Do you folks always get building inspections and pest inspections? I'd hate to miss something when I buy, only to be surprised later. They cost quite a bit and I wonder how much insight they would offer.
I usually only look at a house once before buying it. During the 20 minutes or so that I’m at the house, I inspect it and then make an offer right there on the spot if I think it is a deal. I do not pay for a seperate inspection of any kind. Obviously, I’ve done the required work in the past to learn how to inspect the house. There are many inexpensive books and courses on this subject.
Good Luck,
Mike
As far as I’m concerned, saving that few hundred dollars could be the most expensive mistake you could ever make. I’d never buy a property without full inpsections being performed. I may delay a deal in the name of caution, but I don’t like surprises. Plus, I think most lenders will require inspections as well.
I agree with both of the previous posters. I know some investors who’ve been doing this for so long, they’ve become accustomed to doing their own inspections, like propertymanager (one day I hope to get to this level). I’ve only been doing this for not even two years now, and still get a formal inspection done. Matter of fact, I just picked up another HUD last week, and have an inspection slated for later this week. With utility deposits, utility usage, and the inspection, I’ll be out around $400, but I’ll have peace of mind knowing everything is in working order.
Also, when you get a formal inspection done, they usually won’t do structural inspections or termite inspections - those usually cost extra, so even if you pay someone for a regular inspection, there could still be things they don’t catch.
Just a real-world anecdote here. I always get inspections and one of the deals I’m working on is no exception. I negotiated a great price … with certainly enough room for the improvements we knew needed to be made. The inspection earlier this week revealed roof damage and leaks in a flat roof at the front of the unit. I got an estimate for the roof and dry wall. Ended up saving myself a surprise later on and even made a few more bucks on the deal. Bottom line, it was worth the few hundred I had to pay the inspector!
One thing to consider when it comes to inspections is the state that you are in. For instance, in Texas, inspectors must be licensed by the Texas Real Estate Commission. Hearing that some inspectors charge more for structural inspections is interesting. I have never heard that before, but that may because it is in a different state. Here, inspectors must give an opinion of the foundation performance. We also check in the attic for roof structure support, etc.
Another item of note is price. The best inspector is not always the cheapest. I have an interesting point of view from this because I am not only a licensed inspector, but I am also a licensed real estate agent. I am the agent for a house here in the D/FW area for a client that is purchasing it. As a result, I cannot be the inspector. I had to hire an inspector to go through the house. This inspector was one that I have seen around before through other agents, and I had met him a couple of times. Naturally, I looked through his report with a fine-toothed comb. He missed a few things and was flat wrong on a couple. He didn’t even walk the roof. He stated that it was too hot for him to walk the roof and made up some reasoning on the report that I couldn’t believe he actually put down on paper.
I work with a lot of investors in the D/FW area either as an agent or as an inspector, depending on their situation. A typical inspection should take around three hours. It simply takes that long to get a good thorough knowledge of everything in the house. Every house is going to have 50 or so problems with it. It doesn’t matter if it is brand new or 50 years old. I have two phased inspections on brand new construction homes going on right now. I watched a city inspector give a green tag on rough plumbing that was sloped the wrong direction. The builder doesn’t like me too much right now, but I don’t work for the builder or the city. I work for my client, and my job as an inspector is to look out for my client’s best interest.
There are some investors that pick up houses all the time without ever having a formal inspection. Some of those also have the financial backing to support them should an issue come up later during the rehab phase. Not everyone is in that same boat though. For those people, getting an inspection can prevent potential costly repairs that weren’t accounted for when originally running the numbers on the house. Keep in mind, that if you sell the house retail when you flip it, the buyer is likely to have an inspection done. By knowing what the buyer’s inspector is going to find in the house allows you to either remedy the situation or simply disclose it so that the sale of the house goes much more smoothly.
If you have any questions, feel free to call or email anytime.
Lee Warren