How to get quotes from contractors after inspection?

Question

Hi,

After the home inspection is complete, I want to get a few contractor quotes for negotiation with the seller. How do I get contractor quotes, do I just email them the inspection report, or do I have to pay the contractor to physically visit the property for further assessment if required? I saw some inspection reports that state things like "a qualified electrical engineer will have to evaluate for repair". I presume such qualified engineers reside in the contractor firm?

Who will coordinate the visit if needed, realtor? I am out of state.

Thanks!

Rgds,

Tracy

Joe Rice · Answer

I'm in a similar situation now.  I just signed a P & S on a multi-family 4 unit.   had the inspection done and I have the inspection report, which is very detailed with lots of pictures and good descriptions of the defects.  But, my rehab needs are more major - there is a lot of work needed to address the issues found in the report & to make the property modern.  New HVAC needed, new exterior siding, closets created and spaces turned into bedrooms, replace old electrical, etc.

Now that I have the report, I need to quickly see what it would cost to address all the must-fix issues as well as my nice to haves and cosmetic.  I'm thinking of asking 3 - 4 contractors to give me an estimate based inspection report and then pay 2 of them to come onsite and have the specialists loook at it and get a more accurate estimate I can use to negotiate with seller.  Does that sound like a responsible way to go about it?

On a more general note, what are the next steps after getting your report?  With contractors and anything else?  And also, what is the process to get bids from contractors and get a contract drafterd?  Including electrical, structural, plumbing, etc?

Thanks!

Joe

Angie Shires · Answer

@Tracy Pah unless you have a relationship with inspector, they probably won't give you an estimate. If it's general repairs, or even HVAC, roof, etc., your Realtor should be able to help you get some general numbers for repair (or know someone who can give you general numbers). Your Realtor will also help you determine how you should negotiate those repairs...sometimes it's ask for the repairs, but a lot of times it is a certain dollar amount off sales price or at closing. All states differ, so it may be different in other states. Where are you purchasing property?

A good realtor knows that negotiations aren't over offer is accepted, there are many things that are negotiated, even up to closing.

Trace P. · Answer

Thanks everyone for the advice. From the response, am I right to assume that typically, the inspector or realtor can give a reasonable estimate for the repairs, if the repairs are not major/severe rehab? Hence contractors are typically not engaged during the purchase process for non-major rehab? What is considered major, e.g. replacing of heat furnace, flooring repair, ceiling repair, electrical wiring repair...?

Mike McCarthy · Answer

in my opinion, it depends on the defect. If it’s something pretty straight forward, I’ll ask the inspector what they think the cost would be estimate. It’s usually close enough price for a negotiation.

If it’s more complicated like a foundation issue, I’d find a trusted contractor to take a look. If you have a realtor, they can probably get you a recommendation.

Sam Shueh · Answer

The licensed state PE does not exist at the electrician firm. The inspector has limited knowledge on circuit panels, grounding and does not want to get sued being wrong.

You can eMail to the contractors and start asking them what you want to address. Better yet those who respond get invited for a detailed quotation. Most homes in the US are sold as-is. The price is already factored in the conditions as report shows. However, if there are major issues with the house NOT in the rpt the sellers may make some concession toward final agreed value.

Luke Carl · Answer

@Tracy Pah need a few more details here. When you’re new it can be tough. In 2019 contractors are very busy and very hard to find.

Is there a reason you think the property needs repairs?

You don’t need a contractor to negotiate on the inspection. Ask your realtor how many properties they own and if they have anyone that can help you.

Rockstars know rockstars.