Hiring Home Inspector?

You're buying a house. You want it inspected before you buy, to ensure you know what you are getting into. How do you pick the right home inspector?

Well, the first thing to keep in mind is that the home inspector is a generalist. They can give you an overall review of the property that is unbiased and relatively thorough, but they do not have the expertise of an engineer or other professional. The opinion of the home inspector is unaffected by the outcome of your real estate decision because they get paid regardless of whether you buy or not. The opinion of your real estate agent is not necessarily as unbiased, since that person has a stake in the sale. If the sale doesn't happen, the real estate agent doesn't get paid.

The majority of people do hire home inspectors. In most cases, there will be a clause in their offer to purchase that makes the sale contingent on acceptable results of the inspection. This protects you as the buyer, because you can void the deal if the inspection turns up a significant problem.

The cost of the inspection will vary. As a result, it pays to shop around. However, don't just buy the lowest priced inspection, because it may be that you aren't receiving as complete an assessment if you do. Look for an inspector who will tell you what will be covered in the inspection. You should get a review of at least the following components in the home or property:

The exterior of the building, including walls, soffits, decks, roof, chimneys, and drainage conditions of the property
The interior of the building, including windows, doors, plumbing, electrical
Major systems such as the cooling and heating systems
Attic and basement or crawl space and whether these parts of the building are adequately insulated and ventilated

If your inspector isn't prepared to cover all these areas, you are choosing the wrong inspector.

Keep in mind that inspectors don't take things apart; they do a visual inspection only. This limits the problems that can be identified, and the kinds of comments that can be made. For instance, an inspector can tell you if the roof needs to be fixed now, but can't tell you how much time a roof has left. In order to do that, a more in-depth review, including samples of the shingles, would be required.

Home inspectors do not do specialized work. For instance, they won't check for termites for you. You'll usually have to hire specialists for features such as swimming pools, septic systems, underground storage tanks for heating oil, or the health of trees and shrubs on the property. There can be exceptions, so if you need a review of the swimming pool, you should look for a home inspector who is qualified to do that for you.

Do you need the appliances checked as part of the deal? Not all inspectors will deal with these either. Check if this is a concern of yours with your particular real estate transaction.

So how do you actually find a good inspector? Your real estate agent may be able to refer you to an inspector. However, a friend of the real estate agent may not be as unbiased as you'd like. If you want to find an inspector yourself, you can start with your local Yellow pages. You can also find a professional on the web, through one of the home inspector certification associations. If you find your own inspector, be prepared to ask for references and then check them!

Of course, a word of mouth referral from a satisfied customer is always a good way to find a good person. In general, you should accompany the inspector as the inspection is made. They can explain things on the spot, and answer questions that you may have. Doing this can give you the best bang for your buck!

U.S. Bonds Drop

Allan Robinson — Globe and Mail Update

Weaker-than-expected demand at an auction today of two-year U.S. Treasuries sent yields across all longer-term maturities sharply higher.

The yields on two-year, five-year, 10-year and 30-year maturities climbed six to eight basis points after the government's sale of $22-billion (U.S.) of two-year notes had the feeblest demand since April, according to Bloomberg. (A basis point is 1/100th. of a percentage point.)

But the U.S,. wasn't alone. Bond markets around the world declined, pushing yields higher, as a result of strong gross domestic product growth in the United Kingdom and rising business confidence in Germany, said Carolyn Kwan, a financial markets economist at Scotia Capital Inc.

Government bond yields in Canada also climbed. The increase in bond yields was exacerbated by the bond auction, Ms. Kwan said. The weakness in the U.S. bond market also likely reflects the anticipated increase in government borrowing requirements over the next few months, she said.

The rate-setting arm of the U.S. Federal Reserve Board is expected to increase the federal funds rate when it meets on Tuesday. Economists expect the target rate will be increased by one-quarter of a percentage point to 4.5 per cent.

The yield on two-year Treasuries increased six basis points today to 4.44 per cent. The U.S. Treasury is expected to announce the size of its quarterly sales of three-year and 10-year notes next week and the 30-year bond the following week, according to Bloomberg.

Central Bank Models

Focus on this month`s issue is on Central Banks Models for pricing rates, wage growth or lack of & the output gap.

Wages in North America have grown modestly at best. Expectations, based on previous economic cycles would be to see wage growth at much higher levels than what we're experiencing today. Since the largest multi-national firms no longer have the pricing power they used to, the focus on profitability is in lowering costs. This coupled with the fact that many new jobs are "poor" jobs, leads to lower than expected wage growth and therefore lower than expected inflationary pressures.

Prediction is for another .25 increase in the Prime Rate and a .50% decrease, yes decrease in 2007.

We've seen a recent spike in bond yields around the world due to the last US bond issuance not being as popular as anticipated (below article attached). However, CIBC World Markets is predicting a 10-year bond yield at 50 bps lower by Dec 2006 and nearly 75 bps lower by Dec 2007. Both predictions should be encouraging to mortgage markets with lower rates anticipated through 2006 and into 2007. Once again, supporting the mortgage strategy of selling variable with teaser periods between 6 months and a year and then doing a "mortgage check-up" with the client after the teaser period expires to see if locking in is right.

Steve's Rates

YourMortgages.ca Premium Rates
Mortgage Term	Steve's Rates	Bank Rates
Variable Rate	2.50%	5.00%
6 Month Closed	4.95%	5.55%
1 Year Closed	4.8%	5.75%
2 Year Closed	4.9%	5.90%
3 Year Closed	4.90%	6.00%
4 Year Closed	4.85%	6.15%
5 Year Closed	5.01%	6.30%
7 Year Closed	5.12%	6.95%
10 Year Closed	5.37%	7.40%
15 Year Closed	5.65%	n/a
18 Year Closed	5.70%	n/a
25 Year Closed	5.79%	n/a

Rates are subject to constant change, for the best rates call 667.9816.

Resources

Business Supporting Business — Thank You:

Insurance
Canyon Insurance covers all your needs, ask for harry Mason
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www.otishuck.com

A Quote to Note:

Would I want to be judged by whether or not I was popular? Wouldn't I want to be judged on what was true as opposed to what might be popular?
Stephen Breyer

Contact

At Prolink Mortgage Inc., I have over 30 lending financial mortgage institutions in Canada. With Steve Faux sourcing the best rates and the best products to suit your needs!

Direct Line — 403.667.9816

Direct Fax — 403.509.1007

Email — steve@yourmortgages.ca