A real estate investor may choose to forego having a property inspected for a variety of reasons. Whether it’s to expedite the closing of the deal, to save money, or it simply takes too much effort, it’s easy to find an excuse to bypass this important step.
However, any smart investor should be sure to have any and every property inspected before seriously considering placing an offer on the property. Waiving an inspection presents a plethora of potential issues that could be seriously harmful to the value of the property. Consider these risks before choosing to neglect getting an inspection on a property that you are thinking about investing in.
Structural Issues and Illegal Alterations
First and foremost, inspections often reveal severe structural damage and/or illegal alterations made to a property.
Common structural issues include a damaged roof or chimney which can lead to leaks, rotten wood, damaged foundation, and more. These issues can be extremely costly and can take quite a while to fix. Even if the repair costs aren’t a major concern, the time it takes to fix these issues can prevent you from flipping the property as quickly as you want to.
Additionally, homeowners often make alterations to their home which are not completely legal. For example, a family might make renovations to their garage to turn it into an entertainment room. However, they might not obtain the necessary permits to make certain alterations legal. This can be a hassle to deal with and can leave you to deal with the legal ramifications if you don’t discover these issues before purchasing the property.
Aside from structural issues, an inspection can reveal some fairly serious health and safety risks.
Dangerous mold, carbon monoxide leaks, radon, asbestos, bug infestations, and more can be detected by a professional home inspector. By neglecting to get a home inspection before investing in a property, you could potentially sell the property to a family without knowing about the serious health risks that they will be facing.
One of the biggest risks investors take by waiving a home inspection is the potential loss of leverage. As an investor, you’re likely always searching for the best deal and trying to negotiate the best price available.
When an inspection reveals issues, whether they are cosmetic or more serious issues, it can be a tremendous hassle to deal with. On the other hand, it can grant you significant leverage. If an inspector finds issues which will be costly to fix or will take a long time to remedy, you can us that information to negotiate a much better deal.
Home investors sometimes choose to bypass getting a home inspection for numerous reasons. Home inspections cost money, can delay the negotiation process, and can take quite a bit of effort. However, if you choose to waive a home inspection, you are opening yourself up to a number of potential issues which can be costly and even dangerous. Consider these factors next time you are considering waiving a final property inspection.