I have an inspection clause and a 7 day walk through rescission in my contract to give myself the ability to put offers in on properties unseen and to provide me a way out of the contract if my contactor doesn’t sign off. Approaching it like this, I figure there will be plenty of properties that i come across that won’t pass the smell test when i do the walkthrough with my contractor and inspector costing me a lot of money on the inspection itself.
Do you guys think the inspection clause is necessary seeing that i want to buy the property as is? The inspection is soley for my own knowledge. Also do you guys inspect your property before purchasing them? If not when you do get the inspection done? I'm trying to BRRRR them.
It depends on the deal -
- In multiple offer situations where you have to beat other offers the 7 day can be a huge negotiating point.
- No matter what I do with the property I get it inspected. It gives me a more firm answer or re-verification on the rehab costs. There can be hidden issues such as mold etc. Unless you will be doing a complete tear down.
- The inspection clause or 7 day option period can be used for multiple reasons and not just only for inspections. I always like having an option out if able.
@James Bigley do you get your inspections done before closing on the deals?
Yes, always before the option back out period ends. I will shop my inspectors in addition. Look for good reviews and negotiate the price down since you will be doing multiple properties.