Real Estate Investing Property Inspection Tips: Maximize Profits and Minimize Risk

In the fast-paced world of real estate investing, inspections are often treated as optional items —especially by seasoned investors looking to close quickly or score off-market deals. But whether you’re buying or selling, thoughtful and strategic handling of property inspections can significantly impact your eventual profit. Let’s explore property inspection best practices from both sides of a real estate transaction: what to do (and avoid) when buying investment properties, and how to handle inspection-related repair requests when you are the seller.

When Buying: To Inspect or Not to Inspect?

It’s no secret that many real estate investors skip formal inspections altogether when purchasing a property. Why is that?

• Speed is key in the competitive markets for distressed investment properties! Waiting on a home inspector can delay a deal or cause a deal to be lost to another investor who waives the inspection.

• Experienced investors may feel confident evaluating the property themselves.  Particularly for new properties or properties with largely cosmetic issues.

• Buying “as-is” or off-market properties often do not allow for a traditional inspection contingency.

Having purchased dozens of distressed properties ourselves, we know this reality, and this is the environment many real estate investors expect.   That said, skipping inspections altogether always comes with some level of risk, especially for newer investors or when buying properties sight-unseen. Here are some best practices to protect yourself if you skip the inspection without slowing down the deal:

1. Do a Walkthrough with a Purpose

Even if you’re not ordering a formal inspection, conduct your own detailed walkthrough. Create a checklist that includes unpredictable and potentially expensive items:

Property Area	Look For:
Roof & Windows	Aged roof, water leaks, obsolete windows
Foundation	Leveling issues, cracks, moisture
Plumbing	Flush toilets, run faucets, check water pressure, old galvanized or concrete pipes, old water heaters
Electrical	Old electric panels and breakers, ungrounded outlets, old wiring, no GFCI in wet areas
HVAC	Old equipment, damaged ductwork
Water Damage, Mold, Asbestos	Water stains or damage, signs of mold or asbestos
Pests	Signs of termites, roaches, pets in the attic or walls
Trees and Drainage	Old/Dead Trees, Branches overhanging the roof, major drainage issues after a rain

Table 1

Bring a flashlight and go into the attic, crawlspace, and basement if accessible. These areas often reveal what staging and fresh paint is trying to hide.

Make a list of issues that you will need to address so that those items can be included in your budgeting and financial modeling work prior to making an offer.

2. Use Specialized Inspectors When Needed (and if you have the time)

For older buildings, or properties that look particularly rough, consider hiring specialists even if you skip a general home inspection. Examples:

• Structural engineer for foundation or major framing issues

• HVAC tech for older mechanicals

• Sewer scope or hydrostatic tests for homes with older plumbing

• Environmental specialist for mold or asbestos

  
  

Spending $300–$500 to identify $5,000 - $20,000 issues can help you decide whether to walk away from a deal or, if possible, lower your offer.

3. Document Everything

Take photos and notes. If you're planning to assign the contract or bring in partners or lenders, a well-documented walkthrough helps everyone understand the scope of repairs and potential risks.    You can also use this information to try to negotiate a lower offer if you think the seller will consider one.   If nothing else, this information may help you ultimately walk-away from a bad deal.

When Selling: Responding to Inspection Findings and Repair Requests

Once you’ve done your work—renovated, stabilized, or just cleaned up a property for resale—you’re back on the other side of the inspection process. Retail buyers almost always do a complete home inspection.  The buyer will inevitably come to you with a list of requested repairs after their inspection. How you respond can affect your net proceeds, timeline, and overall stress level!

1. Anticipate Common Issues

During your remodel/rehab phase, make sure you have addressed all major items (see table 1) prior to listing the property.    Those major items will all be red flags to a home inspector and a buyer, so it is in your best interest to address these items proactively.

Before listing, consider getting a pre-listing inspection, especially for older properties. This gives you a chance to fix even minor issues upfront or at least be prepared to negotiate.   Fixing the smaller items proactively can prevent disproportionate price reductions or cold feet from nervous buyers.

2. Review Requests Objectively

Some buyers will ask for everything. Others may only care about health, safety, or lender requirements (especially if FHA or VA financing is involved). You don’t have to say yes to every item, but you do need a strategy:

• Prioritize fixes that affect habitability, safety, or code.

• Offer repair credits, rather than doing work, whenever possible, especially if time is tight.

• Reject most cosmetic requests unless it’s a high-end sale where appearance matters.

3. Know When to Stand Firm

If you’ve priced the property aggressively or have multiple offers, you may choose to sell strictly “as-is.” That’s completely valid—but communicate it upfront in your listing and disclosures. If your buyer has an inspection contingency, they can walk—but many will stay if they understand the value they are getting.

Final Thoughts

For investors, inspections on the purchase are less about perfection and more about risk management. When buying, skipping formal inspections is a calculated risk—but you can at least make sure it’s an informed risk. When selling, inspections become a negotiation tool—your job is to minimize surprises and maintain control of the selling process.

The inspection process is not generally talked about in most real estate investing classes and books as it is not a high-profile part of the process.   However, if handled well, inspections can protect your profits and keep deals on track. Whether you’re flipping, renting, or wholesaling, treat inspections as a strategic part of your real estate investment process—not an afterthought.