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3 Things to Know About Home Inspectors

You’ve worked this rehab property into a beautiful home and have found a buyer at a price you both like. But the sale contract negotiation is not the final make-or-break point for closing this deal. If you’ve already been working closely with a general contractor on a great rehab, what’s left to worry about with the home inspection?

  • Don’t expect any help from the home inspector to sell a great rehab.Home inspectors are not motivated to help the house sell. In fact, in states where they can be sued for problems found after the homebuyer moves in (and in areas where such suits are more common), they are inclined to expand their list of findings so as not to leave anything off that later becomes a problem. However, frequently their contract leaves them only at risk of returning the inspection fee of about $400 if the buyer is unhappy later.
  • Be prepared to give brief but forthright answers to any buyer concerns about what is on the inspection report.The home inspector makes no recommendations (or shouldn’t) about the property. Their role is to provide information and leave it up to the buyer to decide. But a buyer (and their realtor) may not fully understand the difference between a cosmetic item and a true defect.
  • Know what credentials and licensing are required for home inspectors in your state.Fifteen states do NOT require licensing or credentials to become a home inspector. If not, a home inspector may be a former general contractor,or a guy who read a few articles on the internet. Are inspectors in your state required to be bonded and insured – if not, has the inspector chosen to bond and insure any way?

Learn more about what to expect from the local home inspectors.Which inspectors have past experience in the contracting and/or home repair business?Inspectors will usually supply a blank inspection report on request. And it doesn’t hurt to ask how long they typically spend on each inspection – three hours is reasonable for a single-family residence.

And, ask realtors. Especially in areas where home inspectors are not required to be licensed, realtors frequently have strong opinions about individual local inspectors!

Once your property is on the inspection schedule, you can make sure the inspector is aware of any special considerations, such as an historic home, or a new roof, etc. Beyond that you have no influence on the home inspection other than answering the questions of the homebuyer or the realtor afterwards.

When the prospective buyer raises concerns as a result of the home inspection report, do what you know is best for the property and for the price. If this homebuyer is over-reacting to the home inspection report, another buyer will come along who is more reasonable (and may use a different inspector) and you should come out the winner

What is the reputation of the local home inspectors among realtors? Have you asked around the realtor community?

 

Want to earn money with little or no investment of your own? Keep an eye for my new ebook “STREETWISE PROPERTY INVESTING WHOLESALE BLUEPRINT” explaining wholesaling and how to make it work for you!

 

 

About Author

Andy Werner
Andrew J Warner

Real Estate and investing have been my passion for over 15 years. I love transforming a broken down distressed property into something that is fresh, updated and modern. My real estate investing career began in foreclosures, but I have also built new, worked direct with sellers, apartments, condo conversions, rentals, wholesale, commercial etc.

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