How do I sneak inspections and appraisals into a contract?

Question

How do I sneak inspections and appraisals into a contract as a cash offer?

Where can I find full unredacted text of a contract with a buyer that does this? Would a standard contract allow the buyer to perform various inspections, within reason, even if there are no contingencies?

Of course, I would not tell the buyer I’m doing an appraisal and inspection. I’d just say it was an inspection so I can plan for what upgrades/fixes I need to do on the house after closing. Is this a true enough statement? I’d call it an appraisal “inspection” when the appraiser visits the property.

Dustin Allen · Answer

@Mike Schorah

Trying to “sneak” anything into a contract is a recipe for disaster. Get an inspection period written into the contract and do whatever investigations that you want to in that timeframe. Be upfront about your offer.

Appraisals are an opinion of value at a moment in time. If it’s not being done for a lender than you are just paying for someone’s price opinion at that moment. You could do this during inspections but I would be more concerned with property inspections and your original underwriting of the property’s value based on your planned use.

Will Gaston · Answer

Figure out another way. Your reputation is more important.

Corby Goade · Answer

You've already got your answer, but just to clarify- every market has a VERY small investor community and they're tight. They share deals, resources, etc. If you get a repulation for dishonest dealings, you won't be let in to the group. You can do well and be honest and upfront in your dealings.

Account Closed · Answer

That is a lot of wasted time and resources. Don't build your business on "sand". Build it on a solid rock of truth. Omissions can be construed as deception. Don't go there. ;-)

Peter Mckernan · Answer

@Mike Schorah there is no sneaking anything into the contract, it'll have to be renegotiated or at least signed off by both parties. After the contract is signed with or without contingencies you are in that contract.

The best thing to do if you are actually in this situation is to call the agent/buyer/seller whoever is on the other side say, hey I messed up and I (or my client) needs to do some due diligence on our end to facilitate the close. You'll need to be as transparent as possible, if not then you are going to get a bad reputation in the long run, in the short run you could lose the deal and the EMD if things go south.

If these are things that you just want to know prior to closing so you can be prepared for the work after closing just say hey, this is a quick inspection to know what we are getting into once we close (I.e. contractor estimates etc.).

We just closed on a flip, only contingencies were title and disclosures; all other contingencies were left out since I saw it in person. We got into the house one last time before we closed to get an estimate from our contractor which the seller/agent knew about and that was it. We never went back and changed the contract or asked for anything, it was just a quick walkthrough before we closed to get started on rehab day one of COE.

Luke G. · Answer

This is a really bad idea. You may figure out a way to do it once, but if you go back on your word and it blows up in your face your name will be essentially poison in most REI circles.

Anthony King · Answer

@Mike Schorah You should probably print out this question and then attach it directly to the contract so they know exactly what you're trying to accomplish. If you don't think that's a good idea, then you need to rethink your plan. Don't be shady.

Theresa Harris · Answer

What is the point? Work with a realtor who will have a standard contract and simply add in the inspection and financing conditions that are pretty standard.

Look at a property, then do a second look taking a contractor with you. You should pay for this as the contractor is spending their time going through it with a high risk that you won't even buy it.

Michael Blum · Answer

@Mike Schorah

Definitely echoing what is being said here. “Sneaking” is going to ruin your reputation and integrity. Once lost, you are not getting that back. If you are getting the deal at the numbers that makes sense to you, take that as a win and keep it up.

Dwayne Poster · Answer

I agree. The strength of your business is largely dependent on your ability to contract. Attracting litigation is going to have people running from you.

How do I sneak inspections and appraisals into a contract?

How do I sneak inspections and appraisals into a contract?

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