Home Inspections

Everyone knows that getting a home inspection when you are buying a home to live in is extremely important. But what if you are in investor? Do you still need a home inspection? Most likely the answer is YES! This is especially true if you are a less experienced investor.

Whether you are planning to buy and hold the property or you are a flipper, putting an inspection clause in the contract gives you a way out if you find something that is completely unexpected and may be very costly to repair. It also gives you a bargaining chip if you need to go back to the seller to adjust your original offer.

Many investors who are planning to flip properties go into the situation (particularly first time flippers) with the idea that they know there are problems and that is why they are purchasing the property "so cheap". They put an offer on the property without taking the proper steps to determine if this is really a sound investment. This is almost certainly a recipe for disaster.

An experienced investor can usually walk through the house and get a pretty fair idea of the visible or obvious work that needs to be done. It is those things that are hidden or of a very technical nature that usually take a trained inspector to uncover. Very few of us are competent to know if a furnace is operating correctly and safely. Now you may say, this furnace looks like it is a hundred years old and I know I am going to be replacing it. That's OK. You can skip the furnace inspection. If the electrical system is going to need to be updated this is a costly item that needs to be figured into the costs to rehab the property. It is certainly something that needs to be taken care of before the cosmetic work begins on the property. These are just few examples of potentially major expenses that can be uncovered in a home inspection. Not having already done a pest inspection before finding a retail buyer has derailed more than a few closings.

A good thing about an inspection is that it will shed some light on the scope of the work that needs to be done on the property. You can get a good idea of the amount of money needed to get the house in good working order from the inspection. Having all of the facts can mean the difference in purchasing a property that will that will turn a decent profit or walking away from one that is sure to end up a failure. You need to always remember that this is a business. It doesn't matter how much the property calls to you. This is no time to fall in love with a particular property and make a decision based on emotions. The bottom line is really the only thing that matters to a savvy investor.

More importantly than any of the things mentioned above, a home inspection can alert you to any potentially hazardous or unsafe conditions in the home that untrained professionals may miss as they walk through the house. Among these could be mold (often hidden), asbestos, lead, carbon monoxide or radon (both colorless and odorless) or even subtle but very serious structural problems that could set you back tens of thousands of dollars. Whether you realize it or not, a professional home inspector can end up saving you thousands of dollars and even prevent you from having to go through costly litigation involving hazardous situations that may discovered at a later date.