Zero in on recent repairs
When inspecting a property, remember that “new” is not necessarily good.
New siding might be hiding a badly damaged exterior. New siding makes it difficult to see whether it was installed properly, with underlayment to limit drafts and reduce heating bills.
New exterior grading and gravel around the foundation could indicate a recent attempt to correct basement flooding.
A new basement floor is often an attempt to hide evidence of flooding.
Exceptions to the rule: New windows, a new roof, new electricity and new plumbing are generally not red flags. These updates show an attempt on the part of the seller to update or correct flaws that potential sellers could use as bargaining issues when making offers on the property.
Bottom line: When you see something new, figure out why sellers have chosen this time to make the change. Ask questions. You might get a song and dance or you might get a satisfactory explanation.
Protecting Your Assets
When you are buying a building, whether it is a modest single-family home or an apartment complex with hundreds of units, you are making investing a lot of money. Your investment takes on added importance when you stop to consider that you are also investing money to make more money, expecting that the property will generate rental income or appreciate in value.
You are investing important money. And since your money is on the line, it is your responsibility to know how buildings work.
This knowledge will help you spot potential problems:
• You can spot problems and decide not to buy a building before you call an inspector. That saves both time and money, and heads off legal entanglements ahead of time.
• You can inspect properties side-by-side with the inspectors you do hire, making sure that they do not overlook heating, wiring, plumbing, and other critical systems.
• You can ask your inspector more informed questions and get deeper insights into the building and its potential problems. If you see signs of a leaky basement, for example, you can ask the inspector what he or she believes the problem is, and how much it would cost to correct it. If you do not recognize a leaky basement when you see one , you may be incurring too much risk.
In short, when you have the knowledge you will gain in this chapter, you can have a well-informed idea of the property’s problems and the potential cost to repair it before you make your decision to buy or not to buy.
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