Investing Strategies
The Rehabbers Nemesis – How to Handle Home Inspectors
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From Ken Holmes, Fix and Flip Advisor… When I first started rehabbing back in the 1990’s, we didn't have many home inspections. Back then the rule in real estate was “caveat emptor”, Latin for “let the buyer beware”. Buyers would often just buy the house with nothing but a termite inspection, which was required by the lender.
Ah, the good old days!
As the proclivity of suit-happy buyers increased, Realtors began advising their clients to get a home inspection, supposedly to protect the buyer. In reality, the agents wanted this so they would not be sued.
I know one agency that actually had a lawyer on retainer full time, due to so many post sale lawsuits dealing with the condition of the property. With the agent being the “professional that should have known”, they were inevitably drawn in to the lawsuit.
So the agents started recommending home inspections. And if you think about it, it’s basically the agent talking the buyer into paying for a home inspection, which was…
Ken Holmes
Ken Holmes graduated Clemson University in 1985 with a degree in Economics. After spending a couple years as a raft guide and travelling, he began his career in real estate as a residential appraiser in 1987. He went into business in 1993 and has done just about everything possible in real estate. Rentals, lease/options, rehabbing, short sales, owner financing, development, new construction – he has done them all at different times in his career. At present, he focuses mainly on rehabbing without borrowing money via joint ventures. He is a proponent of a debt free, low overhead business. Ken is married and has two boys. He is an outdoor enthusiast and enjoys whitewater kayaking and camping.
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