Real Estate Agent · Ocean View, NJ · Member since 2015 · 76 posts · 25 votes
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?
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.
@Kiersten Vogt keep in mind too that if something, septic or otherwise, comes back in an inspection, remind the seller that he then has a responsibility to disclose the defect to any future buyer. Most of the time they would just rather work it out with the deal in hand and get it closed!
@Kiersten Vogt not enough info for answer. If it were in CA, I'd NEVER consider it. Depends on what your area is like as far as replacing, costs, time, etc
Stumbled upon this old post. Given most towns don't have a lot of septic companies, I would call around to ask if they had serviced that address and if so when.