Dealing with home inspectors when buying a house
Advice on real estate investing
Is an inspector really necessary? The answer to this commonly asked question among people who are interested in real estate investment is simply: YES! There is no doubt that a home inspector is necessary for real estate investors. Why so? First and foremost, you would not want your money to go down the drain for nothing. That is, in the world of real estate investing, you should not take the plunge of investing on a property that is pretty much guaranteed to be not a success. For, as an investor, not doing so is not a clever financial investment move to make.
For me to discuss further why it is very much important to have a property checked by a real estate investor, let me first talk about what a home inspector is and what the duties of a good home inspector are.
When a home is for sale, it is a home inspector who is often called upon to conduct the real estate inspection; a home inspector is a professional who is charged with the responsibility of identifying whether a home has any defect.
Home inspectors check the core structure of the house or the main foundation of the house, electrical and plumbing system, gas lines, fireplace and wood stove (is present), interior structure: ceiling, door frames, windows, attic, smoke detectors, etc; roof, drainage, and even garage and storage house.
Investors who are planning to flip a house usually take a property without having it inspected. This is commonly done, especially by those who are first time flippers, thinking that they know there are problems with the house that is why they are buying it to flip and sell. The downside of this is, if the investor is not trained to examine a property, he may miss fix the small problems with the house while he is in the process of flipping it. Again, this is not a clever thing to do. Why so? Let me sight an example. If there is a sign of a small problem with the electrical wiring or plumbing behind the wall and the investor misses it and continues with the work, you know very well what will happen next. There will be a need to undo the work done so the problem with the plumbing or electrical wiring behind the wall may be fixed. Money wasted! If the problem had been noticed before starting to work on the project then it should have been fixed first before doing the work and that saves time and money.
Not only does home inspection saves time and makes work more precise and accurate, it also gives the investor a picture of the amount of money which he will spend in flipping the property. This is very important in this line of work for investors not to go over the budget or not have them walk away and leave the property hanging due to unexpected ballooning expenses which may not turn into a decent profit.
Not only are the obvious problems on the structure of the house that is important to notice of. There may be small problems around the house that needs attention and might be missed by untrained eyes. We all know that it is from small problems where big problems arise. Now you may ask, what small problems could be missed and cause so much trouble? There are foundation issues and structural damage that can be threatening to the integrity of the property. If you want an example of a smaller and almost unnoticeable problem, then think of toxic molds. These can be dangerous to the health and can be financially disastrous as well. As an investor, you would not want your property not be sold in the market due to these, right? Or if you could sell the property, you would not want the new owners of the house to complaint about these small yet hazardous problems, right?
Inspection is, no doubt, important before buying a property to flip or buying a house to own and make into good abode. A good home inspector is indeed one of the best and must have tools when it comes to flipping houses and having that good profit.