Is A Residential Property Inspection Really Necessary?

One question that seems to be commonly asked among those that are interested in property investment, particularly in flipping real estate, is whether or not a real estate inspection is really necessary. The long and short answer to that inquiry is, definitely, and I will do my best to explain exactly why this is so.

First of all, a real estate inspection is actually 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 even problems with the property. This is not really something you want your uncle Bob doing, unless of course, good old uncle Bob has had the training and experience to know just what to look for in an assessment and understand what those things could mean.

Many that are intending to flip real estate enter into the situation (especially first time flippers) with the mindset that they realize there are issues with the property which is exactly why they are purchasing the property. The trouble is that the untrained eyes may miss a few issues that really should be attended to before moving along to other problems.

For instance, if there were apparent indications of plumbing complications that could result in a water leak behind the wall, you wouldn't want to repaint that wall surface or even upgrade the flooring until you had the possible leak inspected and either verified or denied and repaired if needed. Otherwise you will most likely have 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 seasoned professional would have told you about before you even began working on the house.

Inspections are great prior to placing the bid on a home because they actually provide investors a bargaining chip. For the true (at heart) investor this is a fact that simply can not be ignored as it directly affects the bottom line cost. If the roof needs to be replaced you are justified in offering a reduced amount. If the electrical system needs to be updated, this is something that really should be adjusted or amended in the ultimate offer. These are also things that are easily identified by a certified and skilled home assessor. Any thing that could conserve time and money is great when investing in property and an inspection can possibly do both.

Another great thing about a good property examination is that it often sheds light on the amount of funds that will be needed so as to get the home in good operating (or flippable order). Knowledge is essential in this line of work and can mean the difference between taking on a project (if the repair budget will not exceed the resulting value of the property) or walking away if the expenditures will be too great in order to turn a respectable profit. As an investor you should not ever take on a house that is pretty much guaranteed to be a failure, it is simply not a sensible financial move to make. It doesn't matter how much the house calls to you on a personal level, in the business of investing, the bottom line is the only call you should be taking.

More importantly however than any of the things touched on above, a proper home inspection can inform you of possible harmful conditions within the home that the inexperienced eyes may not take notice of. Some of these things include toxic mold, which can be economically disastrous and harmful to your overall health; foundation issues, and structural damage that is threatening the stability of the house. An inspector should also acknowledge the structural stability of homes that could have an effect on your house if they are weakened or break down entirely. While these things seem so simple, it is often the simple things which lead to the worst disasters. Whether or not you realize it, a good property examiner is one of the very best tools you can have in your arsenal when it involves flipping real estate as an investment venture.

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