Getting earnest money back after inspection

4 Replies

Hello everyone,

I am making some offers on properties sight unseen on MLS (retail and REOs) and something came on may mind. Let's say: the seller accepts my offer and I do inspection on my own without an official inspector. How can, if I find some big issues, validate my response to the seller and get the earnest money back? Is a licensed inspector's report needed? I understand some REOs and HUD do not care about your inspection reply.

My concern is that I don't think it's economical to have all properties that accepted offers inspected by paying inspectors $400 each. Is there a way that can be done to save money?

 Thank you all in advance.

Yes, get some good contractors you know to do a preliminary (not full) inspection to identify the risk associated with each deal.  Then, if you're confident that you want the property, pay the $400 for the full inspection to protect your ***!

thanks @Account Closed  . If i do not want the property after GC pre inspection, do I need to get like a short report from that GC to terminate the contract?

nope. Just send them a termination prior to end of inspection period.

Be aware: some deals, like HUDs, do not allow investors an inspection period.  It's best to consult your agent to ensure you build multiple ways of getting out of the transaction if you need to.

no inspections = bad idea

just my opinion

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