I have been asked to perform a “simple Inspection” for an investor. Just requiring major defects of the Roof and roof covering condition, A/C and any other visual major defects like foundation settlement, root or similar defects, general appliances conditions etc… Do not required attic or crawlspace inspection.
Does anyone has had this request or similar before? How do you handle it? Any recommendations?
Make sure you add very specific language into your Agreement as to the requested SCOPE of the inspection, AND… what is to be EXCLUDED from the inspection!
Unless you have worked with this investor before, and have a good working relationship with them, you MUST CYA as an investor in general will look for any way possible to save and recoup every penny possible!!
Those areas are usually where most defects are found. I would definitely not exclude the attic and crawlspace.
I have one investor I inspect for that always just wants the crawlspace only. But these are always 1900 houses. The crawlspace is the most important.
When I was first starting out, I was a sucker to a couple of these requests.
Once you get there, you end up inspecting the items that they did not want looked at the time of pricing. “I know that we had not figured on you looking at the attic, but you’re here and it’s going to take you literally two minutes to look at it. We are going to waste more time arguing about extra pay than it is going to take you to look at it. So, you would actually be money ahead to inspect it. Plus, I plan on using you for a lot more work.”
Investors are typically the flippers that hide defects so they can have a better ROI. They don’t care about safety or quality. They don’t care if a repair or upgrade is going to last more than the time it takes to sell the house. You can almost guarantee that you will be thrown under the bus if the next inspector comes in and finds something that you missed because of a limited inspection.
If you are going to inspect the roof, the attic is part of the inspection. How else can you observe the roof deck. Inspection a couple of months ago had 6 inches of snow on the roof. Very visible wet and water stains around the chimney on the underside of the deck. Bad chimney flashing is a fairly serious roof defect. Didn’t (couldn’t) go any further.
Confirm with your insurance company that they will insure you for partial inspections.
“Ope… I’m sorry, but my Pre-Inspection Agreement, that you already signed, prevents me from inspecting those areas… BUT… I just happen to have with me a REVISED Agreement with a REVISED FEE for you to sign and we can proceed forward from there!!”
Don’t exclude stuff, you’ll forget.
Instead set a scope that is very limited A, B, C & D. Don’t deviate.
There are lender and investor groups looking just to hire people to go out and take pictures. They’re not local, but operating nationally, so they literally need boots (or maybe sneakers) on the ground everywhere so hit up Nachi members. They can tell enough from the photo set to lump the home into great, good, tragic, etc. That’s enough for them: details don’t matter.
Be sure to state that you will not enter these areas. Otherwise, you may be held responsible for not inspecting other systems in these spaces, such as air handlers or water heaters.
Florida has been a licensed state since 2006 and at one time investors made up about 30% of my business, also we are a four-point insurance state so for me the simplified inspection was an expanded four-point which included the structure.
The result is they had a four-point form they could actually use and an extra page for any structural issues noted. Worked well for years without any known problems coming back to haunt me.
I get these from time to time and I agree with some of the other replies… they always want more. Get it in writing exactly what they want inspected and what they DONT want and make sure they know the areas you are inspecting will be in accordance to the SOP’s. When it comes to pricing, they usually want some special deal or discounted rate. The problem with that is you still have to inspect those areas regardless if your only reporting majors and safeties. Also, I have found that “majors and safeties” can be quite ambiguous to a different client. If they say they’ll be bringing you more business you may consider telling them you can do “insert % here” on their second inspection and the ones that follow moving forward. Just my opinion 
How would you do the roof or foundation without doing attic or crawl? Its a full inspection in my book. In other words full price, if they are investers itd not a problem.
Hector,
I have been doing “Investor Inspection” for years. It helps pay the bills. We can usually complete the inspection in under an hour. The key is to have a signed agreement that spells out what is inspected. We do add the specific details on the report that this a limited inspection report (big and bold). No more, no less. We do provide all the inspection photos along with short report.
Keep the faith,
John
Indianapolis, IN
Ah yes, the good old, “I’m a big time investor and am only concerned with the big things.” That’s great until something THEY perceive as big isn’t what YOU thought was big. This is why we have things like SOPs and contracts. When asked, I tell people I “could” do limited inspections but it would take me more time to modify my contract and write a report disclaiming everything I’m not doing than to just do a normal inspection.
The real problem is with the systems… you’re not inspecting the attic or crawl but are inspecting the structure, electrical and plumbing. Hmmm, how does that work? Don’t you have to go into the attic and crawl to see the other things? I can see the wording of the negligence claim - The inspector entered the attic and made his way through the whole thing and made no mention of the rodent issue or mold conditions. No thanks… Run Forest, Run.
Sure, I can go to a house and get a good idea of things more quickly than I usually do but it’s really more about the communication of things and the contract. A home inspection really is what he’s asking for… A relatively quick look at a house that identifies the big problems.
I’ve been doing limited-to-only-major-components inspections for investors for years. A big mistake I made with one agent some years ago, was agreeing to do a limited inspection for a “regular” home buyer. Suddenly, all of her clients wanted the cheaper limited inspection. After a few of these, I ended that and we returned to full inspections for her clients. Investors and fixers are more likely to understand the limitations than folks buying their live-in home. So…what Jeffrey said…
As others have stated, you have to know your client.
I too offer this service for regular investors, it always goes as planned. They know what they’re looking for, and I give them what they bargained for.
I wouldn’t do them for a traditional buyer or some investor I haven’t yet worked with previously.
I appreciate the feedback from every one. Some of you mentioned exactly my concerns.
So this is what I did. My offer was:
He went to other inspector that apparently fulfilled his requirements
Thanks again…