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First flip - next question

1,632 Views | 9 Replies | Last: 6 yr ago by valtosca
aggiebrad94
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AG
Realtor is suggesting I get an inspection on my flip prior to listing it. That way my contractor can fix any issues potentially cheaper than if it was under contract.

1) Good or bad idea?
2) Any Aggie inspectors in San Antonio that you know of?

Looking to move quick from here as the home should be on the market by next weekend.
dallasiteinsa02
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Bad idea. You have to share any inspections done on the property within the last four years with a buyer. Your realtor is an idiot.
dallasiteinsa02
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Since it is a flip, that will include your inspection whem you bought. I would provide a narrative or receipts for everything on that inspection and how you fixed them.
jmazz
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AG
It's possibly stuff you'll end up fixing one way or the other so might as well let the buyer pay for the inspection. I can't count how many houses I've been a part of 'flipping' but we've got one right now that we remodeled from head to toe (pretty much) and there was still a laundry list of 'stuff' on the buyer's inspection. Some we agreed to take care of. Some we didn't. It's not necessarily a terrible idea (your Realtor is not necessarily an idiot) but I would probably just wait and let the buyer have an inspection done and see what they propose, if anything, after the inspection.

Edit to add...what's the price of repairs matter if the house is under contract or not? It's a vacant house either way. Cost of repairs should have nothing to do with the status of the house (off market, on market, contract pending, etc).
Baba Ganoush
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AG
jmazz said:

It's possibly stuff you'll end up fixing one way or the other so might as well let the buyer pay for the inspection. I can't count how many houses I've been a part of 'flipping' but we've got one right now that we remodeled from head to toe (pretty much) and there was still a laundry list of 'stuff' on the buyer's inspection. Some we agreed to take care of. Some we didn't. It's not necessarily a terrible idea (your Realtor is not necessarily an idiot) but I would probably just wait and let the buyer have an inspection done and see what they propose, if anything, after the inspection

This. Let the buyer pay for it and then negotiate what you will/will not fix.
jt2hunt
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AG
My personal flips, i have never done this.
I had another client, who got an inspection report when they bought the flip property. We bid based off this report and her personal preferences. She would have that same inspector come out and we had to be 100% before the final draw was paid. This report was given to the potential buyer. It worked well for her and we did 3 flips this way in Austin.
jmm6345
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voorheesdn
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AG
Good idea. In a sellers market it helps insulate your sales price from buyer wanting to just get under contract then beat you up after investigation.
aggiebrad94
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I think the reasoning is that if I do the inspection now, I can my contractor and his guys to fix anything. If the buyer does it, it may require a licensed electrician, plumber, etc.
aggiebrad94
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AG
Also - any good Aggies do inspections in San Antonio?
valtosca
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aggiebrad94 said:

Also - any good Aggies do inspections in San Antonio?
I'm a Realtor in San Antonio and I would recommend James Cancino with Lighted Path Inspections. (210) 204-9240 He's not an Aggie but he's a very good inspector.
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