Congratulations, you know what they say “showing up is half the battle”.
In my previous posts I referred to craigslist, for sale by owner and other sources I’ve used. The problem with these sources is that they are not hidden deals anymore, they are already published and available to Millions of “looky loos”. Hidden deals are sometimes hard to spot, sometimes they are right in front of your nose. There are a lot of really skilled people out there, looking for these deals and making good money. For starters, keep your eyes open when driving to work, your favorite bar or the gym. You will see houses that are vacant or boarded up. If you don’t see a Realtor sign, you should go on your computer, check the County assessors’ website for property and owner information; also use Zillow. If you don’t have the exact address, you have to think outside the box, ask somebody. Sometimes the mailman can be a great source of information, also your friends. Neighborhoodscout.com offers good info, but they charge for it. Another possibility, damaged properties. Sometimes the owner is financially not able to do the repairs, or just lost interest. Have you heard about tax sales for foreclosure properties? Not so nice but …. divorce can change a situation and people want to move on, same if a death occurred and the relatives live out of State. Most of the so called good deals have a big problem. Sometimes it’s the condition of the house, that’s why you need a home inspector – call me, sometimes it’s the crime rate or it’s just like the current owner needs cash now. If you want to get a really good deal you need some cash on hand to pay for the property, a down payment or for repairs, back taxes, closing costs etc. The hardest part is not finding a hidden deal, it is closing the deal. Do your background check of the current owner and his situation. Try to understand his situation. These are just a few tips. If you want to get really good in this, you need to be trained by someone who’s really successful as a Real Estate investor. You find classes and training opportunities all over the Internet. I attended some, but I won’t endorse a specific one.
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I’m my best Realtor.
First, the definition of a Realtor: A Realtor is a person who acts as an agent for the sale/ purchase of buildings and land for the highest possible price in the shortest period of time. I’m sure you caught it, there are basically two categories of Realtors. The sellers’ Realtor and the buyers’ Realtor. Both of them usually get a commission that’s based on the sales price. I like being my own Realtor, and I bought, sold, flipped, renovated and rented many objects. Since I’m a home inspector I know a little bit more about what’s involved with Real Estate than the average person. So, if you know nothing about Real Estate, do NOT try to buy or sell without good assistance. What actually are the benefits of doing it on your own? You know what you want, what kind of home you are looking for, or how much money you want to get in case you’re selling. Most times your heart takes over common sense. Be careful, and if you have any doubts, ask for help. Direct legal questions to a lawyer or title company. Get a home inspection to find out about the condition of the object; talk to a financial advisor, and of course use the Internet to collect information, like crime rate, job opportunities, future developments, comparisons, and tax; check “for sale by owner”, they have really good tips. Too many times I’ve heard that you save the high Realtor commission when you do it on your own. That’s possible, but consider that if somebody assists you, you spend less time. They have some expenses to find objects or the right customer and they spend many hours doing this. There are phone costs and driving, if you do it on your own, this is all on you. Most of the available Real Estate is under contract anyway. How to find possible hidden deals, just read my next post. I’ll tell you what worked for me. An article brought up old news. It was about why home inspectors are being sued. It states: “in the recent past thousands of home owners brought lawsuits forward for soft inspections done by home inspectors who they claim are biased towards selling the house on behalf of the Realtor who got them the lead”. Yes, this is reality. But I’m sure many home inspectors and Realtors are not participating in this crooked game. I don’t make “soft inspections”, I report what I discover – the good and the bad. Does it hurt us? Yes, badly!! But not as bad as it does a home owner who overpays for a lemon. Working with Realtors is not easy and unfortunately, these days it is not about service or your qualifications; efforts to provide a better service to the actual client are being ignored or blocked. Last year I tried to establish a new relationship with a Realtor here in TN. I stopped by and explained what I do and the quality of my inspections; but in the end, I was asked about “sensitive report writing”. Since this is not my style, most of our leads come directly from buyers or sellers, relocation companies, lawyers, engineer bureaus and property management companies. Of course, if a home inspector makes a mistake and misses some defects, he should be responsible. Regardless, the problem with the soft inspections should be solved! What’s your opinion?
Click on the arrow in the upper right corner for full screen view
The two most common defects I discover at the majority of inspections are grading of the soil and vegetation too close to the house.
Proper grading helps to route the water away from the structure; level or negative grading leads to a wet a crawlspace or basement. Vegetation too close to structures creates all kinds of problems. Insects find the perfect environment to get into the structure and cause all kinds of damage. Larger trees and shrubs don’t just fill up the rain gutters, no – their roots are responsible for the most expensive damages. Yes, roots will crack concrete, lift houses or sidewalks and of course they kill your septic system. At our place, we had some really tall and mature trees, 75 ft plus, within a distance of 14 ft to the structure. Their roots already showed some rot, and we decided that they have to go. The close distance and huge diameter required professional help. We contacted Byrd Tree Service in Brownsville, because we knew that they do a good job. A few days later they stopped by with heavy equipment and a crew of experts. Within a few hours the problem was solved, excluding one piece. It was left in place because the wood peckers were nesting inside. Yes, this makes the difference between an expert and a fly-by company. Here’s my advice, take care of your grading, don’t plant trees and shrubs too close to the house. If you’re not sure about the right distance, ask an expert before you dig. If you have a tree problem, select a good company. Just act faster than the disaster! |
AuthorHi - this is Werner with Home Inspection Tennessee Archives
February 2021
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