Tag Archive for: property investor

How Can Real Estate Investors Benefit from Home Inspections?

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Flipping houses takes skill, creativity, and a lot of patience. Perhaps one of the trickiest parts to navigate when flipping houses comes after all the flipping is over–selling the house. Real estate flippers work with the goal to resell in mind, but negotiating prices with buyers, especially for a property that just went under major renovation, can prove difficult.

Incomplete air duct work.

One of the best ways for flippers to have guaranteed success in selling their homes is to have a pre-listing inspection performed by a professional before putting the house on the market. Four key benefits to a pre-listing inspection include:

 

  • Recognizing or eliminating selling difficulty based on hidden damage or issues. Most selling problems aren’t from cosmetic problems, but from problems discovered in the structure, foundation, or systems (plumbing, electrical, etc) in a home. A pre-listing inspection can prevent you from having to lower a selling price. 

 

  • Addressing issues on your own terms. When you know of damage to the house before buyers do, you can take charge of how to fix issues before the house goes on the market. If a buyer notices an issue, they might want more credit for it in the listing price than it actually takes to resolve the problem. Plus, typically if a buyer sees one thing wrong, they will assume there are more issues, which impacts offers. 

 

  • Honest evaluations of the house and relationships with inspection companies. Hiring a home inspector before purchasing a home gives you an honest evaluation of what you’re getting into. Hire an inspector again after the flip is complete (before you list the home), can help ensure optimal selling practices and reduce potential issues that could come up during U&O or through a buyer’s inspection. Developing relationships with a home inspection company builds rapport and helps them understand your individual needs as a flipper, taking a lot of stress out of flipping in the long run.

 

  • Confidence in your abilities and credibility as a brand. Pre-sale inspection verifies all the work done on your house is up to code. And while some people think an inspection is the responsibility of the buyer, a pre-inspected, damage-free house builds your reputation as a trustworthy seller. It also allows you to maximize the selling price of your flipped home. 

At Musselman Home Inspection, we want to help you make homes the best they can be. Our pre-listing inspection is just one of the many services we offer to keep homes happy and healthy. If we can help you in any way, feel free to contact us, and we’d be happy to chat with you. 

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Sump Pump Slump

Nothing is worse than stepping into your basement and being ankle-deep in water.

 

When your sump pump fails, it can quickly lead to flooding that not only can have a negative effect on the foundation of your home, but ruin just about anything stored in your basement as well. But most of us want to avoid the possibility of this failure from ever happening, so, how do you know how to care for your pump and when it needs replaced?

 

An important piece of information to know is that, just like any mechanical device, your sump pump has a lifespan.

 

Specifically, 8-12 years is the average time frame you’ll be able to get out of it before replacement is necessary. If you aren’t sure how old the pump is, but know that your house is over that 8-12 year limit, it’s a good idea to swap it out proactively.

 

To make sure the pump that you do have installed is running properly and efficiently to maximize that lifespan, there’s a few things you can do to regularly maintain it.

 

 

First, we want to take a look into the water inside the pump to make sure there’s no dirt and debris inside that could be clogging certain elements, making it work harder and straining the system.

 

Next, there will be a switch inside that you can pull up to test that everything is in working order, water is flowing as it should, and even be able to pin-point where something might not be functioning so you can repair it ASAP.

 

Watch Jon in this video below demonstrate step by step how to check to see if your sump pump is in good health:

 

 

At Musselman Home Inspection, we like to be a resource for all things home maintenance, and this specific piece of equipment falls into that category. For more information and assistance on any and all things sump-pump, feel free to reach out and we will be more than happy to provide demonstrations, recommendations, and any additional help you might need.

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Should you waive a home inspection?

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The short answer is no. That is, if you want to take one of the biggest risks of your life.

 

Buying a house is no simple task, and it immediately becomes your biggest asset. And in the current market, many are opting to buy without first inspecting the property to give them a greater chance at winning against competing offer. However, without an inspection on the new place you are going to call home, you put not only your funds, but you and your family at risk as well. This brings us to a few questions that may be helpful as you think through this important question, should you waive a home inspection?

 

What is a home inspection? A home inspection is a visual evaluation of your property, that will help protect your financial interest in what will likely be the largest purchase you make in your life. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:

  • Major defects. An example of this would be a structural failure.
  • Things to “Monitor” that may lead to major defects. A small roof-flashing leak, for example.
  • Safety and health hazards, such as bad wiring or undetected mold.
  • Things that may hinder your ability to finance, legally occupy or insure the home.

 

What is the value of a home inspection? Buying a house is probably the single largest investment you’ll ever make. As you consider which home is right for you, it’s important to understand what you are getting at the time of purchase (a factual picture of the good, the bad, and everything in between) as well as the additional funds needed over the course of home ownership to keep your home safe and well-maintained. From costly repairs to dangerous elements that might be hiding in plain sight, you want to be sure that you are covered on all sides. Knowledge about how to maintain your home, as well as understanding how to budget for repairs, will give you confidence and peace of mind as you go through home ownership.

 

What is the risk of waiving a home inspection?

  • An undetected safety or health hazard could go undetected in your home, putting you and/or your family at risk.
  • You move in and soon find out there is a significant issue / repair that must be addressed. You used all your expendable cash on the offer and did not save funds to address the issue. The longer you wait to repair, the worse the issue can get.

 

Why would sellers want a buyer to waive the home inspection? Waiving the home inspection can be more attractive to sellers since there is less likelihood that buyers will find an expensive issue that they will demand is corrected before settlement.

 

Are there any other options that would help the seller say “yes” to my offer without having to waive my home inspection contingency? There are several options to consider. However, each of these options are unique and come with different considerations for the buyer and seller. They should not be taken lightly and can be discussed further with your realtor.

  • The Home Inspection is for “informational purposes only”. In this option, the buyer’s intent is to have a home inspection without negotiating further prior to settlement for additional dollars off the agreed upon sales price. For example, you would still check the box for home inspection contingency in your agreement of sale, but your realtor would also add a sentence under special clauses, “Home inspection is mainly for FYI purposes only”.
  • Home Inspection with a Cap on Repairs. With this option, the buyer still elects a home inspection, but includes a special clause. The clause includes a cap on the amount of money paid by the seller on major issues/repairs mentioned in the inspection report. For example, you would still check the box for home inspection contingency in your agreement of sale, but your realtor would also add a sentence under special clauses, “Buyer will only request major repairs or corrections found in the home inspection report not to exceed $5,000”.
  • Shorten the length of your requested inspection period. This allows the seller to have greater confidence in moving the deal ahead quickly.
  • Eliminate other contingencies in your offer or offer a larger, non-refundable binder deposit.

 

 

I’ve decided to waive the home inspection – are there any other options to give me peace of mind leading up to making an offer? Yes, Musselman Home Inspection now offers a Pre-Purchase Walk-and-Talk. Our inspection team member will join you during the showing appointment to review the major components of the home and any specific items of concern. The Pre-Purchase Walk & Talk service, while not a full inspection, will give you a better understanding of the property in question by having one of our team members walk through the showing with you and point out areas of concern.

 

For more information about us and pricing, call us at (267)-328-HOME(4663) or send us an email to info@musselmanhomeinspection.com

 

Make sure your biggest investment is your safest one.

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