Inspectors refusing to inspect bldg -- bldg has bad rep?!

Multi-Family and Apartment Investing
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Inspectors refusing to inspect bldg -- bldg has bad rep?!

Katrina P.
Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes

Hi everyone, need some input. I am considering a small multifamily that apparently had a bad bed bug problem in 2012, at which time, the current owner vacated the building and spent $7k heat treating. Since then, he has maintained a regular bed bug prevention program. Here's my dilemma: during my due diligence period, I have scheduled the inspection twice. First inspector pulls out without explanation; second inspector emails me yesterday saying "sorry, I have to renig. Word has it that this bldg is a mess and has a bed bug problem and it just has a bad reputation in the inspector's community." So i call him and he reiterates the same thing over the phone, and suggests that I contact someone out of the area who doesn't know about the building to inspect it. So now, I am questioning should I go through with the purchase? I have never heard of such a thing!! And it's raising a major flag for me. So has anyone ever gone through this? Any advice?

Thanks!!

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Tom MolePro Member
Investor · Sunland, CA · Member since 2013 · 260 posts · 240 votes
10y

Hi @Katrina P.

Have you considered that the inspector may not be afraid of the bugs as much as he may be afraid of the liability. If he tells you that there are no bedbugs, which is damned hard to determine with any degree of certainty, then you find the infestation persists, he could be held accountable for your problem.

You might talk to the inspector to determine if this is his real issue. He may be willing to inspect for everything else as long as he can get a waiver for any liability against this specific issue. You can have an actual pest guy inspect and remediate. Those guys are the experts in this arena.

I'd love to hear how this turns out for you.

Cheers!!

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  • Austin Youmans
    Investor · Vancouver, WA · Member since 2014 · 359 posts · 143 votes
    10y

    It is amazing they can just choose not to do their job.
    I had this happen to me with a mold issue which was super minor but still couldn't get the inspector in there.

    I have never dealt with bed bugs but I would not let it scare me off from a good deal. You are probably getting a good deal because no body wants to deal with it but it does not mean it isn't worth it. I would keep going but make sure the inspector does a thorough job.

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  • Katrina P.
    OP
    Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes
    10y

    Thanks Austin!

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Katrina P.,

    Any one that squeamish is not likely to do a good job in their inspection.

    They're also too closed-minded to consider that the property may have improved since those rumors, etc. were true.

    Good riddance.

    My $0.02...

    David J Dachtera

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  • David Cook
    Real Estate Investor · Nashville, TN · Member since 2014 · 78 posts · 44 votes
    10y

    Have a reputable pest control professional inspect the home for bed bugs prior to the inspection.  One with a bed bug dog would be ideal, if there is one in the area.

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    10y

    I do not enter homes that I am aware have bed bugs either.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    WHY would an inspector go into such a place for a normal fee they charge? They have ZERO motivation to do it.

    Unless you are paying double or triple the rate then money talks. If the inspector can simply do another job where they are not going into a dump of a property with fleas,bed bugs, and who knows what else then you really can't blame them.  

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  • Katrina P.
    OP
    Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes
    10y

    Thank you for all the input, as usual, guys!

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    10y

    @Joel Owens,

    Most mature professionals chalk such things up as "occupational hazards".

    Can't take the heat? Stay outta the kitchen.

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  • Tom MolePro Member
    Investor · Sunland, CA · Member since 2013 · 260 posts · 240 votes
    10y

    Hi @Katrina P.

    Have you considered that the inspector may not be afraid of the bugs as much as he may be afraid of the liability. If he tells you that there are no bedbugs, which is damned hard to determine with any degree of certainty, then you find the infestation persists, he could be held accountable for your problem.

    You might talk to the inspector to determine if this is his real issue. He may be willing to inspect for everything else as long as he can get a waiver for any liability against this specific issue. You can have an actual pest guy inspect and remediate. Those guys are the experts in this arena.

    I'd love to hear how this turns out for you.

    Cheers!!

    1Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    I bought a property in WA in the early 90's that nobody wanted to buy because they all hated the guy who owned it lol.  Small town area.  I drove by that place for a year, while saving up to buy something.  When I finally had enough money to start looking to buy, I went ahead and made an offer on the place.  The guy was definitely a jerk.  But, there was nothing wrong with the property.  And because it had sat there for so long, I got a decent seller financed deal, too.  I made all my payments via certified mail, signature required, because I didn't trust him lol.  But, I made some improvements and sold it just a few years later at a nice profit.

    So, it wouldn't stop me from checking it out, either.  I agree to get the pest control guy in there first, and if that checks out, hire an out-of-town inspector.

    And then, watch all the silly people in that town kick themselves for not buying the haunted house lol.

    I got those 2 acres with 600 feet of highway frontage for $16,000 and after adding a gravel driveway, some fencing, septic, well and electricity for a total of about $7,000. Then, sold some trees for about $3,000, so my outlay was actually about $4,000 for improvements.  And lived on it in an Airstream trailer for a couple years, then sold it for $47,000 to the guy who lived down the road who also happened to put in my septic system.  Kept saying he should have bought it from the jerk, but dang how he hates that guy... :-)

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  • Tom MolePro Member
    Investor · Sunland, CA · Member since 2013 · 260 posts · 240 votes
    10y

    @Account Closed should be thinking about how much less she should offer since no one is willing to inspect this place. A bad reputation is a marketable commodity!

    So, Katrina, go back to your seller and ask him how much of a discount he's offering you to buy despite the proven fact that no one is willing to inspect this property. And don't even think of smiling when you ask. If you can keep in mind that this reputation deserves a discount in the price since it involves you taking a greater risk and you do it with ultimate in confidence, you just might get a reduction. It's worth a shot.

    Cheers!!

    1Reply
  • Katrina P.
    OP
    Investor · Randallstown, MD · Member since 2010 · 185 posts · 57 votes
    10y

    Hey @Tom Mole ...Spoke with the inspector...it isn't a liability issue.  He just doesn't want to possibly be exposed to any bed bugs.  The place has been treated, preventatively, on a regular basis since the heat treatment years ago.  And the agent even forwarded me the latest receipt from the latest treatment from the company, certifying that there were no bugs.  But hey, can't convince anyone to do what they don't want.  And like @David Dachtera said, at this point, I wouldn't want them to do it, because I wouldn't expect a thorough job.  So onto the next... And @Tom Mole , thank you for the suggestion to ask for a discount.  When should I do that?  I have tried once more to schedule an inspection, hoping this one works.  But should I go back to the seller now, and ask for a discount, even though I still plan to get an inspection?  Another thing is the previous buyer who walked, had an inspection done, paid $850, and offered to sell it to me for $700.  I told my agent no thanks....not interested in paying $700 for a second hand inspection.  Would rather go through and get my own done.  I thought that guy would sell it for maybe $100 since its useless to him at this point.  But whatever. lol  

    Thanks, as always, everyone!  You're truly the best!

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