Real Estate Investing Basics

The Importance of Real Estate Inspections: Be A Detective when Buying Property

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18 Articles Written
The other day I went to a listing appointment and gradually asked enough pointed questions and did enough research that I passed on listing the property. Upon first glance the lot seemed simple, but I noticed some odd layout to the side of it that made it unclear where the property lines ran. After doing [...] View the full article: The Importance of Real Estate Inspections: Be A Detective when Buying Property on The BiggerPockets Blog. This content is Copyright © 2017 BiggerPockets, Inc. All Rights Reserved.

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    Gregory Bain
    Replied almost 12 years ago
    Mike, I’m all for inspections and disclosures as part of the buying process. However, you don’t walk a property and make an offer that is considered by some to be a “low ball” based on that initial inspection only to beat the owner up with an “inspection report”. Agents who encourage that type of behavior should have their commision adjusted the same way they expect the home owner to adjust the price. I, for one, am tried of these so called “buyers agents” who don’t even have a contract with the vultures they (mis) represent. For the most part, a Forty Year old house is priced and marketed at the price of a Forty Year old house. Anyone with eyes can see it is going to require more than paint and carpet to make it look like a new house. Nice post.
    Gregory Bain
    Replied almost 12 years ago
    Mike, I’m all for inspections and disclosures as part of the buying process. However, you don’t walk a property and make an offer that is considered by some to be a “low ball” based on that initial inspection only to beat the owner up with an “inspection report”. Agents who encourage that type of behavior should have their commision adjusted the same way they expect the home owner to adjust the price. I, for one, am tried of these so called “buyers agents” who don’t even have a contract with the vultures they (mis) represent. For the most part, a Forty Year old house is priced and marketed at the price of a Forty Year old house. Anyone with eyes can see it is going to require more than paint and carpet to make it look like a new house. Nice post.
    Gregory Bain
    Replied almost 12 years ago
    Mike, I’m all for inspections and disclosures as part of the buying process. However, you don’t walk a property and make an offer that is considered by some to be a “low ball” based on that initial inspection only to beat the owner up with an “inspection report”. Agents who encourage that type of behavior should have their commision adjusted the same way they expect the home owner to adjust the price. I, for one, am tried of these so called “buyers agents” who don’t even have a contract with the vultures they (mis) represent. For the most part, a Forty Year old house is priced and marketed at the price of a Forty Year old house. Anyone with eyes can see it is going to require more than paint and carpet to make it look like a new house. Nice post. Reply Report comment
    Mike Farmer
    Replied almost 12 years ago
    Gregory, I’m talking about a commercial deal with a due diligence clause, and soft negotiation if problems are found — it’s called soft negotiation because you’re sort of speaking softly saying I’d like to go forward and get past this due diligence, but here are a few problems that concern me, can we work it out by X Y or Z. It’s smart neogotiation, nothing nefarious.
    Mike Farmer
    Replied almost 12 years ago
    Gregory, I’m talking about a commercial deal with a due diligence clause, and soft negotiation if problems are found — it’s called soft negotiation because you’re sort of speaking softly saying I’d like to go forward and get past this due diligence, but here are a few problems that concern me, can we work it out by X Y or Z. It’s smart neogotiation, nothing nefarious.
    Gregory Bain
    Replied almost 12 years ago
    Mike, we are going to disagree on this issue. Unless the Property Disclosure was unavailable or lied on about something. Then a deal is a deal. The price was already negotiated. Mind you, a structural flaw discovered during inspection is good reason to re- negotiate the price. Same is true if a property owner lies and claims he is unaware of any flooding problems while the inspector uncovers proof of water damage not noticed by the average Joe. Once a buyer enters an agreement and the seller accepts the terms the property is dead in the water. The advertising stops and the attempts to secure other buyers for back-up is almost impossible. Residential sales may take the property off the market for 4 weeks and a Commerical deal may be off the market in negotiations for 4 months during this “discovery” clause. You know the tactic I’m talking about and how it is used against the property owner. I like that word, nefarious. Thanks
    Will Barnard
    Replied almost 12 years ago
    True that inspections and surveys are a necesary part of the due diligence in a property purchase. I also disagree with the comment of the negotiating tactics of offering low ball offers. If you are not negotiating, you are losing! There are times for low ball offers and times for full ask offers. Each individual property requires different tactics.
    Will Barnard
    Replied almost 12 years ago
    True that inspections and surveys are a necesary part of the due diligence in a property purchase. I also disagree with the comment of the negotiating tactics of offering low ball offers. If you are not negotiating, you are losing! There are times for low ball offers and times for full ask offers. Each individual property requires different tactics. Reply Report comment
    Mike Farmer
    Replied almost 12 years ago
    Gregory, Disagreement is fine. Mike
    Brandon
    Replied almost 12 years ago
    I find that if you are quick with your responses and give extra knowledge not always publically available it makes for an easier more comfortable sale.
    Brandon
    Replied almost 12 years ago
    I find that if you are quick with your responses and give extra knowledge not always publically available it makes for an easier more comfortable sale. Reply Report comment
    MoneyMan
    Replied over 11 years ago
    I have bought property like you are describing and have profited just because others had cold feet. If you walk thats ok … there is always someone braver out there!!
    MoneyMan
    Replied over 11 years ago
    I have bought property like you are describing and have profited just because others had cold feet. If you walk thats ok … there is always someone braver out there!!
    Mike Farmer
    Replied over 11 years ago
    Yes, Moneyman, sometimes the spoils go the brave.