Spending money on homes inspections?

Question

So lets say i get a deal that costs 200,000 but i got it for 180,000 under contract right?

Then i do my due diligence. And i pay 2,000 for an inspection. And i find out there were 15,000 in repairs. So it means my real profit is 5,000 so i cancel the contract and i lost 2,000?

What if it happens again? Will i be losing thousands of dollars for every deal i dont want?

Bill B. · Answer

If you think home inspections cost more than $500, you’re probably new enough that you should get one, but don’t spend more than $500, maybe closer to $350 unless they are testing for radon as well.

I don’t bother in Vegas where houses are relatively new, good weather,  and don’t have basements. I do in MN with older houses and basements, and freeze/thaw weather.

Dutch Langley · Answer

Account ClosedWe used to own a home inspection company and rarely did the costs exceed $500.  But unless you know what to look for and can estimate repairs yourself, wouldn't you at least want to know so you don't end up making a bad purchase?

Anthony Wick · Answer

@Jack Edward Johnson

Not sure where you live, but most home inspections around here cost $350-500. And you can ask the sellers to fix what inspection finds wrong. Of course, they can decline to do so as well.

Alina Trigub · Answer

Account Closed

I'll let the locals comment on the actual price for the home inspection in your area.

However, no matter how much is it, you have to look at it as the cost that prevented you from a bad investment! Is it better to lose $2k upfront or $180k down the road?! This will lead you to the right path.

Sam Shueh · Answer

Most home inspection cost just a few hundred dollars. You can also order a verbal inspection for less money. No one like to write page after page of details.

Evan Wiesner · Answer

Wow, I've had many a house completely replumbed for only 3-3.5K so that seems crazy to pay 1K for just the inspections.

There are a ton of numbers missing from your scenario so I don't get what you're trying to do. If you're flipping it then you're missing all kinds of information, it would be a losing bet just on expected offer price (96% of list), concessions (under FHA loan limits so plan 3% of list) and standard closing costs and commissions. If you're wholesaling you can save some of that but there is just about no margin in this scenario.

I would read more on BP than watching videos. I'm not sure your source but unless you're testing wells, radon, oil tanks, whole house, mold, and a whole pile of other inspections you shouldn't be spending $1,000. Better bet, especially if you're flipping, is to get a really good contractor and have them inspect it. Send a basic inspector through to bullet point major issues and as a double check. Test for radon in your area, and adjust from there.

Theresa Harris · Answer

I've never heard of a plumbing test.  If you mean scoping the pipes, not sure how much that costs or if it is necessary.  For 100 year old homes where the pipes to the city line might have collapsed or if there are large trees in the front yard, perhaps.  Otherwise the property inspector will run taps and check for drainage and flow rates.

Theresa Harris · Answer

Yes, but I have never seen an inspection cost $2000.  At most you might have multiple inspections (septic and home inspection), each of those is a MAX of $500.

Jason D. · Answer

@Jack Edward Johnson everything else aside, yes, you lose that money.

Daniel Bork · Answer

Yes it does. All major systems of the house. My reporting software I use also includes information on the manufacturer, date, model of all appliances included with the sale.

Keep in mind that it is a “visual inspection “ of all accessible areas. Meaning if someone has wall paneling in the basement and I can’t actually see the concrete, block, stone or whatever is behind it, I’m not required to move anything to look and can’t necessarily see any potential issues.

Hope that helps. Any more questions feel free to reach out ! Thanks, Dan

Spending money on homes inspections?

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