Seller delaying inspection. Red flag?

Question

Hello guys,

I am in the option period and would like to get an inspection done.  Due to my work schedule, the best times for me are on weekends.  My inspector said he can do it on Saturday morning around 9am. I let the seller know.  He contacted his management company, and they came back and said it would be a "huge mistake" and it would be better to do it during the week when the tenants are gone.  That was exactly what he said word for word.  They proposed the following Wednesday.

Immediately some alarm bells went off in my head.  I can definitely understand it being inconvenient, but a "huge mistake"???  It makes me think he is trying to cover up some electrical/plumbing problems.  Or maybe there are 20 people living there and he doesn't want me to see it...  Should I insist on having it on Saturday?

Thanks.

Jon Holdman · Answer

Don't panic.  Could be any number of things that are causing them to not like Saturday.  Could be as simple as it being inconvenient for them.  Could be the tenants are unaware its being sold and they don't want them to know.  Tenants can get spooked and move when a property gets sold.  I'd push back and see if you can make your date work and find out what's the issue if not.

Michael Seeker · Answer

Keep in mind that a contractor may point out things that are not needed in hopes of getting extra work.  Depending on how well you know the contractor and/or how reputable they are, you may want to watch out for that.

They may be able to offer a better perspective of things that are or will cause problems in the future vs. an inspector, which as you mentioned typically sticks to a template that was built for a home buyer not an investor.

Bryce Y. · Answer

Michael Siekerka Jon Holdman

Thanks guys.  I will be having a contractor walk through with me.  I got a full blown inspection on my first property and imo it was pretty useless and not worth the money.  I can turn on the stove and a/c and see if it works. I can tell that the kitchen and bath are not GFCI ,etc.  Plus on some other things they gave me misguided advice. For example, there were some cracked tiles in the kitchen and they said it could be a slab leak.  I was pretty freaked out and brought in some contractors and they said there's no leak, just old tiles.  I think it's a combination of them not having practical knowledge (compared to a good contractor) and not wanting to be held liable for giving bad advice.

After I get more experience, I will probably just inspect it myself.

Michael Seeker · Answer

Thanks for the correction - I agree :)

Jon Holdman · Answer

I'm with Michael Siekerka here about inspectors.  I hired them when I bought my first residences and for the first couple of investment properties.  They told me a bunch of useless stuff (there's a hole in the screen, complete with picture) and missed important stuff (cast iron sewer line is cracked.)  I understand doing this when you're starting out, but this is stuff you need to learn to do yourself.

"These can often be old and rusty and a source for slow leaks"  Really?  In my experience, you can change "can often be" to "are".

Michael Seeker · Answer

One thing I always look at in every unit is the shutoff valves underneath every sink and behind the toilets.  These can often be old and rusty and a source for slow leaks that will destroy all kinds of things.

It's always possible that the owner had some unlicensed contractor "fix" plumbing or electrical that you'll be stuck correcting down the road and a lot of times it's hard to find these things (even with a thorough inspection).

Are you paying somebody to inspect the property or are you doing it yourself?  My first few properties I hired an inspector and walked through with him (2-3 hours for single family homes) and figured out what types of things he was looking for.  Now I typically do my own inspection while walking through a property and if I see anything out of place I'll bring in a professional to assess it and let the seller know I want it professionally repaired.

Bryce Y. · Answer

Jon Holdman  The issue per the seller is the inconvenience.  It just seems to me like it's not that big of a deal if I were the tenant.  But the part about them getting spooked definitely makes sense.

Michael Siekerka Perhaps the part about 20 people was a little dumb, but I'm more concerned about electrical, plumbing, or other issues that could be temporarily patched up so as to appear fine during the inspection and rear it's head down the road when I am the owner.  Are there any examples of things I should be extra careful for to spot these type of patches?

FWIW the seller seems honest and has been very cooperative thus far.  I think I will give him the benefit of the doubt here.

Michael Seeker · Answer

The whole point of the inspection is to uncover any potential issues such as electrical/plumbing.  You should already know how many tenants are in each unit through the leases - if there are extra undocumented tenants living there, it should be pretty easy to tell.  There will usually be extra beds, make-shift closets, lots of mess/clothes etc.

I agree with Jon Holdman - I wouldn't worry about it.  I agree it was a poor choice of wording, but some people just don't know how to communicate very well.

-Michael

Seller delaying inspection. Red flag?

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