Im doing my first long distance deal and Im having the agent walk the home along with a general contractor. The contractor will be giving a list of needed repairs or costs to remodel.
What is typical for costs for this inspection by the GC?
Is there anything to be mindful during this inspection period?
What language should be included in the offer that is contingent on results from the inspection?
Your contractor knows so much more then an inspector and he knows how much things cost.
So is he worth twice that of an inspector?
Inspections cost between $300-$600.
Your agent and contractor can answer your second and third questions
Your agent makes a very good comish! Your contractor does not!
@Kegan B. I’d recommend doing both the walk through with the inspector and the contractor.
I am buying a property that I had my contractor walk through and he gave me some estimates to finish an unfinished unit but didn’t really find much wrong with the two buildings on the site.
I had the inspector out and he found some major issues. My contractor got a second contractor to come give an estimate on the repairs the inspector had found. This second contractor had run a very large construction company in Massachusetts for about 25 years and now works “retired” jobs for his past time. He quoted me $100,000 to fix the issues.
At that point I decided I could take or leave the property and lowered my offer by $100,000. The seller countered and I said no, I was firm at the new low price. The realtor advised the seller to take it. She did. I’m about to close on my new property.
Im in the process of lining up the workers to begin repairing the problems, but without both the inspector and the contractors I would have either gotten a dangerous building, or not gotten a deal on it.
I am working on my first long distance buys too. I have a few offers out and it a bit scary. My realtor advised me to have both a inspection and a GC to come through. They had let me know the GC isn't looking at some big things. I still am confused how the GC can miss things an inspector would catch.
What is typical for costs for this inspection by the GC? - This will depend on your relationship. Generally a couple hundred bucks if you've never worked with them before. Probably free if you have a solid working relationship.
Is there anything to be mindful during this inspection period? - The inspection report is a key tool in your buying process. It will give you a wonderful overview of the property that a GC will not. The process shows you almost every issue a place currently has. What you do with that is up to you :)
What language should be included in the offer that is contingent on results from the inspection? - We put something to the effect of "after the inspection we can rescind the offer for any reason" in the P&S. This language gives us the ability to walk away or renegotiate from a strong position. @Alecia Loveless gives a great example of this position above.
Like this story, I had a few to many clients that after I give them a report they back out of the deal, and I explain them that this report might sound worst that what actually is but my reports are very detail. Guys this is an excellent tool to negotiate a deals, this is a legal documents and once it is disclose the seller is liable because he has knowledge of the defect. Take advantage like Mrs. loveless did, good job..