FAQ: Property Inspections for Boston Multifamily Investment Properties
A property inspection is one of the most critical steps when buying or selling Boston multifamily investment properties. This article will cover everything you need to know about property inspections before buying or selling Boston investment real estate. Considering that the Greater Boston Area has numerous two and three-family properties that are often over 100 years old, it is a great idea to give your inspection process the due diligence it deserves.
What is a property inspection?
The goal of the inspection is to find any problems or possible problems with the property that may need to be fixed before its sale. A professional, licensed inspector thoroughly checks a building during a property inspection. Most of the time, the inspector will look at the building’s structure, its mechanical and electrical components, and any noticeable flaws or risks. Property inspections are frequently performed as part of the due diligence process.
When you have a multifamily investment property in Boston, you are most likely going to have nearly all of the units occupied, so be prepared for some delays and surprises in the inspection process. Often times tenants are not ready for the inspection, even though they have been notified, so it is not uncommon to lose ten to twenty minutes of your time just waiting for them to let you in and make it possible to walk through.
Why are property inspections so important for Boston multifamily investment properties?
A home inspection can give buyers peace of mind that the property is in good shape and has problems that will require expensive fixes. It can also help find any potential dangers or safety issues that must be fixed before the building can be utilized to its highest potential. This gives potential buyers a clear picture of the property’s condition and prevents surprises from disrupting the sale when the time comes.
What Should You Anticipate During an Inspection?
During a property inspection, the inspector will typically spend several hours examining the property and taking notes on any issues or potential problems. They may also take photographs or measurements to document their findings. The inspector will then give a written report of what they found, including any significant problems or safety risks, suggestions for repairs or more research, and a rough estimate of how much the repairs could cost. There is often a lot of information to digest and unpack in these reports and many first- time Boston multifamily buyers can become quite nervous about their potential investment.
The inspection report can help you determine if there are any significant issues with the property that must be addressed before closing. It is crucial to thoroughly review the information and ask any questions you may have before moving forward with the sale.
What Do Home Inspections Encompass?
The inspector will usually look at the inside and outside of the property to see if there are any apparent problems or possible dangers. A home inspection looks at the structure, foundation, roof, heating, ventilation, air conditioning system, plumbing, electrical systems, and appliances, among other things.
During an inspection for a Boston multifamily investment property, the following common issues may be discovered:
- Structural problems, such as foundational or framing issues.
- Roof damage or Leaks.
- Plumbing issues, including leaks and drainage issues.
- Electrical problems, including outdated wiring and defective fixtures.
- HVAC problems, such as malfunctioning heating or cooling systems.
- Dangerous substances, such as mold and asbestos.
As a buyer, or seller, of investment real estate, it is crucial to know how vital property inspections are and to take them seriously.
How Should You Select a Home Inspector?
Here are some tips for selecting a qualified professional inspector with a good reputation:
- Look for a licensed inspector with a good reputation in your area.
- Before making a choice, checking references and online ratings is prudent.
- Ensure the inspector has experience with the type of property you buy or sell.
- Confirm that the inspector is insured and bonded.
- Inquire about the inspector’s inspection procedure and what they seek.
You can do more than hire a qualified inspector to prepare for a property inspection. As a seller, you can ensure that the house is clean and clutter-free and that all the systems and appliances work well. As a buyer, you can accompany the inspector during the inspection to ask questions and learn more about the property.
In the end, a property inspection aims to give a complete picture of the property’s condition and point out any problems that may need to be fixed. A thorough inspection ensures that your real estate investment is safe and gives you the information you need to decide when you buy or sell property.
Boston Pads is here for all of your buying and selling needs. We can put you in contact with licensed agents that specialize in multifamily investment property sales, and will help guide you throughout the entire process. We look forward to working with you.