To inspect or not to inspect

[Pouyan G.]

I recently got under contract for a wholesale property in NC.  My realtor walked the duplex property and gave me a good visual of the property.  I'm in my due diligence phase with 3k emd already in and I'm wondering if it makes sense to pay for a home inspector?  

The property is under contract for 100k and I'm getting quotes for 1k to inspect the property which seems excessive but that's what I'm being told for a 2 unit property.  Would it make sense to send an inspector to see this place at this price point once emd has been sent?  What would you guys do?

[Leo R.]

@Pouyan G.  I NEVER buy a property without completing the following items:

1. initial thorough in-person inspection by myself and my agent (who is also an experienced inspector). We go into the crawlspaces and look at things like: foundation condition, signs of water intrusion, HVAC condition, asbestos, plumbing type & condition, roof condition, windows & doors, etc. We also make note of any paint we suspect to be LBP. In a nutshell, we look for anything and everything that would have a significant cost to repair/remediate. If your realtor doesn't understand how to spot these items and doesn't understand the costs of repair/remediation, they're not experienced enough to support a legitimate real estate investor, and you'd be well-advised to find a more experienced agent.

2. main inspection by an experienced, licensed/certified home inspector --a lot of this ends up cross-validating what the initial inspection revealed, but in some cases the main inspection has revealed items that we missed on the first pass, but which would have cost me tens of thousands if not spotted during the main inspection.

3. scope the sewer line to inspect its condition--this can easily end up saving you tens of thousands.

4. meth test.

A lot of inexperienced people skimp on the DD (often because they're too cheap to pay for the inspection services). I've known people who refused to pay a couple hundred for a sewer scope, only to end up with a $30k bill to remove the driveway and replace the sewer line.

...I've been in REI a while and have seen the good, the bad and the ugly. Personally, I would never, ever buy a property without completing the aforementioned items (except perhaps in very rare cases where the deal requires a quick cash close, and the price is such a steal that no unanticipated repair could ruin the deal).

Good luck out there!