A building inspection can make or break a deal and for good reason.
When you purchase multifamily property, it's important to write an inspection contingency into the contract even if you intend to rehab the property.
Taking the time to get the property properly inspected can save you from overpaying or making a bad buy.
Choosing the best inspector for your situation is not always easy, especially if you haven't purchased multifamily property before.
Generally, you are hiring an inspector because you want peace of mind.
Not everything can be determined from a general inspection, but ideally you will learn enough about the property to make an informed go or no-go decision.
When hiring an inspector I want to know their background and experience with building construction, how long they have been in the business, how thorough I can expect them to be, how long they need to complete the job and how detailed a report they will provide following the inspection.
As a buyer, after you have qualified the inspector, the first thing to consider is how thorough an inspection you need.
From time to time I will work with a client who simply wants someone with a trained eye to asses the general condition of major elements that could be costly to repair or replace.
This is perfectly acceptable and also the least expensive option outside of inspecting the property on your own.
If you are purchasing a building that you intend to rehab, you may only need someone to check out major items like the foundation, structure, and roof.
How thorough you need an inspector to be in this case depends on the scope of the work you are planning.
Sometimes, you may be OK just walking your contractor through the property if you feel they are qualified to give a proper assessment.
More often then not, buyers will opt for a full inspection, going through every unit and over all the major structural and mechanical elements of the building.
Since multifamily is generally used for apartment rental income, inspectors are going to focus on bigger ticket items.
Squeaky floors, scratches, dents and other small maintenance issues probably won't be addressed.
Depending on the size of the building, you may want to hire a service willing to send out at least two people to conduct the inspection.
One inspector can then go over items related to the structure, foundation, windows, roof, mechanicals, etc.
While that is going on, the other inspector is free to go through the units, checking the functionality of the appliances, electrical outlets, plumbing fixtures, and so on.
Having two inspectors will add some cost but the time saved and thoroughness of the job will be worth it for some.
For me, reporting is a key consideration.
I want to know how thorough the report will be, what details will be documented and how the information will be presented.
I think I've seen almost every technique there is, from the guy who writes the entire report on a legal notebook from memory following the inspection to a very professional team that provides a web link to the final report that includes video and digital photos of all items covered.
You will get what you pay for.
There are definitely some advantages to hiring an inspection service that provides detailed reporting.
For starters, often times the seller does not know the true condition of the mechanicals, roof, windows, appliances, structure, sewer and so on.
Having a detailed report provides ammo to renegotiate with the seller if you feel you may be over paying for the property.
Maybe the best and often overlooked reason to pay for a thorough inspection service that provides a detailed report is after you close on the property, the report can serve as a reference guide that you wouldn't otherwise have.
That alone can be worth the cost incurred to ensure you are buying right.