Flipper/Rehabber · Sandy Springs, GA · Member since 2019 · 14 posts · 11 votes
Investors, I am curious. If a wholesaler offered you a property that had a third-party home inspection for $50 - $100 you could order would you buy it?
I am considering becoming a wholesaler but looking to create a strategic advantage. Trying to see if this is of value to investors or a big fat loser idea. LOL
@Ivory Coats Nope, not at all. I'd rather pay the going rate to someone that is working for me, and doesn't have any conflicting interests. And since an inspection takes about two hours (in my experience), who would you get to do so cheaply?
Hi @Ivory Coats! I'd definitely buy a property inspection report (assuming it was done by a licensed professional as opposed to some random person) for $50-$100! I'm going to need to get one done anyways so if this is something you already have I think that would definitely help to set you apart!
Ok, good to know. Thanks for the feedback. And yes it would be by a licensed inspector. Still working through the logistics so your feedback is really appreciated.
@Ivory Coats - Absolutely. At the very least, it will give you a checklist of items that you need to address on the property initially. I always recommend a home inspection even if you waive the inspection. You should know what you're getting into as well as address any major issues up front. Purchasing a property is a huge investment hence you want to protect your asset by being proactive about issues. Best of luck on closing the deal!
Great question. ALWAYS ALWAYS ALWAYS have a qualified professional inspect a home before you buy it so that you at least have a surface level idea what you're getting yourself into.
A reputable, certified home inspector will check all the major systems of the home electrical, plumbing, hvac, roof, structural defects, potential foundation issues a.k.a some of the most costly items that will take away from your bottom line as an investor.
It would definitely be worth it to research and verify the home inspection company before paying and ensure the inspection will be encompassing all major systems and components of the home as $50-$100 is one of the cheapest quotes I've seen in this market. Inspections usually range anywhere from $300-$700 depending on the quality of the servicer and any additional tests or bonds that need to be conducted. No matter what the price, a good inspector can save you MUCH more money than they cost you.
Lastly, keep in mind inspectors are just following a checklist and are typically not experts in any specific area or system of the home. So if there are any issues that need to be looked at further, they will simply give you a blanket explanation of their concern and recommend you consult wth an expert in the certain system (i.e. electrician, plumber, hvac specialist).
@Ivory Coats Nope, not at all. I'd rather pay the going rate to someone that is working for me, and doesn't have any conflicting interests. And since an inspection takes about two hours (in my experience), who would you get to do so cheaply?
@Trent B Paul thanks for the feedback. I think you misunderstood the question a little bit. I know it’s important I’m wondering are investors willing to pay a fee to get this information.like as as add on. I hope that’s a little more clear.
@Mike Kostner Thanks. This is what I’m looking to learn. The only reason it will be cheaper is 2 fold. One the scale at which we do it allows us to get better rates from the inspectors. Two: the idea is we are selling the report multiple times which is why we can charge a smaller fee.
I completely get wanting a separate inspection though. Curious if the additional information helps or if you still would prefer getting your own done.
@Ivory Coats investors love information. So the more information you can provide to help make their decision, the better.
I would pay if/when I had a relationship with the wholesaler. If this was our first deal together I would be very skeptical of a $50-100 inspection report.
Investors, I am curious. If a wholesaler offered you a property that had a third-party home inspection for $50 - $100 you could order would you buy it?
I am considering becoming a wholesaler but looking to create a strategic advantage. Trying to see if this is of value to investors or a big fat loser idea. LOL
Thanks for any and all feedback.
I like where your mind is going. Always be looking for ways to add more value than the competition!
One thing I'd like to note is that if I'm buying a property from a wholesaler, I'm going to use my own inspector, or none at all depending on my expertise. If I'm out of the area I may find more value in your referring multiple inspectors to me that I can interview.
If a wholesaler was to tell me they can get me an inspection for $50 - $100, I'd first wonder why it's so inexpensive and then want to know if there's a conflict of interest if you ordered the inspection.
One idea could be crediting them $50 - $100 at closing for the inspection. Make it cheaper for them instead of being the one to order the inspection.
@Scott Johnson This is incredible feedback. And that makes sense I kind of just tossed those numbers out there. But I agree too low can be suspicious. Appreciate ya!
I do see need in the marketplace for succinct inspection reports that are investor friendly. I always recommend inspections for newer buyers or regular non investor buyers. But for the seasoned professionals I would suggest focusing on electrical, mechanical and plumbing. Possibly structural as well if there is any concern.
I once received an inspection that pointed out a birds nest on an exterior flood light, and a dent on the address numbers above the garage door. The report was almost the size of the Old Testament.
I’m not sure if you’re thinking what im thinking but I do like the idea of innovation in the inspection industry. I just feel like a lot of their information is overkill sometimes but maybe that’s just because I get annoyed and I’m only human. Lol.
@Scott Johnson This is incredible feedback. And that makes sense I kind of just tossed those numbers out there. But I agree too low can be suspicious. Appreciate ya!
I do to generate a more complete scope of work beyond the obvious repairs I would need to do. I try to fix everything within reason so I can deal less with calls from tenants later on. If the property price does not leave me enough room to minimize my out-of-pocket, then I just walk away and let someone else deal with the future headache. BTW I pay 450 for a thorough inspection...it can save you money in the long run.
@Trent B Paul thanks for the feedback. I think you misunderstood the question a little bit. I know it’s important I’m wondering are investors willing to pay a fee to get this information.like as as add on. I hope that’s a little more clear.
Ivory,
I apologize for the misunderstanding. I understand your question more clearly. I would again refer back to researching validity and reputation of the inspector you choose.
As an agent who represents investor clients, if we were presented with the option for $50-$100 at closing, as Scott suggested, I would recommend to my clients that it would make sense. Especially if you were a wholesaler I worked with in the past, were known to be ethical and had a good reputation in the community