All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
BlogArrowBusiness ManagementArrowA Savvy Home Inspector Is an Investor’s Best Ally: Here’s What to Look For
Business Management

A Savvy Home Inspector Is an Investor’s Best Ally: Here’s What to Look For

Brett Lee
Expertise: Personal Development, Real Estate Deal Analysis & Advice, Real Estate Investing Basics, Business Management
42 Articles Written
home-inspector

A home inspector is a licensed professional who has expertise in electrical, mechanical, structural, and plumbing systems. They are not experts in every field, but they do understand how the systems work and know how to find problems.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

Believe it or not, there are a lot of states that don’t have laws or even requirements for home inspectors. Anyone who can create a business card can start inspecting. In these states you want to make sure the home inspector at least has a certification by a professional organization such as NAHI, NACHI,  AHIT, Kaplan, or ICA. And just because a home inspector has a construction contractor’s license doesn’t mean they have the knowledge to inspect the other components of a property.

What to Look for in a Good Home Inspector

Credentials. Do they just have a general education/license and have they taken advanced courses and extra certifications that may be a benefit to you?

Ask to see a previous inspection report. Some inspectors, instead of providing information about a problem, will simply say “consult with an electrician.” That doesn’t help you. This is what the discount home inspectors do.

Related: 8 Common Questions Investors Have About Home Inspections – Answered!

Find someone who can do other inspections (i.e. lead paint, lead in water, sewer lines, pest, dry rot, radon gas or septic). When you have a short amount of time to get through inspections, you may not have time to set up another appointment to get those inspections done.

Read reviews about the home inspector. There are a lot of home inspectors who will not go in attics, under houses, or on roofs where most problems are visible.

You want someone who will take the time to show you the problems and even offer suggestions on how to fix them yourself. Ask your real estate agent or read reviews on the home inspector.

Find an inspector who can do infrared photography. This will help you identify moisture and electrical problems behind walls that are not visible to the naked eye. 

Added Benefits of Home Inspectors

If you’re taking on a 30-year loan and a 20% downpayment, a $300-$800 inspection is well worth the investment. Having a third party person produce a report outlining the problems with a property is not only good information for you, but it can save you money on the purchase.

Getting Repairs Done and/or Saving Money on the Purchase

In almost every state, there are laws that require to sellers to disclose known defects in the property they are selling. A home inspector (neutral third party) will find the defects and put it in a report for you. You can then send that report to the seller or the seller’s real estate agent so they know about the defects and now have to disclose them to everyone who wants to buy the property. If you ask for a reduced price or ask for them to make repairs they will be stuck because they have to tell the next buyers the problem, and they will likely end up with the same results. Oftentimes sellers will relent and do the repairs or drop the price of the house.

A Word of Caution

Don’t get the cheapest inspector. There are some home inspection companies that will send out inexperienced inspectors and tell them to write, “We suggest hiring an electrician to evaluate the electrical panel” instead of giving you advice and being able to point out the problem. That doesn’t do you any good. You want an experienced inspector who can tell you what’s wrong and have an idea of what it costs to fix.

What a Home Inspection is Not

A home inspection is a visual inspection. The inspectors will not take apart heaters or fridges. They only test them to see if they are working at the time of purchase. Here is a guide to what inspectors are required to do.

Tips on Using Home Inspectors to Your Advantage

My favorite home inspector is the most detailed-oriented person I’ve met. He has a Master’s degree from Harvard (there are some great inspectors out there). He will find every scratch and little thing wrong with a house and include it in the report with pictures. The more things he finds, the more likely you are to get repairs done. For example, if an inspector finds 100 things wrong and you ask for 10 of the biggest problems, they are going to be relieved you didn’t ask for all 100 problems. If on the same house a cheap inspector finds 15 bigger things wrong and leaves out all of the smaller problems and you ask for 10 things to be repaired, the sellers are going to be more likely to think you are taking advantage of them and not want to do all of the repairs. People like “fair,” and “fair” is relative. The less you ask for in proportion to the number of problems, the more likely you are to have them done.

Related: 7 Smart Tips for Getting the Most Out of a Property Inspection

One of the best strategies to get repairs done that I’ve used is to make two lists of all of the repairs in the report. One list will be what you are asking the sellers to fix, and the other list will be the things you are going to fix once it’s your property. The longer your list is relative to theirs, the more repairs you are likely to get done. Besides, if you send the sellers the inspection report, they no have to disclose all of these same problems to the next buyer and go through the same thing again. And there is always the fear that the next buyer might ask for more. This strategy works very well.

A lot of times sellers will not be able to afford the repairs. That leaves only the option of lowering the price. If you are handy, you can save a bit of money on the purchase and just do the work yourself.

What do YOU look for in a top notch home inspector?

Let’s talk in the comments section below.

By Brett Lee
Brett Lee is a licensed Real Estate Broker in Portland Oregon where he helps people achieve a better future so they can do the things that truly make them happy. Brett is also a buy-and-hold invest...
Read more
Brett Lee is a licensed Real Estate Broker in Portland Oregon where he helps people achieve a better future so they can do the things that truly make them happy. Brett is also a buy-and-hold investor, property manager and investment advisor.
Read Less
10 Replies
    Brendan Novisky Pharmacist from Chillicothe, Ohio
    Replied over 5 years ago
    Thanks for the post! I am still learning the process of buying for investments and the insight into this aspect is priceless.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Taheem Bellz from Atlanta, Georgia
    Replied over 5 years ago
    Thanks for the gem, I’m also learning anxious in the process of doing my first deal, however excited to pull the trigger. That post really gave me more confidence to go through when it’s my time which should in a few months. Definitly will put that knowledge you shared with us in my tool box.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Ayodeji Kuponiyi Investor from King of Prussia, Pennsylvania
    Replied over 5 years ago
    I always learn something new from BP. I’ll use the information you provided here for future acquisitions. Thank you!

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    John Miller Granite Slab industry from Brownsville, Oregon
    Replied over 5 years ago
    Good article Brett, thanks!

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Mujangi Kabamba Investor from Midlothian, VA
    Replied about 5 years ago
    Useful advices. Thanks for sharing.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Cornelius Charles Investor from Oxnard, California
    Replied about 5 years ago
    Thanks Brett. I love the tip in the 2nd to last paragraph.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Russell Brazil Real Estate Agent from Washington, D.C.
    Replied about 5 years ago
    Most home inspectors are worthless. A good one is worth their weight in gold

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Russell Brazil Real Estate Agent from Washington, D.C.
    Replied about 5 years ago
    Finding an inspector who does infrared photography is all but impossible. This is real life, not Holmes on Homes. These guys arnt investing in specialty cameras that run into the many thousands of dollars.
    Brett Lee from Portland, Oregon
    Replied about 5 years ago
    You’re right about having a hard time finding a good inspector and them not having thermal imaging. I am a home inspector/realtor in Portland and I use thermal Imaging. I just met a new realtor today that has 25 years experience and he had never heard of using thermal imaging. He couldn’t believe what it could do. Because home inspectors tend to be bad at what they do, have no customer service and none of the important equipment I started a home inspection company because I knew I would have no competition. Maybe you should do the same and set a new standard.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Sasha Fukuda from Walpole, New Hampshire
    Replied about 2 years ago
    You know, i read this blog post right before i hired my first home inspector. And yet, despite reading this, i didn’t question it when the inspector didn’t try to access the attic and said he wouldn’t go up on the (fairly flat) roof. I ended up asking for an extension of the inspection period the day before it ended because i discovered major red flags at the last moment. One was a serious foundation issue that the inspector had missed. One was related to the neighborhood rather than to the house. And one was a story that one of the tenants told me. She said that her boyfriend had gone up into the attic and discovered squirrel nests and electrical wires that had been chewed by the squirrels down to the copper. Immediately after i got the extension, the realtor and I went to the property to try to access the attic. We went into the vacant second floor apartment, tried to get in thru the trap door, and found it inaccessible. The attic was filled with blown in insulation. Later, i called the tenant and she said that her boyfriend had gained access to the attic thru some other entrance. She said that if i called the next day, she’d ask him and let me know what he said. The next day when i called her, she said that her boyfriend had told her that he’d gained entrance thru a trap door on the roof. I never found out whether this trap door exists. I ended up cancelling the contract over the foundation issue anyway, so the chewed electrical wires became a moot point. In the future, talking to the tenants and neighbors will be one of the first things i do, not one of the last. I will never use that property inspector again, and I will never hire another property inspector that doesn’t go up into attics or on roofs. Oh… and I’ll never look at squirrels the same way again.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
Rotate Log in or sign up to comment

Related Blog Posts

Business Management Jan 03, 2021

5 Extreme Methods I Use to Save Time in My Workday

By Engelo Rumora

Time is your most valuable asset, and you have to invest it wisely. Because of this, I’ve come up with five extreme ways to protect my time.

Read more →

Business Management Dec 30, 2020

Gather Your Dream Team: Must-Have Real Estate Team Members

By Sterling White

There are key roles every property management operation needs to have covered. Here are a few indispensable members I have on my team.

Read more →

Business Management Dec 17, 2020

The (Brutal) Truth About Why You Can’t Find a Partner

By Brandon Turner

If you are having trouble finding a partner, there’s likely one of these three things going on. And there’s a solution.

Read more →

Business Management Dec 15, 2020

LLC vs. S Corporation: Which Is Better for Real Estate?

By Scott Smith

This quick guide will help you decide whether an S corp or series LLC is the best business structure for your real estate investment business.

Read more →
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.