Home Inspections - Posted by Jess

Posted by Jess on July 28, 2003 at 14:01:22:

The reason that I am a little freaked out that he’s selling so far below market is because we are in a huge seller’s market right now and, in talking with him, he does not seem to be a “motivated seller” at all. Outside of the fact that his house is somewhat beaten up, he doesn’t really seem like a don’t-wanter.

I’m continuing on with the deal (offer was accepted, but contracted has been signed yet), and I’ll keep everyone posted.

Home Inspections - Posted by Jess

Posted by Jess on July 28, 2003 at 13:11:27:

How necessary is a home inspection?

I took an ex-contractor friend through a rehab prospect to get an estimate, and he didn’t see anything majorly wrong with the place, yet in a market in which houses are selling in literally 8 days this one’s DOM is 77. My estimate came in at $10k, and the guy is selling (through MLS) for $45k below market… and it’s kind of freaking me out.

What are some of the things that a home inspector could uncover that a knowledable contractor can’t?

Re: Home Inspections - Posted by Marcos

Posted by Marcos on July 28, 2003 at 13:38:38:

I think many home inspectors are decent to good. I find they tend to specialize in certain things, and miss other things. It’s kind of a hit or miss thing though on who would be more useful, a home inspector or a contractor. If youw want someone to crawl up under the house to check out all the flooring, your contractor generally isn’t going to do that. But, your home inpsector can tell you that your flooring needs to be completely replaced under a bathroom(which in your mind is a $1k+ job), and your contractor can tell you how to fix it in an hour for $150.

So, I think having both especially on your first property WHEN YOU HAVE IT UNDER CONTRACT, would be good. But, don’t pay for a home inspection prior to getting it tied up.

I would ask a few questions of you though. Why does the fact that he’s selling it below market freak you out? You do realize that people sell for many different reasons right? While your contractor friend may have said he could do it for $10k, perhaps the retail cost to the public might be closer to $20k. Many home buyers don’t want that kind of work, only an investor will touch it. The other thing I might have to ask, is how sure are you of your value. How sure are you that it’s worth $45k more? How much are you willing to bet that if you bought this property, put $10k in it, it would sell in 8 days for $45k more than you bought it for? Just be absolutely sure that you’re clear on the value.

Hope this helps,