The next podcast for Smart Real Estate Investing is here!
Curious about the cost of a pre-listing inspection on your property? Today Marcia and I talk about what goes into it.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Smart Real Estate Investing – Part 2
René Nelson: Marcia in the show yesterday, we talked about doing an in inspection if it’s an estate or even if it’s a property that you live in, doing an inspection prior to putting that on the market. Let’s talk about that real quick. Do you recommend sellers do that?
Marcia Edwards: Well I like it because there is a vulnerable spot after you’ve got the offer you’ve chosen in hand and all the buyers have left, the other buyers behind that offer, with the exception of maybe you have a backup offer. They’ve left, gone away and now you’re going to get inspection started. The inspection start at that point, you’re vulnerable as a seller that they’ll discover something and say, “I should have known this, but the carpet was stained, I knew it was stained or sealing in heat, but I did not know that the zinsco panel was there and that that meant that it was an obsolete and dangerous part of the electrical system, and I need that replaced.” So the discovery later is expensive, and you don’t have the alternative of going to a plan B offer so easily.
René Nelson: Okay, so let’s also tell the listeners, ’cause for a lot of people, they probably have no idea, what does a whole house inspection cost, just a ballpark, and what does a termite and dry rot inspection cost?
Marcia Edwards: They package those generally, there are very few companies that will do just the dry rot inspection report. So I’d say it’s $500 to $750, money well spent. Think about it, if you’re a buyer and you had a reputable inspection in-hand about the house you’re purchasing, you could come in more prepared to be realistic out of the gate and the offer understand the condition. Even if the condition says something significant, like there’s a roof problem, you could get a bid as a seller on the roof before putting it on the market, so that it’s out there, and the more they know on so that they can screen themselves prior to taking the home off the market, the better.
René Nelson: I definitely agree with that, and I see that in apartment complexes. When I’m representing a seller, I’ll ask them, “What’s the age of the roof?” And they’re not sure, we’ll get a roof bid. Because roof bids in particular for apartment complexes can be all over the board, so I want just at least a mid-range one so I know a rough number.
Marcia Edwards: And you probably have a challenge with all the units you have to propose that they purchase when you can’t get into all those units.
René Nelson: It does make it very difficult. The other thing that I try to do, obviously, is we’re trying to be low-key so the tenants don’t ask a lot of questions and get rattled and concerned that their rent is gonna go up, so what I typically ask a seller is, “Show me your two oldest units, and show me your worst unit and then show me the last one that you just have rehabbed recently.” Whether it’s paint and carpet, or show me the newest tenant that’s moved in, so I like to see at least four units.
If you’re looking to part with your investment property, René can help you make the most from your property’s sale. Schedule a 15-minute discovery call to better understand your investments and the market today.
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