Home Inspector Interview: Why You Need One During Due Diligence!
What does a home inspector do? What sort of process does he/she follow? Who should use one? Well, the answers to these questions are found in the home inspector interview above. A home inspector is vital to the due diligence process. Simply stated, due diligence is the is the final inspection process when you are purchasing a property. It is the time period after you have an accepted offer on the property and the moment before you sign the myriad of dotted lines and receive the shiny keys from the seller or Realtor®. This is your final opportunity to back out of the deal or get issues on the property corrected via price reductions or last minute repairs.
Ahh, due diligence. Even the words sound boring and tedious. You go through the excitement of finding a great property, you end up with a great deal, and your offer is accepted. The euphoria and thrill of the hunt subsides as you reach the due diligence phase. This is perhaps the most important phase of your investment purchase process. No matter how great your deal is, if the property is distressed, you will lose money doing excessive repairs.
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Enter Tim Stolba
Here’s the best news of all. You don’t have to go at this alone! A home inspector is a critical member of your investing team and is vital to the due diligence process. In the video above, AssetRover CEO Jeri Frank talks with Tim Stolba, Owner at Prime Time Home Inspections.
What you’ll find out will be eye opening. What if you have a buddy or relative who is a contractor? Do you really have the experts on your side and is a contractor a replacement to a home inspector? Tim doesn’t think so and you should be wary of this!
“I’ve been in houses that, you know, they say that my relative is a contractor, this or that, and usually when they say that, it kind of opens my eyes even more to look for things because those are the ones I usually see the most items on. Even a general contractor doesn’t have first hand knowledge of every kind of component and how it’s put together.” – Tim Stolba
Better yet, Tim has solid examples of situations where contractors had limited experience on the properties.
“I had a house recently, the house was 3 years old and built by the contractor that lived there. They lived in there with their family and I’m inspecting their house and the smoke detectors were never wired for power. He told me that he was wondering why the batteries were always going dead so fast, and that was why–never wired for power–and he lived in the house. I’ve had other houses where the contractor lives there and has had hail damage and they didn’t even know that, and they’re the ones who built the house!” – Tim Stolba
Of course, some contractors are true experts, but Tim makes a valid argument that home inspections should typically be left to the home inspectors. It really is all about specialization. The home inspector’s craft is inspecting homes and getting into every nook and cranny. This is what they do!
“I get in crawl spaces and all kinds of fun places that most people wouldn’t venture to go to.” – Tim Stolba
One unique benefit Tim provides is his experience with rental properties and flipping houses. If you can find a home inspector who is a savvy real estate investor, your team member provides a double whammy in benefits. “I flip houses on the side, so I just have a lot of first hand experience, not just textbook,” says Tim.
Don't forget to check out our free rental property calculator. This will be a valuable tool in your arsenal as you analyze your existing or potential rental properties. Benefits: Thank you for your ongoing support. happy investing! Happy investing! – – – –
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Before you leave:
Disclaimer: The information presented does not consider your particular investment objectives or financial situation and does not make personalized recommendations. The information provided is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, AssetRover, Inc. recommends consultation with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.
Don't forget to check out our free rental property calculator. This will be a valuable tool in your arsenal as you analyze your existing or potential rental properties.
Thank you for your ongoing support. happy investing!
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