Hugh Cairns: The perfect house

People are often curious to know what kinds of conditions are found during home inspections. In older homes, the inspection report often leads itself to deficiency recognition and how aging components are likely to last. The inspection of new homes tends to lend itself towards the proper installation of components and making sure things are done right. Either way, there seems to be a reportable item to consider before purchase and usually it’s a routine uncomplicated fix.

(Photo: Hugh Cairns)

The inspection of new homes tends to lend itself towards the proper installation of components and making sure things are done right.

I was reading an article produced by Carson Dunlop & Associates Ltd. out of Toronto recently. It stated that they have inspected over 85,000 homes and haven’t found the perfect house yet. Therefore, if the perfect house isn’t out there, then spending a couple of bucks usually is what it takes to return the home to optimum performance. Next, something else will need attention and an additional investment will be required. A pattern is developing and unavoidable. It is called maintenance.

Let us replace the term “perfect house” with “optimum house”. How much money does it take to maintain a home to its optimum performance? It’s a big question with a straightforward answer – 1%. When you consider the life cycle of every component of a house, a reasonable annual estimate of the cost of normal maintenance is 1% of the value of the house (not including the lot).

It may be an upcoming roof re-surface or a furnace down the line. Toss in the odd unexpected repair and you are looking at an average of 1% of the value of the home to keep it in optimum performance. Sadly, all construction components and systems will eventually wear out. The good news is they do not all wear out at the same time because different components have different life cycles. Houses tend to settle into what you might call a “normal maintenance pattern”. Interestingly, the 1% rule applies to expensive and affordable homes. Think of the home as a 100 year home, a 1% investment every year is what it’s going to take to keep it at optimum performance.

Expectations play a huge role when home buyer arrives at an inspection. The expectations of buyers vary dramatically based on their experiences, priorities, standards and resources to maintain a home or improve it. The inspection of the condition of the home helps buyers with expectations about the home and will help clarify what kind of future financial commitments that is likely and unavoidable.

If you are buying a 15-year-old home, let’s face it, depending on the quality of the covering you may be looking at a new one shortly. If you are buying a 30-year-old home, you may require a new furnace. Don’t expected maintenance items scare you away from a perfectly good home.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.