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Home inspection – Review by Dc Fawcett

Home inspectionIntroduction

Home inspection is an important step in the home buying process. Through home inspection must be done for performance analysis and identification of defects. Dc Fawcett , a real estate writer and talker gives instructions on how to inspect a home.

Select the home inspector with great care

Buyers must select the home inspector after a meticulous examination.

  1. Should not go by recommendations.
  2. They should not just select whomever they find.
  3. Base their findings on the following queries:-
    • How long have they been active in active in home inspecting?
    • Do they have required Qualification?
    • Elaborate your track record

It’s better to hire a licensed inspector who can do a fine inspection.

What to inspect?

Home inspectors inspect a lot. Some of them are

  • Proper functioning of the furnace, water heater, water cooler, chimney and fireplace

  • Appliances must be examined for their working condition. Some of these include refrigerator, dishwasher, stove, microwave, washer and dryer.

  • The walls, roofs, ceilings, window panes etc of the garage must be scrutinized. The electrical equipment must be up to date and the garage door must be in perfect condition.

  • Grounds must be scanned for leakages from septic tanks and proper drainage.

There is much more to be done and home inspectors do so.

    However home inspectors don’t examine pest control, swimming baths, paint coatings and poisonous casts.
  • Failure to take part in the inspection:

    Most buyers miss out on the inspection.  It’s not just enough to see the inspection report only. Buyers have to be there to comprehend the home. Some inspectors stay back after the inspection to clarify doubts. They give you tips on repairs and home staging. Inspectors who don’t like to take buyers along with them are not fine.

  • Sellers must do the inspection before the buyers :

    Sellers must get the home pre inspected. If they allow buyers to scrutinize before them, they won’t have time to do the repairs and thus fail to market a fine home. By doing pre sales inspection, they can control repair and home staging costs.

  • Give access to the inspector:

    Don’t lock the garage or the basement. If it is locked, give the keys to the inspector. Often home owners feel inspectors to be intrusive. However, they have to provide the access as it is his job. From the seller’s side, he should take care to make the cupboards an empty nest. On the inspector’s arrival, he can just introduce himself, give a few hints, provide the keys and leave the place.

  • Disclosure documents :

    Documents by sellers reveal what they have repaired. Buyers should ask the inspector to inspect repairs and also clear doubts with him. Disclosure statements are different for various states and jurisdictions. The buyer can request the inspector to give special attention to certain things that he requires.


These home inspection suggestions are very crucial. Home inspection must be done with great care as homes are the most vital purchase of our lives. Buyers have to do a master home inspection in order to get a hot real estate housing property.



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DC Fawcett’s Signs of a real estate bubble

real estate bubbleThe real estate market is sometimes characterized by unstable behavior. There is an increased demand for real estate properties in the face of limited supply. Prices often soar to high levels at this time. Speculators enter the market, further driving the demand. This state is called a real estate bubble. At one point of time, supply increases and demand decreases. The prices then come down automatically and the bubble deflates. A real estate bubble is not good for buyers as it results in losses. Buyers end up paying more for a property than it’s worth and end up selling for less. So buyers have to learn how to sense a bubble. Here are 5 signs of one as reviewed by DC Fawcett.

  1. Interest rates When interest rates are lowered, the demand for properties increases. This results in a bubble. Buyers have to look out for a reduction in interest rates. When the interest rates rise even by 1%, the demand comes down and the bubble bursts.
  2. There is lots of leverage  When you take a long-term financing loan, you are actually leveraging your money. The more you pay down cash, the less you are leveraging your money. When the demand for houses increase and the prices soar, there will be more leveraging of money. This increased leverage may be a sign of a bubble as generally in the United States, 45% of transactions are made by paying down cash.
  3. Prices of houses soar faster than salaries When home prices escalate faster than incomes, then there can be a fizz in the local market. Investors must watch out for this sign. They can consult real estate agents regarding this. Some real estate agents calculate the average income level and employment level and compare it with the price rise for instability.
  4. Reduction in foreign demand Reduction in foreign demand slows down the international market. Due to decrease in foreign demand, international market prices will soar and this can be a bubble.
  5. Risky loans
    When risky loans are lent, it may be a sign of a bubble. When the market prices soar, more loans are borrowed. An increase in subprime loans and loans with bad credit can be seen during times of bubble.


It’s difficult to identify bubbles. It does not mean that there is a bubble just because there is a price appreciation. A bubble is said to have occurred when there is a price appreciation without the support of factors that drive the value of real estate property. For example: San Fransisco, California is not in a bubble just because prices are high. However these 5 signs towards identifying a bubble have to be watched out for.


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DC Fawcett’s Tips – Real Estate Investment Trust

Real Estate Investment TrustREIT ( Real Estate Investment Trust ) is an organization or a company which either owns or finances income-generating real estate. Investors get all types of regular income streams, diversification, and long-term capital appreciation from the REIT. These companies pay the taxable income to the shareholders by way of dividend, for which the shareholders have to pay the tax on dividend income. DC Fawcett suggests the investors to choose the right REIT.


REIT’s are known as total return investments. They provide high dividends and potential for moderate, long-term capital appreciations. They offer

  1. High Dividend Yield

    The dividend yield in a REIT is significantly higher than other equities.

  2. Income and long-term growth

    REIT provides long term returns apart from the returns from other stocks and bonds

  3. Liquidity

    Publicly traded REIT shares can be readily converted into cash as the trading is done in major stock exchanges.

How to choose REIT’s and their financial benefits

An individual might invest in a REIT that is listed on the stock-exchange. They also go to REIT mutual fund or exchange-traded fund. Profitable investment Investors also have the capacity to invest in public non-listed non REITs and private non REITs.

REIT stocks and shares are publicly priced in stock exchange- listed REIT’s like other companies. To assess the investment value of REIT shares, certain aspects are taken into consideration.

  • Anticipated Growth in EPS(Earning per share)
  • Anticipated total return from stock that is estimated from the price change and the dividend yield.
  • Current dividend yields of bonds, utility stocks and other high-income investments.
  • Percentage of dividend payout ratios.
  • Management quality and corporate structure

REIT’s financial benefits

  1.  What is the benefit you get into investing in REIT

    The market rewards the companies that consistently pay the dividend and has a growth in earning-per-share ratio and stock valuation metric. You need to make sure that

    • The company has the ability to increase its earnings unfailingly.
    • REIT management teams are able to reinvest the cash flow quickly and effectively while simultaneously developing other strategies to create new revenue opportunities.
    • Strong operating characteristics that uses the strategies for succeeding in competitive markets like effective corporate governance procedures, conservative leverage, acceptable accounting practices and strong tenant relationships.
  2. Earning measurements and ability to pay dividends

    You need to compare the amount of dividend for the previous and the current quarter and assess how much the company growth has improved in REIT earnings, which are generated by higher revenues, lower costs, and new business opportunities.

  3. REIT role play in retirement savings

    REIT’s are the main aspect when it comes to an investment portfolio and retirement savings. The REIT’s should pay at least 90% of their taxable income to the shareholders by means of dividend, making them a strong income-generating investment.


In the last decade, investors, who has been investing in commercial real estate has switched on to REIT because of its attractive offers.