{"id":68141,"date":"2014-12-09T18:00:12","date_gmt":"2014-12-10T01:00:12","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=68141"},"modified":"2023-03-29T13:43:19","modified_gmt":"2023-03-29T19:43:19","slug":"2014-12-09-smart-tips-get-a-better-property-inspection-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/2014-12-09-smart-tips-get-a-better-property-inspection-real-estate","title":{"rendered":"7 Smart Tips for Getting the Most Out of a Property Inspection"},"content":{"rendered":"

I really don\u2019t like inspections.<\/p>\n

Well, I really just don\u2019t like paying for an inspection, where if anything is actually wrong, I am told to \u201ccontact a qualified expert.\u201d Whether it is foundation, electrical, or plumbing, the inspector will usually just tell me to get a quote from \u201ca qualified expert\u201d or get that quote themselves.<\/p>\n

Despite the lack of clarity that comes from most inspections, they are very expensive. I have seen inspections cost $650 for a single family home and up to $30,000 for a large apartment building. In any case, that is money that could be used to actually fix<\/em> the things that are wrong, or at least it seems to me.<\/p>\n

In a span of about eighteen months, I purchased well over 400 homes from a large real estate investment trust (REIT), and I didn\u2019t once get a formal inspection. That is not to say that I just bought homes all willy-nilly without ever doing my due diligence. I just decided that there was a better way to inspect buildings \u2013 inexpensively! I\u2019m not going to advocate that you don\u2019t get inspections on a building because there is risk involved with that process, which newbies should avoid. I am, however, going to give you my list of what to ask, look for, and negotiate during the escrow process.<\/p>\n

\u00a07 Tips for Getting the Most Out of a Property\u00a0Inspection<\/h2>\n

1. Make sure your inspector gives you bids for the items he calls out.<\/h3>\n

This is a big one for me. If I\u2019m going to be paying $400 or more for an inspection, then I sure as heck better be getting a quote on the work for the things that are wrong. It is important to understand as the buyer (person ordering the inspection) that any bid you get from the inspector is going to be marked up in some way. That is fine, though; you still want it.<\/p>\n

Related:<\/strong> Do You Have a Property Inspection Toolkit? (9 Must-Haves to Get You Prepared)<\/a><\/em><\/p>\n

Many inspectors will double up as contractors or have a contractor partner that they recommend for doing repairs found during inspection. However, most times they aren\u2019t particularly interested in the contracting work and will just make their bids so high that it would become worth it if you wanted them to do the work.<\/p>\n

2. Once you have an inspection, have a separate contractor bid out the work.<\/h3>\n

You should always, and I mean always<\/em>, get two bids for work, but this is particularly true of work being done during the escrow process. In fact, you should walk the property with your contractor and ask them to bring up anything that they think may be wrong with the house.<\/p>\n

This will essentially act as a second inspection and won\u2019t cost you a dollar, at least up front. The contractor is going to be incentivized to nitpick every single thing he sees wrong because it means more business for him. This aligning of interest is a good thing for you and important in making sure you don\u2019t buy a property with a large issue.<\/p>\n

3. Make sure your inspection includes sewer, plumbing, and electrical.<\/h3>\n

These are the three areas where I have been hurt worst when buying properties. Everyone gets super worried about a bad foundation, but you can usually tell a property has a bad foundation just by looking at it, and inspectors are pretty good on that item. Electrical, plumbing and sewer are more difficult because they require more work. Access to the foundation is easy \u2013 walk around the building or go into the crawl space under the house. It is far more difficult to check the wiring behind the walls or the insides of pipes.<\/p>\n

Make sure to ask the inspector if these items are included in the inspection cost because sometimes they aren\u2019t. At worst, have your contractor go around and do a cursory test of the switches and plumbing. This approach won\u2019t be perfect, but it is better than nothing.<\/p>\n

Lastly, make sure to ask the seller to disclose any specific issues that they have ever had with the aforementioned. Getting their response in writing, even if it is just email, can be helpful down the line if there is an issue.<\/p>\n

4. A soil test can be a good use of money.<\/h3>\n

You want to get this priced out, and it can be expensive, but I\u2019m actually in favor of a good soil test. The reason is that there could be pollutants or other really harmful material, like lead, in the soil, which could meaningfully impact your property. In particular, I would get a soil test on a large deal or my first couple of deals. If you are only going to own one property, it is worth the $500 dollars for the soil test to make sure that you don\u2019t get sued or lose a lot of value.<\/p>\n

5. Ask for a better price on the inspection.<\/h3>\n

I\u2019m always a fan of trying to negotiate pricing. The worst that they can say is \u201cNo.\u201d If you are anything like me — and you likely are if you are on BiggerPockets reading this article — then you want to own a lot of real estate. This is a fact that I would share with the inspector when you go back to ask for a better price. Tell them that if they do a good job, then you will give them all of your inspections.<\/p>\n

I like having a go-to inspector whom I can trust and have worked with before. He is going to give me better pricing, but even more importantly, he is going to be more likely to have my back and do a better job. It is no different than hiring a contractor for the first time \u2013 you want to build a good relationship.<\/p>\n

6. Be physically present at the inspection.<\/h3>\n

Body language and intonation are important. Be present at the inspection so you can see how the seller, inspector, and agents react to certain things. This is a great way to simply learn more about real estate, but it is also a way to get a \u201cfeel\u201d for how these people view your property.<\/p>\n

Related:<\/strong> 7 Essential Elements of Your Home Inspection (Beware of #7!)<\/a><\/em><\/p>\n

Inspectors and agents have seen hundreds of homes, and they will have a good idea if something is a big issue or not a big deal at all. You want to be there to see their reaction. There are loads and loads of ethical and good real estate agents out there, but like any profession, there are also those that aren\u2019t so moral. The reality of the situation is that the agents are incentivized to get the deal done, and their incentives don\u2019t necessarily align with yours. I\u2019m not saying to be distrustful, but I do think a skeptical mindset is a good thing for a property inspection.<\/p>\n

7. Ask as many questions as you can think of\u2026 and take notes on the responses.<\/h3>\n

Inspections can be a whirlwind — and an emotional time. If this is a first purchase or a big deal, then you will be even more emotionally invested. Thus, it is important to ask as many questions as possible in an attempt to critically look at the situation.<\/p>\n

A few I like are:<\/p>\n