Septic Inspections? Do you do them or waive ALL contingencies?

[Kiersten Vogt]

We're putting a cash offer in on a property. It's a property that needs some work and we'll be living in it and then doing a cash out refinance to purchase another investment property. It has a septic system and has been vacant. I know we'll be in competition with other investors so we are waiving all contingencies except we want to test the septic since it could be a huge expense. I'm wondering if other investors ever waive this inspection and take the risk?

[Matt Devincenzo]

Waiving the inspection contingency and not performing an inspection aren't mutually exclusive. You could choose to waive the contingency and still have it inspected during DD. If it 'fails' or would be excessively expensive to repair, you can just back out at that point and forfeit your EMD. You just have to decide if there is enough of a deal there to risk some money on the deal. You are always able to renegotiate or back out even without a contingency, you are just risking your EMD by doing it.