Inspections after placing a bid to buy.

[Dandy Reiner]

I'm a total newbie. I've never purchased any real estate before.  I want to make a bid on a 6 plex.  My question is concerning the inspection.  I understand it is expensive to have it inspected.  What happens if it does not pass inspection?  One of the apartments doesn't have a heat source.  They take in residual heat from the apartment downstairs and they use a space heater.  If is should not pass inspection, what happens after that?

[Austin Parker]

Dandy,

Typically when a buyer performs an inspection, there's not necessarily a "pass/fail", as this is subjective to the buyers. The purpose of these is more-so to assess what sort of liability you will be acquiring in your new asset. If the scope of repairs seems to high, you have the option to walk. If it is deemed doable, you can either request the repair work be done, or quantify a credit amount to be applied to closing.