Dallas-Fort Worth Real Estate Investor Club

Green Tag Inspections
Kent Keith
817-705-3200

Sellers may not want you to inspect their property prior to making an offer since it may reveal some defect unknown to the seller.  I suggest you put in your offer based on all the work that you think you will do, and build in a little contingency for the unforeseen.  If your inspection indicates that you've offered too much, you can submit an amendment to the contract as long as you're within the option period, or you can terminate the contract.

If you're unsure of how to examine and diagnose the condition of the property on your own, take along an experienced investor or your general contractor.

If I am buying a home to rehab and resale in the retail market I would get an inspection after I have an accepted contract to purchase the property. I would use the inspection report to go back to the seller during the option period to negotiate repairs and/or a reduction in the sales price of the home. I would remind the seller since they have a copy of the inspection report they are now aware of all the latent defects of the property and will be obligated to disclose those defects to the next buyer should I opt out of the contract. Along with the regular home inspection I would get a termite inspection if the home is more than 10 years old. Over the past 30 plus years I have been in thousands of homes and have been with home inspectors on hundreds of inspections. Even though I have an eye for seeing evidence of termites I would get the termite inspection done and again use it to get termites treated if termites are found or ask for a reduction in price. Experience taught me once when I bought a multifamily dwelling and I thought I would forgo the termite inspection that I should have had a termite inspection done. The next spring the termites began to swarm and I was out the cost of a termite treatment which if had been caught when I bought the property I could have had the seller pay for the treatment.

If I am going to wholesale a property to another Real Estate investor I would not get an inspection if I am going to assign the contract.

When I am selling new construction I always recommend to my buyers to have a home inspection done. The inspector always finds enough items that need to be corrected to justify the cost of the inspection. It certainly gives the buyers piece of mind about their new home.

While we are on the subject of inspection. One tool to use when selling a home is to offer a Home Warranty and to sign up for the “Seller’s Coverage” with the warranty company during the listing period. Often when a seller has the “Seller’s Coverage”, items found during a buyer’s home inspection such as A/C, plumbing or water heater issues maybe covered under the Seller’s portion of the home warranty. So instead of you, the seller having to pay to have items fixed you only pay the service call for the home warranty to have the items repaired or replaced. The “Seller’s Coverage” is only about an additional $75 and is payable at closing.

The Home Inspector I use on properties I purchase is:
Danny Smith of Semper Fi Home Inspections
(682) 351-2267

The home warranty company I use for Home Warranties on properties I purchase is Old Republic Home Protection