kitchen and add an in-law's apartment. However, a month after demolishing the kitchen's exterior wall, the house collapsed. The contractor had numerous failures that year, and his insurance was exhausted, leaving the homeowner without recourse.

To vet a contractor effectively, start by calling the county to verify if they hold an adequate license. Accountability levels differ between licenses, so be sure to hire the one that can be held accountable for their work. Then, inquire if the contractor carries the minimum required insurance coverage or more. This one phone call can save you a nightmare.

Example of Commitment to Accountability

In our plumbing business, we embraced the notion that accidents were a matter of "when," not "if." With the average house we worked on valued at $400,000, the state and county's minimum coverage of $300,000 wouldn't suffice if we caused damage. Hence, we obtained an insurance policy with coverage for multiple millions of dollars, ensuring we could rebuild homes and provide temporary housing and daily necessities if needed.

Stay tuned for more illuminating illustrations on vetting in the next edition. Your valuable time is appreciated, and I hope to have ignited your thoughts on this crucial subject. Know someone who should be subscribed to this newsletter? Be sure to forward them our link so they too can benefit from the valuable knowledge we share for free!