Rental Property Investor · Brattleboro, VT · Member since 2015 · 204 posts · 174 votes
I just got a property under contract, it is my first deal. It's a short sale. The offer still has to be approved by the sellers bank. My agent has told me that I should get an inspection done right away, but it makes more since to me to wait until I here back from the sellers bank before I put any money into the deal incase they come back with a counteroffer that doesn't fit my numbers. I'm confused as to why my agent is asking that I get the inspection done now instead of waiting for the bank. When I asked him about this he simply responded that I should get the inspection done right away. My only thought is that he is getting pressure from the selling agent to get the inspection done now so that if I wanted to get out of the deal they have time to find another offer before the bank decides to foreclosure. but that's not my problem so it shouldn't be my agents problem either, right?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
What does your contract say? Buyers always want to wait to do inspections until after bank approval. As a Seller's agent, we will Not sign a contract without decent EM up front, and the inspection upfront. I understand you don't want to spend a few hundred bucks for an inspection when you don't know what price will be accepted yet. But, do you really think I'm going to take the property off the market for 60-90 days, get it approved, and then you simply walk without penalty because you change your mind, or found something better, and now my seller is 90 days closers to an auction, and doesn't have time to go through the process again? This is why I try to find an owner occupant buyer, someone who really wants the house, as opposed to an investor, when possible.
Rental Property Investor · Brattleboro, VT · Member since 2015 · 204 posts · 174 votes
10y
This would be an owner occupied tri-plex. I understand your point of view. As the sellers agent it is your responsibility to work for the seller, but there isn't anything in the contract that states I need to get an inspection right away, and the contract has already been signed, and treating this transition like a business deal, I am obviously trying to protect my best interest. I guess I'm just worried that my agent is putting the sellers interest in front of my own, but I am a new investor so maybe I am off base here.
Investor · Boise, ID · Member since 2011 · 1k+ posts · 736 votes
10y
Sometimes this is a requirement by the listing agent, but if they are not making you, I would definitely wait to see if the bank responds. When purchasing, I have done it both ways. Here is what happened to us on one home: We did an offer and inspection in March, then finally closed in October. What we didn't know when we closed on it was that there a hail storm that damaged the roof that Summer while waiting for the bank. If we would have known, we would have negotiated further. We should have gotten someone else on the roof for another inspection before we accepted the banks offer. Hopefully someone can learn from our mistake!