Home Inspection Tips for Investors
Investors often consider skipping a home inspection when purchasing a property in need of a rehab. I’m here to argue otherwise. Home inspection for investment properties can save a great deal of money – which is good way to start an investment.
There are a lot of things to consider when choosing an investment property. With the multitude of aspects to keep in mind, there are certain hidden damages in properties that are easily overlooked by an investor. Upcoming mechanical failures, problems inside crawl spaces or behind siding, roofing, and certain structural damages are examples of valuable information that may not be so obvious to an investor. If not found early on, these can easily change the return on investment for a property. A seasoned home inspector can catch these items.
Knowing that a home inspection can have immense value to the investment, what are some key things to consider? I’ve compiled a few tips to help you.
1. Work with reputable inspection companies – and check references. Ask your friends, colleagues, and professional circles for their recommendations.
2. Check licensing requirements and confirm that the inspector has the appropriate licensing. This can generally be done through your state’s licensing board. Some municipalities also offer additional certifications, which may be worth a check. Keep in mind that it is not uncommon to ask for the inspector to include a copy of his or her license in the report.
3. Be present during home inspections and ask questions. This is a big one. You’re paying for the inspection and its results will show the affects on your bottom line. While going through the property many inspectors will point out things to note, but if not, ask them to – good and bad. If you really cannot attend the inspection, call and ask any follow-up questions after you receive the report.
4. In case of unexpected big-ticket findings, don’t be afraid to renegotiate with the seller. In many cases, providing the seller with the home inspection report is helpful for both parties to get on the same page before starting the renegotiation process.
In cases of inaccessibility, purchasing a shell, or expecting a gut rehab, skipping a home inspection makes sense. However, in many investment-driven purchases, a home inspection really can reveal just how much outlay – and earning potential – a property may bring.