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Investor Insights Blog|7 Home Inspection Myths It’s Time to Stop Believing

Real Estate

7 Home Inspection Myths It’s Time to Stop Believing

home inspector

By Guest Blogger John McCreath, Inspector Training Coordinator at National Property Inspections

If you’re buying an investment property for the first time, the transaction process can be overwhelming, to say the least. While we can’t promise it’ll be a stress-free experience in the end, we can take the guesswork out of the whole inspection thing. We at NPI are here to bust some of the myths and misconceptions that are still out there about home inspection.

Myth 1: It’s fine to skip a home inspection in order to put in a more competitive offer.

Truth: Skipping an inspection is never a viable option when it comes to investing in property. Your inspector has the expertise to assess thousands of components and identify issues ranging from small to serious. That means they’ll be able to point out simple fixes like loose doorknobs, but also hazardous or fatal conditions, like carbon monoxide leaks. Even if no major issues are found in a home, your inspector still plays a vital role. They’ll point out maintenance issues and estimate appliance lifespans so you can plan for successful property ownership.

The good news is that NPI inspectors are ready to perform your inspection during any phase of the buying process, whether that be before you make the offer or after you’ve already closed. You can still get the information you need for financial planning, and most importantly, you can make sure the home is safe for tenants.

Myth 2: A home inspection is the same as an appraisal.

Truth: A home inspector identifies safety issues and maintenance tasks while an appraiser determines the actual market value of the home. While both technically inspect the home, your home inspector is checking major systems for possible repairs, and your appraiser is documenting amenities, floorplans, and market trends. Your home inspector will never assign a monetary value, but your appraiser’s end goal is to assign a reasonably accurate monetary value.

Myth 3: Your inspector can advise you on whether or not to buy the house.

Truth: Your inspector is an unbiased third party who is there to report on the condition of the home and to educate you on any potential issues. Your inspector will never tell you whether or not to purchase a home. This is actually ideal! You want an individual on site to provide just the facts so that you can weigh your options and invest wisely.

Your inspector will never tell you whether or not to purchase a home. This is actually ideal! You want an individual on site to provide just the facts so that you can weigh your options and invest wisely.

John McCreath, National Property Inspectors

Myth 4: Your inspector will tear into walls in order to find problems.

Truth: Home inspectors perform visual, non-invasive inspections. They’ll never alter or damage the property, nor move any furniture or personal items during the inspection process.

However, that doesn’t mean they can’t provide answers. With advanced tools like sewer scopes, moisture meters, and thermal cameras, inspectors can see beyond walls to provide important insight into a home’s condition—without picking up a sledgehammer.

Myth 5: You have to use the inspector that your real estate agent recommends.

Truth: Your real estate agent will probably have a list of inspectors they can vouch for, but that doesn’t mean you have to choose one of them. You’re well within your rights to do your own research and choose your own inspector if you wish.

Myth 6: Inspectors grade homes on a “pass/fail” basis.

Truth: A home will never “pass” or “fail” an inspection based on an inspector’s findings. Your inspector is there to give you an objective overview of a home, not to make judgments about its overall worth. Each system or component is evaluated, then, in your inspection report, they’ll note whether the item is in acceptable condition or needs evaluated by a professional for repair.

Myth 7: Inspections aren’t required for new construction.

Truth: Every home, whether it’s 1 or 100 years old, should be inspected by a qualified professional. That’s because any home can have defects. Certainly, age-related defects make up a large percentage of issues inspectors spot, but building mistakes happen. Even if you’re the home’s first buyer, you’ll want to make sure that all components are in place and installed correctly for safety reasons.

 

 

About National Property Inspections

Since 1987, National Property Inspections has been the premier provider of home inspections and commercial property inspections throughout North America. NPI inspectors evaluate thousands of homes and commercial properties each year, utilizing industry-leading training and technology to give you an unbiased look at the condition of any home or commercial building. Our ever-growing list of satisfied clients includes homebuyers and sellers, commercial property investors, employee relocation companies and more. Schedule your inspection today and discover why NPI is the first name in home inspection.

About Jon McCreath

A former NPI franchise owner and real estate agent, Jon joined the NPI corporate team in 2019. Before coming to the real estate industry, Jon served as President of Vale Training Solutions, a company that provides on-site and online training courses for claims specialists. With his inspection expertise and foundation in classroom instruction, Jon teaches and mentors new franchisees during their two-week training course in Omaha. He also handles technical support calls during and after office hours and guides franchisees through the state licensing process.

1

Can my IRA purchase real estate that I currently own?

No. This is considered a prohibited transaction (see IRC 4975). You may not purchase a property, or interest in a property, that’s currently owned by a disqualified person, which includes yourself.

2

Am I restricted to only purchasing residential property with my IRA?

You are not limited to residential real estate. Your IRA can hold various investment properties such as commercial buildings, vacant land, condominiums, mobile homes and apartment buildings, in addition to residential property.

 

As Equity Trust Company (“Equity Trust”) is a directed custodian, like any investment, it is your responsibility to conduct your own due diligence before investing and before choosing a provider that is right for you. Equity Trust may, from time to time, establish independent contractor relationships with third-party providers, as provided above, whereby you, as the IRA owner, can have access to third-party providers for services that may be beneficial to you. Equity Trust is not an affiliate of any such provider. Equity Trust makes no recommendation or representations as to any provider and service or the needs generally of any IRA owner or any IRA. Any service available from any provider that offers investment education or advice solely reflects the views of such provider and in no way represents any recommendation or advice from Equity Trust. Opinions or ideas expressed by third parties, their affiliates, and employees are not necessarily those of Equity Trust nor do they reflect their views or endorsement. IRA owners are in no way obligated to purchase services and IRA owners are free to choose a provider with services as they deem appropriate. IRA owners should consult with their financial and legal advisors before choosing to work with any provider.


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