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 ***!

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.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here