How do you know when the $500 inspection isn't enough?

Question

Standard property inspections are surface level by design.

They walk the property. They check what they can see. They hand you a report.

What they're NOT doing:

— Scoping your sewer line

— Testing for mold behind the walls

— Calculating your true deferred maintenance cost

— Putting together an actual capital plan

— Telling you what this building is really going to cost you over the next 5 years

That's not a knock on inspectors. (I'm an accredited one myself) That's just not what a standard inspection is.

The problem is when buyers treat it like it is.

I've seen it play out with clients and partners more times than I can count. The inspection comes back "mostly fine." The contractor walks it and throws out a number. The deal pencils. They close.

Then reality shows up. A sewer lateral that needs full replacement. An HVAC system running on borrowed time. Moisture damage that's been quietly spreading for years.

None of it was visible. All of it was knowable, if you'd paid to look.

So how do you know when to go deeper?

When the building is 1980s or older with original systems. When there's any sign of water, staining, smell, soft floors, anything. When deferred maintenance is visible anywhere, because it's never isolated to one place. And especially when the deal only works if nothing unexpected shows up.

A sewer scope, a mold test, an HVAC inspection, you're looking at a few thousand dollars total to get actual facts instead of surface-level assumptions.

The $500 inspection tells you mostly what's there. The specialist inspections tell you what's coming.

Knowing the difference is the job.

What does your due diligence stack look like on multifamily? What do you always insist on before closing?

Richard F. · Answer

Your First Clue is the age of the structure. Every element needs to be replaced or have major work performed at some point in it's life. Second Clue is the apparent age of critical elements based on your own visual inspection or Seller receipts. There are plenty of tables available online that will inform you of the "Useful Life" of elements in Residential Construction. Do the math. The closer you are to end of statistical life for an element, the higher the maintenance costs will be.

When you conduct a visual inspection, you need to know enough about typical construction to know where to look for potential signs of water intrusion, which is generally your biggest source of pain.

Carini Rochester · Answer

The $500 report should flag areas of concern and state that a specialist in that trade should be consulted (structural engineer, plumber, HVAC contractor, etc.)

Kodie Talley · Answer

This is spot on. A lot of people treat the inspection report like it’s the full story when it’s really just a snapshot of what’s visible that day. As an agent I actually find myself convincing buyers and investors to do the "add-on" inspections like the sewer scope. Paying $1000-5000 in inspections could save tens of thousands down the road.

Curious in your experience—what’s the most common “surprise” that shows up when buyers skip the deeper inspections?

JS Burnett · Answer

That is likely true on a SFH, but I haven't found an inspector who will look at a multifamily project for 500.00 and look at all of those things. I'd be concerned if an inspector said they were willing to do an inspection for that amount. Even then most aren't running camera's down sewer lines or deep dives into equipment like HVAC or Boilers.

How do you know when the $500 inspection isn't enough?

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