There are a lot of unknowns when it comes to real estate investing.
What is the house worth in its current state?
How much will repairs cost?
What will the after repair value be?
So anything you can do to reduce the uncertainty is a good thing. That’s where the home inspection comes in. A good inspector can uncover problems that are not obvious on the outside, saving you loads of time and money in the end.
Check Behind the Walls
Think of it this way. You would never buy a car without test driving it first, right? Well, a good home inspector is like a mechanic—checking under the hood and thumping the tires—looking beyond the new paint job and fresh carpet and assessing the bones of the house.
When you are considering the purchase of a foreclosure or distressed property, the home inspection takes on critical importance. The potential for a catastrophic issue such as mold, termites or an entire house-wide system failure is very real.
Use A Licensed Inspector And Ask Questions—Lots of Them
Here at NavCap, we always encourage our clients to engage a qualified, licensed home inspector to give the property a once over, once it is under contract. We also believe it is a good idea to walk the house with the inspector—asking questions as you go. The better informed you are, the better buying decisions you will make. And make sure the inspector hits all the highlights—the roof, the electrical system, septic, plumbing, foundation, and exterior.
Transform the Inspector’s Report Into a Thorough Scope of Work
The inspector’s multi-page report will give you a good idea of the repairs needed to make the house sellable. That means you are well on your way to putting together a realistic Scope of Work and accurate repair budget for the project. Be sure to share the inspector’s report with your contractors as they submit their bids to ensure that everyone is on the same page.
Be Ready to Walk Away
It has been our experience that the home inspection can make or break a deal. We have personally witnessed seemingly perfect projects come crashing down to reality when an inspector uncovers an expensive problem (or two, or three!) Our clients tell us time and again that the inspection fee was money well spent, as they forge ahead in search of their next flip.
Need a recommendation for a good inspector in your area? We can help. Reach out to us at 443.603.0193 or at info@gonavcap.com to discuss the home inspection process and our flexible short-term loan programs.