What does a 203k consultant do for their fee?

A consultant is required to inspect the subject property and create a “203k compliance inspection report” commonly referred to as a “home inspection”. In reality it isn’t a home inspection as a home inspection is inadequate for our purposes

A home inspection will typically “recommend” a licensed roofer provide a roof report…while a consultant would actually make that determination to repair or replace it and write the specification accordingly.

The consultant uses that inspection to create a “scope of work” or list of repair items from the inspection and add the wish list items the borrower wants to add to the scope of work. Then the consultant provides his/her bid on that project   BEFORE it is sent out to bid to contractors. It is this service that “empowers” the borrower by letting them know what this project construction cost will be.

Once this is done then and only then does this go out to bid to contractors. The borrower gets the bid back from a contractor within a reasonable % difference from the consultants bid and they can make a decision to choose the appropriate contractor.

There are a large number of consultants who will bring a contractor in up front and let the contractor bid the job then the consultant writes their report from that bid… this IS NOT an acceptable method of consulting.

The compliance inspection aka home inspection for the 203k is the basis for all else. If it doesn’t catch the items that require repair then the project might be in jeopardy. 

If you don't have a lender your consultant can suggest one for you, if you need assistance finding a contractor, they can recommend contractors as well. In general a consultant can do anything you find distasteful or just don't' want to do as a buyer.  If you want more information we are going to be in San Gabriel in early May at the San Gabriel Association of Realtors.