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Inspections are key in flipping homes. When buying an investment property, you want to know any potential issues that may arise from the initial inspection to ensure that unforeseen issues don’t eat up more of your budget. Conversely, you want to make sure you are prepared for inspections when selling the flip to a buyer so it doesn’t stay on the market longer and delay closings. Here are some tips to make sure your property is flip ready.
The inspection when you purchase the flip:
When scoping out investment properties to buy, the use of drones can help spot problems before you even decide on a property and get an inspection. Additionally, sometimes roofs are too high to access or too wet and dangerous at time of inspection sometimes causing the inspector to have to recommend another third-party inspector or roofer just for that purpose. Using a drone in advance can save you the headache of recognizing any extensive damage or issues ahead of time that may make that property not even worth it for you to consider as a flip. Some inspectors are also using drones as a part of their business practice, so you may want to consider hiring an inspector that uses drones when necessary.
As an experienced flipper you may be tempted to skip hiring an inspector all together and do the DIY approach, but you could be missing crucial information that will cost you much more down the line. You don’t want any unforeseen problems that you have not accounted for in the cost of your renovations. Schedule that inspector and do your due diligence to save yourself time and money later.
Inspections when selling your flip:
Consider getting a pre-inspection report that can lessen the time your flip stays on the market and answer questions that potential buyers may have in advance. Having that pre-inspection report gives buyers a confidence that the property is in good shape against those properties sold by homeowners who have kept the home in good repair throughout the years living in it. Having that report also gives buyers using traditional financing a clear outline that it is qualified for traditional financing and there should not be any unforeseen issues preventing a smooth closing process.
Another headache-saving tip is to make a checklist of items to check-off in order to ensure that your home will pass with flying colors.
Items you may want to include on your checklist include:
- Are there any trees with issues such as sick or dying trees or leaning/rubbing against the house?
- Are the gutters secure to the home?
- Any leaking faucets or clogged drains?
- Are the hand railings up to code?
- Is there any standing water on the property?
- Ensure all decking is sound and no loose boards or loose railing.
- Do all light fixtures and lightbulbs work?
- Utilities are all turned on so the inspector can test all of the appliances
- Have all keys handy for the inspector for anything locked.
- Ensure all crawl spaces are clear to enter as well as the attic
For more details on home inspections check out the American Society of Home Inspectors.