When it comes to properties, especially when you’re on the path to real estate investing, there are certain things you do to make sure that your investment is protected.
From getting multiple quotes, to insurance, one of the often overlooked protections is a home inspection.
Why are we writing about a home inspection?
Because it’s often one of the things that sets us apart from our competitors when it comes to investing in a property.
We tend to have safer deals based on the numbers, and the numbers are reinforced by our confidence in the quality of that property’s deal.
First, let’s talk about what happens during the home inspection.
A Full Home Inspection Is Comprehensive
This means that the home inspection is going to cover a LOT of different angles for the interior and exterior.
The inspection is going to cover things like:
- Structural Elements: things like the structure of the building, foundation, shape of the house, sagging zones, and pretty much anything that would cost the most and would be long-term damage
- Plumbing: Pipes can sometimes have cracks and leaks inside the walls, or might be related to things like sinks, toilets, and tubs, etc. This also includes the water heater.
- Electrical: Wiring needs to be done correctly, and need to make sure that it’s actually up-to-date. Too many times have we seen wiring cause issues later because it’s so outdated.
- Attic & Roof: These are definitely going to be checked as the roof can be one of the most expensive components, and the attic can have issues like leaks or patches.
- HVAC: Need to make sure that heating and cooling work properly and that there aren’t any unexpected issues with the a/c, especially if you’re in the south.
- Exterior: The exterior of the house will get checked like lights, paint, siding, and they’ll do a full check of a garage if it’s unattached.
- Grounds: Basic checks of things like septic, drainage, driveways, and pretty much anything around the property that needs to be maintained.
You get a full home inspection in mostly two scenarios, any time you are buying a house, or whenever you’re doing a new construction build.
There are times when you might need to check out only parts of a house. That would be a partial inspection.
That allows you to choose individual components and get them inspection, which ends up being cheaper and faster.
Missing The Inspection Can Kill Your Deal
The last thing you want, as an investor, is to buy the home, start work on it, and find out there’s a major issue with it like foundation, plumbing, or electrical.
These are generally things that you’d want to know before-hand, so you can use it as leverage to get a better price or get the seller to repair them.
Missing those can cost you several thousand dollars, which comes entirely out of pocket and, by extension, your profit margin.
The lender is going to get their cut, so it’s entirely coming out of yours.
And if you’re doing a buy-and-hold, then that’s definitely even more out of pocket, extending the time it takes to make a return.
Go ahead and get that inspection done.
You’ll be more confident about the deal knowing that the structure is safe or at least it’s what you expected it to be.
And if it’s not, then you can adjust accordingly and adjust expectations with your lender and contractors.
We’ll continue providing some more information on home inspections, when you should do them, and what to do to make sure you’ve got all your bases covered.
Here on mautomat.com.