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Real Estate Fight Club

Nov 2022

Should Your Clients Get A New Construction Inspection?- EP 163

November 7, 2022

Should you encourage your buyers to get an inspection on new construction? It is a loaded question. On today’s episode of the Real Estate Fight Club Podcast, Jenn and Monica sort it all out on what is important and why, don’t miss it!

Episode Highlights:

  • Do you really need to get an inspection of new construction? Monica used to work for a builder and she weighs in with her opinion.
  • Jenn brings up how the builders are pulling permits on things, where does that come into play in whether or not to have an inspection?
  • Are house inspectors trained and licensed?
  • Jenn mentions how buyers should not solely rely on the inspector if they decide to get one, or solely rely on the builder, but rather they need to be there regularly and understand what is going on.
  • Monica always recommends a pre-drywall inspection and explains why. She brings up other big things you may want to check on.
  • A good inspector represents the buyer and protects their investment.
  • Jenn and Monica talk through scenarios they have experienced with new construction.
  • Does it depend on who your buyer is and what their comfort level is? What if they were previously a builder?
  • As a real estate agent, you do share a responsibility through the process to make sure they are getting what they pay for.
  • Monica shares a story where water was pulled by a back door concrete pad and leaking through into the basement.
  • If you have stories about the importance of inspections, let us know, share them!
  • Tiebreaker today, Brandon Thomspon, is a broker owner of STR Wealth Brokers out of North Georgia/metro Atlanta.
  • Brandon Thompson has been around all aspects of real estate for a very long time. He has a lot of experience and advice to share. 
  • Brandon was a part of an experience where a buyer bought and didn’t get an inspection. The seller was hiding things on purpose. BRandon advises that just because you pass permits doesn’t dismiss the need for inspection and explains why. In this particular story, the house flooded and things were shifting in the house.
  • Jenn asks Brandon what he thinks would be going through a buyer’s head when they think they may not get an inspection for a new home?
  • $600 give or take is worth having eyes look at what you're buying rather than spending the hundred of thousands of dollars to then have your house sinking.
  • Jenn says that an inspection on a new property can come back with two pages of issues not necessarily because the builder is bad but because there are a lot of things that go into constructing a home.
  • Brandon Thompson shares his experience with brokerages, flips, long-term rentals, etc.

3 Key Points:

  1. An inspection on new construction is a good investment just as it is on a pre-existing home. Jenn and Monica talk through scenarios of why.
  2. Getting people to come back out after the fact to fix things is much more difficult than doing so up front. 
  3. You should be recommending your clients to get an inspection because you do share a responsibility through the process to make sure they are getting what they pay for.


Resources Mentioned:

Brandon Thompson:

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