Seller disclosure "no representation" and "no inspection"?!
Hi BP,
My REI partner and I are about to purchase our first two single-family homes. Our realtor got a deal on 9 homes with a wholesaler. We are buying each home for $148,000, with $500 in earnest money, and the Zillow value (which I realize isn't super accurate) is about $165,000. The out-of-state seller is making "no representation" on the disclosure statement, which, from what I understand, is not uncommon. However, the realtor is saying that we should be able to get an inspection but she cannot guarantee that we'll be able to (i.e. that it may be too hard for the property management to get the tenant to let us in in time for closing... that part of the reason that they are being sold at a discount is because there is some risk involved, etc.). The realtor walked through the properties and emailed us videos and a list of what she thought the necessary repairs and their costs will be on each property. She has a good reputation locally and on BP.
If the seller claims "no representation", and we can't walk through the property, and we can't be guaranteed to get an inspection, then should just walk away from this deal? Or should we sign the purchase agreements and simply back out if we can't get the inspection and just lose the $500?
Thanks for your thoughts,
Pete