Inspection and Appraisal BEFORE I make an offer??

Question

Joe Villeneuve · Answer

Offer first. Inspect based on accepted offer.  You shoud be able to know what the property is worth before you make the offer (ARV). You should also have an understanding of what rehab you are willing to do. Base your offer on that.  If your offer isn't accepted,then you won't be wasting time inspecting, and money with an appraisal. If the offer is accepted, then you inseptc the property.  When you inspect, if you fingout the rehab isn't what you expected, withdraw the offer.

Jeff B. · Answer

As a seller, and to protect my tenants from lookie-loos, I would never allow a casual inspection and an appraisal would need access to the interior, so without a serious offer and earnest money deposit I would not grant access to the unit.  A serious, accepted offer gets an invitation to the dance :)

Wayne Brooks · Answer

You should be able to readily identify things that are apparent, and need to be fixed, with your own viewing.  Inspections are for the things that are not obvious.  Make your offer based on your own inspection, retaining an inspection period of course.  You, or your agent, should be able to determine a fair price prior to an offer.  If you're financing, the appraisal will be required anyway and would be your out if you offered too high.  If paying cash, you can make the offer contingent on the appraisal.

Heath Thomas Jr · Answer

Personally, I would make the offer first, estimating for some potential repairs. If the seller accepts, then you can pay for the inspection and appraisal. Otherwise, you pay for both (Could be close to $500 for each of them) and you may not even get your offer accepted!

Side note: You could save money on an appraisal by speaking with a knowledgable Real Estate agent/friend, with access to the MLS. If you suspect you're going to need some rehab, bring a contractor to bid on the work. Both of these things are free!

Inspection and Appraisal BEFORE I make an offer??

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