Question about my accepted short sale offer...

[Derek Mizysak]

Long story short the seller accepted my offer and now the deal has to be approved my the bank. The house was sitting since June with no activity and they dropped it $20k and I offered $7,000 off he new price. My offer is subject to the inspection. My question is: my offer was subject to an inspection and the sellers agent suggested I do one ASAP but I don’t want to pay for an inspection of the bank hasn’t accepted my offer yet. Then if they decline it, I’d be out my inspection money. Can someone help me understand if I should be proceeding with the inspection before the bank accepts? Or is it ok to hold off until the bank accepts? I should also clarify that I am not working with an agent, just myself so kinda flying blind in some regards. Thanks, DM

[Minna Reid]

If your offer was executed by the seller, then yes you have a binding offer subject to lender approval or any other conditions stated in your offer. Technically that means the seller cannot enter into another contract unless your deal falls apart. 

With that said - don't count on every agent to play by those accurate rules. 

Regarding inspection - your contract should absolutely state a timeline for this. If it was my listing there would be a 100% chance that you have a short timeline from execution (not approval) to get these done.

Everyone should know the true condition of the property and negotiate it, or walk away - early on in the game before months are wasted by both parties waiting for approval.