What's the risk buying a house without inspection?

Question

I put in a offer on a 4 unit, 6000 square feet apartment, plenty of potential, but to get into this gigantic house without seller hesitation to accept our offer, our agent put in no inspection clause. First I was to excited for the acceptance from them but now I'm either over thinking or paranoid that there might be something wrong with it. On naked eye it looks great. But its 1900 house. Possible lead, possible foundation problems, possible termite, possible roof issue, possible flood zone, possible illegal permits or even electrical/plumbing. Did I make a mistake or should I back off. Any possible to get a inspector there before sending my down payment , thank you.

Russell Brazil · Answer

The reality is, if you are in a hot high demand market, you have to go no inspection to get the property. The house is going to have a bunch of problems, as they all do....and thats just part of owning real estate. 70% of buyers experience a major repair cost in the first year of ownership so make sure you plan on that.

Heath Donnald · Answer

If you know enough to know what to look for and have accounted for what you may find in a 1900 built house (knob and tube, old style NM illegally tied into that knob and tube), possible asbestos in flooring or HVAC, most likely lead paint, etc then you may be okay. It's the mention of "possible flood zone" that indicates to me that you may be surprised by something since flood zones are easy to know before an offer is made. I bought a 1921 bungalow with only a foundation inspection, but I knew I was gutting the place anyway and any areas I wasn't touching I knew enough to be comfortable without an inspection contingency on those.

If you can get an inspector in there, it may be helpful in this case if you are having any second thoughts.

Seth Williams · Answer

@Klaycon Santos - Im a MA guy, we do it in this competitive market all the time. Shoot me an email if you need some help brother. Every house out here has a ton of old house problems, its just the way it is. It doesnt mean you should waive inspection, or it doesnt mean you should get cold feet. if the house makes money, it makes money. DM me, love to help you get started. Also, you can still do an inspection, just your offer isn't contingent on inspection. Worst case, lose your deposit ( prob 1k ) in mass, but, learn a ton.

Tj Hines · Answer

@Klaycon Santos, if you're having second thoughts I would back away from the deal before sending in your down payment. A 1900 yr old built home can bring many problems down the line, if they haven't been detected before hand. Coming from years of experience of fixing and flipping properties before transitioning to commercial multifamily full time, I would say you need to make sure you have all of your T's and I's dotted, if not then your risk increases quite a bit

Bjorn Ahlblad · Answer

The risk could be anything........trashed units, foundation, plumbing, electrical, on and on. Or nothing and that would be unusual. What about the leases and rent roll and financials-you not going to look at them either? If it were me I'd fire the agent too. And then I'd go stand in front of a mirror and give myself a proper scolding!

Allan Smith · Answer

Don't close on any building ever without a qualified person walking thru to inspect first.

up to you if you skip having an inspection contingency, but somebody has to inspect it regardless before closing.

What's the risk buying a house without inspection?

What's the risk buying a house without inspection?

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