When you've decided to put in an offer on a house, never underestimate the importance of the home inspection.
And, whether you're buying your own home or making a real estate investment purchase, you don't want just any home inspection, but a quality inspection.
Obviously, you want to know about any potential problems the property has (which is why you placed a contigency in your offer regarding a favorable inspection, right?).
Just like any business, there's definitely a difference between home inspectors.
Now, for each area that you may be buying real estate investment properties in, you'll need to ask around to find a home inspector that you can place your faith in.
I want to warn you against one pitfall that many people don't seem to think about: be wary about any home inspector that the seller's agent recommends.
Remember, the agent is looking at making around 6% when this deal closes. Depending on the area, we're talking big money! Never underestimate the power that greed holds over some people. Even the best of people can have their judgment clouded when they're looking at thousands of dollars in commissions.
Therefore, even though the seller may offer you a deep discount on their recommended home inspection, be careful here.
If the real estate agent has a relationship with the home inspector, there exists the potential of an "unspoken agreement" between them where the inspector will be more likely to let some things slide in their assessment.
The home inspector knows that if the report comes back favorable to the seller's side, that there will most likely be more business coming from that agent in the future.
That can mean big losses for you in the future!
It should be obvious at this point that you want to do your own homework when setting up the home inspection on that property you're hoping to cash in on.
Two resources that you may want to start with are American Society of Home Inspectors, Inc. (ASHI) and the National Association of Certified Home Inspectors. You can contact ASHI at 800-743-ASHI or the National Association of Certified Home Inspectors at 1-877 FIND-INS.
Good luck with your next successful real estate investment!
Published by Matt Z. on October 27, 2007 08:32 PM
