When buying a new home and the plan is to rent it out, would you perform an inspection? One answer that I've heard is "no". The home is new and so it already comes with warranties. It seems like the best option would be to perform the inspection at around 10 months, just two months before the 1 year warranty on some of the items expires. Does this make sense? It seems logical since most of the main issues should come out within that time frame and the builder should be responsible for fixing them. What do you recommend?
Always do a home inspection before you close/buy, unless your plan is to gut and flip it.
Since you're buying a new house, (even if it's meant to rent), your home inspector will probably find issues. If it's major, make sure the builder fix it, or put it on the punch list to fix it. Make sure it's in writing that it will be fixed before you close on the house.
You can of course do another inspection in the 10th month period to take advantage of the 1 year warranty. And also to confirm the builder fixed the issues found in the first inspection as well.
And if you're renting it, your renter will probably let you know of any issues as well. Keep in mind some of the wear and tear is probably not going to be covered by the warranty. Unless it's specified in your contract.
Always do a home inspection. On a new home it is best to do 3 or 4 phase inspections, the most important being a pre-drywall and insulation inspection. This will be the last set of eyes on the systems before it is sealed with drywall and exterior finishes.
I would definitely recommend a pre-closing inspection. There are some great builders out there who build a solid house and stand behind it with a warranty. Unfortunately there are others who cut corners including the warranty support.
It'll be MUCH better to find issues before you pay the final amount and move in - you still have leverage. Once you've bought it, you are relying on them to be good builders and support their warranty.
Anecdote: I have a cousin in Canada who bought a house in a new built neighborhood. Second winter they were there, they got literally 6-12" of snow IN their attic. Builder's first response was 'out of warranty, not a construction issue.' The builder did eventually fix the vents that caused the issue and insurance handled the damage, but it was a good reminder that anything can happen, even in a brand new house.
Great advice everyone! looks like inspection is the route to go and worth the piece of mind. Thank you.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.