Whether you are investing in residential, commercial, or industrial property, you want to know precisely what you’re getting into before you sign the purchase agreement. Some need more work than others. You will feel more secure when buying your investment property with a property inspector you trust.
Choosing the Right Property Inspector
Some of the things to look for in a property inspector are
- Ethical Standards
You should choose a full-time, professional property inspector familiar with the type of structure you are buying. For example, if you are purchasing a grocery store, don’t use an inspector who has only inspected residential homes. They should perform at least 100 comprehensive inspections annually and carry errors and omissions insurance. This is another key indicator that they are working full-time and continuing to receive ongoing professional education.
Verify an Inspector’s Certifications and Licenses
- A General Contractor’s License
- Certification as a Property Inspector
- Specialized Training
Also, look for sublicenses specific to areas such as roofing, electrical, or plumbing, especially if your proposed property has potential problems in any of these areas. For example, if a property has a history of roofing or moisture intrusion problems, you will want an inspector who’s a general contractor and roofer.
Ask for References
Ask potential inspectors to provide the names and phone numbers of at least ten people who used the company’s services within the past six months. Then, call some of these clients and ask if they were satisfied with the inspection they received and that the inspector acted professionally and ethically.
Transparency Is Essential
Inspectors should allow you to be present during the inspection (if you wish to be), and they should review their findings with you once the inspection is complete. Having this inspection can save you money down the line, as well. For example, if a contractor tries to sell you services you don’t need. Since you should receive a detailed inspection report in writing, you will have the record from the inspection to refer to. It can tell you if that item is something you should anticipate replacing or repairing or if it is in great condition. If what the contractor says doesn’t square with the inspection report, it is time to get a 2nd opinion.
You Get What You Pay for in an Inspection
The price of your inspection often correlates to the time the inspector takes to conduct the inspection and prepare the report. If the inspector only spends a couple of hours at the 15-unit apartment building you are considering purchasing, the report they write up will be insufficient, and your money will be wasted.
Get a Cost Segregation Study Done
When investing in real estate, whether a commercial or residential rental property, it is vital to have a cost segregation study done. Your accountant can use the study results to reduce your tax burden significantly. Find out how much you can save with M&E Cost Segregation.
Get a no-cost, no-obligation estimate today!