When should I do Inspections

Question

Hello to all BP investors. My question is should I be making up front investments by having inspections done prior to making an offer?

Nick Earls · Answer

Generally sellers won't want to waste their or your time doing an inspection until you've already shown you're serious by making an offer.  An inspection contingency will protect you in the vast majority of cases so you shouldn't worry about it anyway.

Jackie Griffin · Answer

Thank you to all my BP Community Investors who responded to my post. You all are very helpful with your advice and I do appreciate it.

This will be my first deal and the owner is motivated and want to be done with this building. The owner showed me the entire building a couple of days ago and it is in need of updates and some repairs.

All of your answers were my thought from the beginning but, I wanted or needed consensus since this is my first. Thank you again.

I am also in the process of getting contractors at least 3 to take a look at the building to get estimates on what needs to be done. If you all have thoughts on this please don't hold back.

I am learning and I don't want fear to hold me back. I know I am going to make some mistakes but, that is okay as long as it does not break the bank. Mistakes is how we learn.

Again, Big Thank yous to all. I will keep all posted on the outcome.

Yazid Shahid · Answer

Its always great to be vigilant and aware of how everything is looking around your property.. Being consistent with the upkeeping of your home..after all you want buyers , renters to feel that cleanines and comfortable environment....

Brandon Roof · Answer

This all hinges on the property owner allowing you to carryout an inspection in the first place, prior to entering into an agreement.  Even if they do, I would think that conducting inspections prior to placing an offer would be a very costly endeavor.  For every inspection, what percentage of the time would you not place an offer based on the results?  That will be one area where money is completely lost. Next, for the times you do decide to make an offer, how often will those offers be rejected?  This is another segment of that upfront investment that will also be lost.  If you are concerned about making an offer, then learning of some catastrophic issue that will be a significant expense that affects your offer, that is exactly what an inspection is for.  It is informational but also provides the foundation for you to renegotiate based on the findings in order to make your offer financially viable, and if the issues are a bigger headache than you want to address, you can simply pull your offer and move onto the next potential opportunity, minimizing the investment, you have made up to this point.  If you are hoping to have a better grasp what the home may require prior to making an offer, ask your agent about any disclosures the seller has made.  Also, surround yourself with people who have a great eye to identify items that may require your attention.  Do you have a friend, family member or possibly even a contractor that can provide insight and is willing to view the property with you, then by all means, bring them along.  You can also begin to learn what certain issues typically cost in the area you are seeking properties.  Go to a hardware store and see what certain flooring will cost per square foot when fully installed.  Do the same with things like hot water heaters, siding, etc.  If the hardware store doesn't provide installation services for certain items, begin to contact electricians, plumbers, roofers and HVAC technicians.  This will provide you more comfort when trying to determine what you offer should be based on the condition of the home.

Nicole A. · Answer

I don't see why you'd do a home inspection prior to putting in an offer. That's a lot of money potentially spent for nothing if you decide not to offer. Home inspections are done once the property is under contract.

Also, it's important to know that home inspections for purchase are just to give you an idea on the condition of the property (if you can't decipher this stuff for yourself) so that you can negotiate further if desired...or walk away. Home inspections are usually required if you're financing the property.

Home inspections are *not* a full list of possible issues with the house nor are the items on the list absolutely required to be fixed to go through with purchasing.

When should I do Inspections

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