Inspection Checklist For Real Estate Investors
Inspection Checklist For Real Estate: Imagine you move into your new home and the roof starts leaking during the rain, or there are cracks on one of the walls of your living room. To avoid such incidents, it is always wise to inspect your real estate before spending hundreds of thousands of dollars to buy it.
Most people know that the home inspector inspects homes for buyers and sellers. A lesser-known inspection is called the ‘draw’ inspection. This type of inspection is provided, as part of a construction loan, for banks and other financial institutions.
If you have never heard the term ‘draw inspection’, here is a brief description. The draw inspection is one type of inspection that is frequently performed by a home inspector. While not as common as residential home inspections for buyers or sellers, the draw inspection is done for the benefit of a lender. When banks, and other lenders, make construction loans, they need to confirm that funds are being paid out, and the work is being completed, in a timely manner.
To protect themselves, and their investor’s money, these institutions will contract with inspection firms to give – usually on a monthly basis – updates on the progress of the project. It works like this: The builder turns in to the lender paperwork, stating what work has been completed and requesting the funds that he or she expects to have ‘released’ to the company account. The draw inspector is then called in, on the bank’s behalf, as an impartial party to see that said work was really completed by the builder.
The draw inspector will assess the progress and take photos of various systems and components: footings, foundation, power hookups, landscaping, siding, roofing, trusses, floors, etc. Really, if you can name it, and the bank has budgeted for it, then the inspector will probably be asked to look at it during one or more of the draw inspections that take place over the — usually several — months that the home is being built from the ground up.
Doing The Inspection On Your Own
It is best to do the inspection on your own in order to get a better price for the real estate. You need not learn the technicalities of building to check out errors. Anybody can figure out if the home needs repairs, or if there is something wrong with the drawers and sinks. Moreover, bring along a professional home inspector. Inspecting on your own helps in negotiating with the sellers regarding the flaws.
Checklist for Home Inspection
It is a good idea to keep a list of things that you must check while looking around the house. Make notes of the things that are wrong. Do not depend on your memory in this case. There are numerous things to check. You may find too many flaws to remember without a checklist. Your checklist and notes will help you during negotiations with the real estate seller.
HUD’s Handbook, illustrating the minimum housing property standards, comes in handy during the inspection. You can order the handbook online. The HUD Direct Distribution System gives it out for free.
An Example Of An Inspection Checklist For Your Home
1.The position of the propane tank.
2. Waterlogging spots around the house as well as the drainage system.
3. Trees and other plants that are posing a hindrance.
4. The condition of the paint.
5. The condition of the roof, chimneys, and pipes.
6. The alignment of doors and their locks.
7. The windowpanes and glass.
8. Cracks in the foundation and the height. These help to avoid the threat of harmful insects creeping inside the house. Cracks larger than 1/8 inch are a warning sign.
9. Condition of the driveway.
10. The support of the porches, their paint, and the porch boards.
11. The doors and ventilation of the sheds.
12. Electrical fixings.
13. The sturdiness of the fences.
Places To Check
Inside the rooms, you should inspect the walls, ceilings, and floor for visible cracks. Check the cabinets, bathrooms, drains, fireplaces, faucets sinks, and lights. Check the garage too. Take your time and inspect every detail of the house. It is you, who must live in it.
Remember, real estate inspection serves as a tool for negotiating the price with your seller. Do not sign any document before the inspection. Dig out as many flaws as you can and present them to the seller to get a fair deal.
What Is An Investor Inspection?
How Do I Prepare For A Home Inspection Checklist?
- Clean furnace filter.
- Clean stove and oven.
- Empty storage from the attic.
- Organize any closets that are access points to your attic or crawl space.
- Clear at least 4 to 6 inches of space around the perimeter of your home’s exterior.
What Should I Look For In A New Home Inspection?
- Roof. The condition of shingles or other roofing material is checked, as well as any vents, chimneys, rain gutters, or other items.
- Structural Elements.
- Plumbing and Electric.
- Heating and Air Conditioning.
- Basement and Garage.
- Outside Property.