An inspection that is geared toward real estate investors is different than a home inspection since investors are looking to get specific information they care about most.
If you are a real estate agent, you know how important it is to get a home inspection. If you are a real estate investor, you want to make sure your investment is worthwhile and that the property meets your specific criteria. There is an old saying that says, “Investors make money when they buy houses not when they sell them” and a diligent property inspector can protect their clients from making a bad investment.
As a real estate investor, you have the ability to speak with your home inspection company from a purely rational standpoint since you most likely don’t have an emotional connection to the property. Therefore, telling the inspector that you are a real estate investor shifts the inspector’s mindset and how they communicate their findings. The home inspector understands that you are mainly concerned with the property’s major systems and they can modify their process, report, and communications to fit your needs.
For example, you may not care as much about loose faucets, cabinet damage, or stained carpet since those are all items are going to be replaced anyway. On the other hand, you will want to heavily focus on the main components of the home like the roof, electrical, plumbing, A/C, and structural components.
We previously mentioned the benefits of hiring an inspector before you purchase a home. Now we are talking about hiring the inspector again after your flip is complete and you are ready to list the home. Many specialized contractors do not communicate with each other and construction anomalies are found in new home construction and flipped properties all the time.
After the inspector completes a pre-listing inspection on a flipped home, you will receive a detailed report on any issues uncovered. This gives you the ability to address those issues on your terms, which most likely means going back to the subcontractor who should have done it right the first time.
The important point to make here is that you can address items on your own terms rather than being directed by a buyer. Furthermore, once repairs are complete you can use the pre-listing report to market the home and give confidence to a new buyer!
If you are purchasing homes and then flipping them for real estate investment purchases, you might have encountered trouble selling at some point. This problem is not usually due to cosmetic issues since the home probably looks great. When flipping homes, the problem comes with hidden damage or major issues that were not addressed before the purchase. When a buyer comes to look at the property you are trying to sell they will hire a home inspector to ensure the house is in good condition.
Just recently, I inspected a home that was just renovated and flipped so as I ran the plumbing through the paces by flushing the toilet, draining the bathtub and the bathroom sink all at the same time. The result was that the drain system failed when I utilized normal operating activities and it flooded the ceiling below. I can tell you that if it didn’t happen during the inspection then it was going to happen to the new homeowner sooner or later. Let’s be clear that most of the time bathrooms pass this simple test and the new homeowner has the peace of mind knowing that the property was properly tested and inspected. The point here is that a good home inspector will uncover restoration deficiencies. If renovations are not done properly you might have to lower the sale price or pay for repairs which can hurt your profits.
Establishing a good relationship with a local home inspection company can be a huge benefit to any real estate investor. Here at Old Line Home Inspections, we offer discounts on the best and most complete property inspections in town if they are ordered in volume. Over time we will work diligently to learn what your needs are and what you care about most. This helps us focus on your needs rather than taking a broad view of inspection procedures.