One question that appears to be frequently asked among those who are involved in property investment, especially in flipping properties, is whether or not a property inspection is actually necessary. The lengthy and quick reply to that query is without any doubt, yes, and I will do my best to give an explanation for precisely why this is so. First of all, a property inspection is the act of having a qualified (and in many states, licensed) professional take a look round the property you are considering and informing you of apparent and potential damages or issues with the property. This is not something you choose your uncle Bob doing except, of course, good old uncle Bob has had the education and experience to understand what to check for in an inspection and recognize what those things ought to mean.
Many who are planning to flip homes enter into the business (particularly first-time flippers) with the mindset that they understand there are issues with the property and that is why they are buying the property. The problem is that the untrained eyes may omit some problems that must be addressed before moving along to other problems.
For instance, if there had been apparent signs of plumbing issues that could cause in a leak in the wall, you would not want to paint that wall or replace the flooring till you had the possible leak checked and either established or denied and repaired if necessary. Otherwise, you would in all likelihood need to undo the work (wasting both time and money) that had already been carried out by the time you discovered the leak that a professional inspector would have informed you about before you even started out working on the property.
Inspections are very important before submitting the bid on a property due to the fact that they definitely provide investors with a bargaining chip. For the true (at heart) investor this is a fact that without a doubt cannot be neglected as it has a direct effect on the bottom line of the investment. If the roof has to be replaced you are justified in offering a lower amount. If the electrical system needs to be updated, this is something that has to be adjusted or amended in the final offer. These are also matters that are effortlessly identified by using a certified and trained property inspector. Anything that can save time and money is important when investing in a property and an inspection can do both.
Another wonderful 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 home in proper working (or flippable) order. Knowledge is very vital in this line of work and can mean the difference between taking on a project (if the repair budget won’t exceed the eventual price of the property) or walking away if the costs would be too much to return a good profit. As an investor you should in no way take on a property that is pretty much guaranteed to be a failure, it is actually not a smart economic 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 however than any of the points stated above, a good home inspection can inform you of potentially hazardous conditions inside the home that the untrained eyes may not take note of. Some of these things include poisonous mold, which can be financially disastrous as well as hazardous to your health; foundation issues, and structural damage that is threatening the integrity of the property. An inspector should additionally note the structural integrity of houses that could affect your home if they are weakened or fail altogether. While these things appear so simple, it is often the easy issues that lead to the greatest disasters. Whether or not you realize it, a proper home inspector is one of the best tools you can have in your arsenal when it comes to flipping real estate as a business venture.