Thursday, April 20, 2006

Interesting Situation. What to do?

A was talking to a client today about an investment property and he had asked if he really needed a property inspection since the seller already had one performed. He really didn't want to spend the extra cash to the tune of about $250, and besides he is getting a great deal anyway. The inspection document he had received from the seller looked ok, a few things here and there, but nothing to be overly concerned about. The inspection was done within the last month.

The house in question by the way, appears to be serviceable, not bad, not great, and mostly cosmetic items that would need to be corrected. You know, new floor coverings, all new paint, new appliances, countertops, etc. Estimated cost of repairs would be about $10,000 to $15,000. Once the repairs are to be made, the buyer would stand to profit about $10,000 or more.

So why go to the expense of spending another $250 for the same result? Easy when you think about it. My investor is about to spend thousands on a sure thing, already has an inspection in hand, and knows what it is going to cost to improve the home. But, since he did not hire the inspector, that individual does not work for my buyer and moreover, the buyer has no idea who he is, what his credentials are, and his level of expertise. I strongly encouraged my client to pay the $250 which he did reluctantly, and come to find out there was at least $3,000 in termite damage that the other inspector failed to mention. Was it an oversight? An error?

Actually, upon a careful look at the seller's original first inspection, there is no name or company who did the inspection anywhere to be found. No one to contact, and as far we know the seller did it themselves.

Always, always, always have a home inspected by someone that you have paid for and chosen. Yes, it is an expense, but one that could save you thousands of dollars and hours upon hours of headaches. Sometime everything looks ok on the surface, but the sure deal is not always as sure as one hopes.

Check out my previous posts and Video Podcasts of the "5 Biggest Mistakes Buyer's Make".

Paul Dizmang

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