Professional inspections aren’t cheap and many of them charge between $75-$150.00 per hour for their time, depending on their specialized skills and experience. However, this initial investment can save you a considerable amount of money in the long-run, particularly when it comes to buying fixer uppers as an inspection will enable you to spot potential problems before you get stuck with them.
Still not convinced? Consider the case of Mark and Tom. Both are experienced fixer upper investors working with a renovation budget of $2000. In Mark’s case, he decides to forego the $350.00 inspection in order to buy new carpet for a prospective property. On the other hand, Tom decides to purchase the inspection and cut back in other areas, like choice of flowers for the garden. The result? Mark saved a bit of money upfront but he purchased a property with a cracked foundation that resulted in major work of $10,000 to fix. Whereas Tom’s inspector discovered the cracked foundation before he purchased it and was then able to buy the property for $15,000 less than he initially planned to offer with seller to give him a refund of $5000 upon closing. He then took the profits from the purchase, was able to fix the cracked foundation and pocketed an additional $5000.
Therefore, always make sure that you get an inspection, like Tom. That is, any offer you consider should always be contingent upon a satisfactory and thorough inspection, with this being made perfectly clear right at the beginning. That said, you may be wondering, what is covered with an inspection?
During an inspection, the professional inspector will begin with the foundation, crawl spaces, attics, etc. He will evaluate it to make sure there are no major cracks or structural issues to be concerned with, as well as looking for the presence of mold or mildew. If there's wood on the premises, which there most usually will be, an inspection for termites and the like is also in order, as well as a complete examination of the roof, the wiring, and the plumbing. He will also evaluate the grounds (sidewalks, driveways, retaining walls, patios and covers, decks, and fences), exterior (stairs, walls, trim, sprinklers, faucets, gutters, etc), all appliances, and much more. In essence, he is evaluating these to make sure there are no major issues that might cost you money in the long run.
In conclusion, an inspection of a fixer upper that costs a few hundred dollars as the real potential to save literally thousands of dollars in the future, not to mention a considerable amount of headaches. Therefore, if you’re seriously considering purchasing a fixer upper, you should definitely purchase one to protect your investment and save you from unnecessary expenses.
Sal Vannutini is the author of " The 8 Power Profit Secrets To Making More Money With Less Risk In Real Estate, " a free strategy report for investors. Get your complimentary
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