One of the things that we haven’t mentioned before is home inspections. This is one of those things, similar to insurance, where most people find it as an extra or added benefit, but not a critical component of purchasing a property.
So, let’s go over what might be some scenarios where home inspections can really make a deal better for the property you’re going after, regardless of being a homeowner or an investor.
When building a new construction home
If you’re working on a brand new build, then there is what’s called a phase inspection specifically for new construction.
The reason it’s called phase inspection is because there are multiple phases in a new build and you’ll want to have an inspection at each one.
The first is before the foundation pour, when there are pipes and frames set up. You want the first phase to make sure that everything is set up properly before we’ve got permanent concrete in place.
The second is right after the frame is put up. When you’ve got the woodwork up, electrical and vents in place, among everything else related to the skeletal framework of the home, you want to inspect each part to make sure they’re done properly before they’re covered.
The third and last phase on a common phase inspection series is the full home inspection which occurs after all the drywall is hung and finished, roof is installed, windows are in place, etc.
The full home inspection in phase three are basically the same as every other normal full home inspection.
If you’re purchasing an existing home
You’re generally going to want a full home inspection when you’re buying a home.
The seller sometimes doesn’t know about, or neglects to mention, issues with a home that otherwise might crop up later on or will be expensive to repair.
When purchasing a home, you want to make sure you’re buying exactly what you’re expecting.
In a scenario where you’re purchasing the home for yourself, you want the home to be a worthy long-term investment and that’s it is safe to move into.
For an investor, repairs are factoring into your costs and financial planning, so a $20,000 foundation repair on a buy-and-hold property that wasn’t expected will throw your cash flow numbers way off.
Inspecting just a part of the home
If you’re buying a home and are sure that most of it is in a stage that’s expected or you have home that needs some work in one part, you can do a partial inspection.
The partial inspection will save money and time where you can simply have one component of the home looked at instead of the entire thing, giving you exactly what you need to move forward with repairs.
After the full home inspection
While purchasing a home, there might be issues revealed with the full home inspection that you ask the seller to take care of.
You’ll want to see that they hired a contractor that was licensed and insured to take care of the work. This means that they have a warranty on their work.
But if they didn’t, and they can’t provide documentation of it, then you want to get a re-inspection done. This will help verify that the work was done and that it was done properly.
Ignoring home inspections might end up being a terrible decision
So if you’re looking to purchase a property, for yourself or as an investment, be sure to get an inspection.
It’s really just $400 on average, so it’s a really small price to pay to make sure you’re getting what you pay for.
Think of it as sort of a pre-insurance, one-time charge that reveals all the things with a house that otherwise might’ve remained hidden for who knows how long, until it’s too late and racks up a hefty bill.
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