One question which seems to be commonly asked amongst those who're interested in real estate investment, particularly in flipping properties, is whether or not a real estate inspection is actually needed. The long and short answer to that question is absolutely and I will do my best to explain precisely why this is so.
First of all, a real estate inspection is the act of having a qualified (and in many states, licensed) professional take a look around the property you are considering and informing you of obvious and potential damage or problems with the property. This isn't something you would like your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know what to look for in an inspection and know what those things could mean.
Numerous who are planning to flip properties enter into the situation (particularly first time flippers) with the attitude that they know there are problems with the property and that is why they are purchasing the property. The problem is that the untrained eyes might skip some problems that ought to be addressed prior to moving along to other problems.
For instance, if there were apparent signs of plumbing troubles that can lead to a leak behind the wall, you wouldn't wish to paint that wall or replace the floors till you had the possible leak checked and either confirmed or denied and repaired if necessary. Otherwise you'd likely need to undo the work (wasting both time and money) that had already been done by the time you found out about the leak that a competent inspector would have told you about before you even started working on the property.
Inspections are great before placing the bid on a house simply because they actually give investors a bargaining chip. For the true (at heart) investor this is a fact that basically cannot be overlooked as it directly affects the bottom line price. If the roof needs to be replaced, you are justified in offering a lower amount. If the electrical system needs to be updated, this is something which should be adjusted or amended in the final offer. These are also things that are easily identified by a qualified and competent property inspector. Any thing that can save money and time is good when investing in property and an inspection can do both.
One more great thing about a good property inspection is that it often sheds light on the amount of money that will be needed in order to get the house in good working (or flappable order). Knowledge is very important in this line of work and can mean the difference between taking on a project (if the repair budget won't go beyond the eventual value of the property) or walking away if the expenses would be too great to turn a good profit. As an investor, you should never accept a property that's pretty much certain to be a failure, it's merely not a wise financial move to make. It does not matter how much the property calls to you on a personal level in the business of investing. The bottom line is the only call you ought to be taking.
More importantly nevertheless than any of the things mentioned above, a proper home inspection can tell you potentially risky conditions within the home that the untrained eyes may not take notice of. A few of these things include toxic mold, which could be financially devastating as well as hazardous to your health; foundation issues, and structural damage that is threatening the integrity of the property. An inspector must also notice the structural integrity of homes that can affect your home if they are weakened or fail all together. While these things appear so simple, it is frequently the simple things that lead to the greatest disasters. Whether or not you realize it, a good home inspector is one of the best tools you are able to have in your arsenal when it comes to flipping real estate as an investment venture.
First of all, a real estate inspection is the act of having a qualified (and in many states, licensed) professional take a look around the property you are considering and informing you of obvious and potential damage or problems with the property. This isn't something you would like your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know what to look for in an inspection and know what those things could mean.
Numerous who are planning to flip properties enter into the situation (particularly first time flippers) with the attitude that they know there are problems with the property and that is why they are purchasing the property. The problem is that the untrained eyes might skip some problems that ought to be addressed prior to moving along to other problems.
For instance, if there were apparent signs of plumbing troubles that can lead to a leak behind the wall, you wouldn't wish to paint that wall or replace the floors till you had the possible leak checked and either confirmed or denied and repaired if necessary. Otherwise you'd likely need to undo the work (wasting both time and money) that had already been done by the time you found out about the leak that a competent inspector would have told you about before you even started working on the property.
Inspections are great before placing the bid on a house simply because they actually give investors a bargaining chip. For the true (at heart) investor this is a fact that basically cannot be overlooked as it directly affects the bottom line price. If the roof needs to be replaced, you are justified in offering a lower amount. If the electrical system needs to be updated, this is something which should be adjusted or amended in the final offer. These are also things that are easily identified by a qualified and competent property inspector. Any thing that can save money and time is good when investing in property and an inspection can do both.
One more great thing about a good property inspection is that it often sheds light on the amount of money that will be needed in order to get the house in good working (or flappable order). Knowledge is very important in this line of work and can mean the difference between taking on a project (if the repair budget won't go beyond the eventual value of the property) or walking away if the expenses would be too great to turn a good profit. As an investor, you should never accept a property that's pretty much certain to be a failure, it's merely not a wise financial move to make. It does not matter how much the property calls to you on a personal level in the business of investing. The bottom line is the only call you ought to be taking.
More importantly nevertheless than any of the things mentioned above, a proper home inspection can tell you potentially risky conditions within the home that the untrained eyes may not take notice of. A few of these things include toxic mold, which could be financially devastating as well as hazardous to your health; foundation issues, and structural damage that is threatening the integrity of the property. An inspector must also notice the structural integrity of homes that can affect your home if they are weakened or fail all together. While these things appear so simple, it is frequently the simple things that lead to the greatest disasters. Whether or not you realize it, a good home inspector is one of the best tools you are able to have in your arsenal when it comes to flipping real estate as an investment venture.
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