If you are in the investment property business, you will have to deal with home inspections at some point. Most property investors tend to shy away from the prospect of a home inspection, viewing it as something to be avoided rather than welcomed.
But there are many ways by which a home inspection could benefit you as a real estate investor. Furthermore, a home inspector might just be one of the most helpful professionals you could work within your field.
What home inspection is about
Home inspection services typically involve a thorough examination of a home. Trained professionals go over every inch of the house from top to bottom, assessing the damage, identifying potential problem areas, and generally determining the condition of the property.
A typical home inspection involves a look at the walls, floors, ceiling, attic, basement or cellar, and all the rooms of the house. In addition, they cover the plumbing and HVAC system, along with the roof, garage, driveway, patio, and more. Inspections even include the foundation and internal structure of a home.
Why you shouldn’t fear home inspection
Home inspections aim to determine the condition of a house, usually before purchase. The reason why so many real estate investors are so leery of them is that any discovered faults or damage may require costly repairs.
But that is precisely why a home inspection is so important, particularly to investors that purchase property intending to sell it off for a profit. If you routinely buy old houses or buildings and want to sell them at marked up prices, wouldn’t you like to know whether or not there is anything wrong with the structure?
A home inspection could cut your costs
A home inspection is even more important when you regularly buy multiple houses to fix up and resell. By knowing exactly what to expect before you invest, you will be better able to determine whether or not the cost is worth it.
Speaking of cost, a home inspection could actually be an important component of your negotiation strategy. If the home inspector does find something wrong with the house, you could use this is a “bargaining chip” to get the seller to go down further. This could be an especially useful technique for situations wherein the owner won’t budge on the price.
Knowing when to back out
There may be instances when the home inspection will make you decide to back out of the deal. If a house or building is beyond repair or if it will be too costly to fix, you are better off knowing that now rather than later. Having the house go through a home inspection process will help you determine whether you should push through with the purchase or walk away.
Paying for a home inspection
In some cases, paying for the cost of a home inspection is the responsibility of the buyer. In others, the owner may assume the cost or split it with the buyer. In any case, you must always insist on having any planned purchase examined thoroughly before you close negotiations.
A good home inspection professional will give you a thorough and honest assessment of the home you are planning to buy. Rather than viewing inspectors as adversaries, you would be better off considering them valuable sources of information that could save you a lot of time and money.
If you would like to know more about how a home inspection can be beneficial to property investors, give us a call at 845-863-3326 or visit the DR Home Inspectors website.