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Investing Strategies

The Rehabbers Nemesis – How to Handle Home Inspectors

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home inspectionFrom 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…


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