Advice for Rookie RE: Seller waiving inspection

Advice for Rookie RE: Seller waiving inspection

Rental Property Investor · Danville, VA · Member since 2024 · 26 posts · 3 votes

Hi All and thanks in advance for any feedback / guidance, I am new to the US market and thought home inspections were common place when buying so any feedback is appreciated.  Please see  background on deal below, as this will be my firdt purchase. Apologies for how long it is 😂

Background - I have put a back up offer which looks like it will be accepted when the current buyer doesn’t meet the negotiated timeline  to close on a deal which was 2 small single family’s 2bd / 1bth recently fully renovated being sold together on a parcel. I was excited when i first saw the properties and have been waiting in the wings ever since hoping it wouldn’t go through as I can’t find anything else quite like it and the aim is I will be living in 1 and house hacking. Pretty much all major components were newly installed / fitted and done to a tasteful standard (new metal roof, plumbing, electrical, kitchen, flooring, bathroom, doors, new hvac, decks, vinyl siding etc) and I have visited and walked through 3 times and even been under crawl space to inspect a repair that was previously noted on an inspection to the foundation after termite treatment which looked to be a good job. My real estate agent, who has a long prior career history in construction, seems to be happy with both the properties and has inspected them in detail and also been under the crawl space noting new plumbing, electrical and foundation sister-in-law beams too.

As mentioned it is looking very likely the current buyer will not meet the closing deadline at which point I am next in line and have got price agreed with the back up after a few phone calls today. The only thing causing a little apprehension as it’s new to me (I am from UK so this is my first US purchase) is that the sellers, a local investor group, has said they don’t want me to do an inspection and have already got a pre inspection from a few months ago, and have rectified any work. As the property has been off market 3 months waiting for the current buyer to complete the sellers want to sell quickly and accept my offer and get it closed. 

I feel like i am happy at that price but am questioning am I being naive not to get an inspection? Especially as it’s my first purchase and I don’t want to make any school boy mistakes.

let me know if the above sounds common and reasonable 

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Dustin TuckerBusiness Member
Lender · Savoy, TX · Member since 2020 · 195 posts · 80 votes
2y

The best advice I ever received "Trust but Verify"

See this reply in the discussion

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  • Dustin TuckerBusiness Member
    Lender · Savoy, TX · Member since 2020 · 195 posts · 80 votes
    2y

    Hello Josh, You can do what you want, but you have an investor group selling you the property.  

    1. Why aren't they keeping it themselves?

    2. Have you taken the previous inspection report and verified all the items are completed per the inspection report.  I know that not everything an inspector points out, is in actual need of repair, but I haven't seen the report so I don't know.

    3. For the US markets a hope inspection report is pretty standard, from 2020-2022, some realtors encouraged their buyers to bypass the inspection period to have stronger offers.  I don't think that we are in a seller's market at the moment.

    If you don't feel sound in your gut, get an inspection, if you are ready to go, and have reviewed and verified the previous inspection report, you should be good to go.

  • Rental Property Investor · Danville, VA · Member since 2024 · 26 posts · 3 votes
    2y

    Thanks Dustin And thank you for your comments and insights here - I haven't seen the prior inspection report yet but I will need to see it to check it all off before I feel comfortable proceeding and closing. With everything pretty much being new I feel reasonably good and have somewhat of a "it's meant to be feeling" with the original buyer struggling to get the funding together to complete, allowing me the opp to finally secure. I still think the deal and numbers are good. Property is versatile posied pretty well for STR's and long term hold I feel given the location.

    The investor group seems to be streamlining into new construction and flipping / selling from what I gather (lots of properties on market now and new construction projects in development, I think the selling agent mentioned they had 400+ SFH in portfolio currently they are trying to sell off and transition more so into new construction and large scale apartment complexes) and have own separate businesses in the HVAC / Roofing / flooring world etc.

    I think my take away here is that I need to get my hands on the previous inspection to see what came up and check it off. My real estate agent is of the general thought wave that it would be difficult for anything to be fundamentally wrong given how it’s all been recently installed.

    I am just looking for that reassurance heading into my first US deal here 




  • Dustin TuckerBusiness Member
    Lender · Savoy, TX · Member since 2020 · 195 posts · 80 votes
    2y

    The best advice I ever received "Trust but Verify"

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    2y

    You should not skip the inspection. You can add language such as "Inspection for information purposes only" or similar to convey that you won't expect repairs or cash concessions from the seller, but you do not want to lose the ability to walk away if you find that the house is in shoddy condition and you should not trust an inspection report that is not from an independent source and provided to you outside of the seller. 

    Skyline Properties
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  • Rental Property Investor · Danville, VA · Member since 2024 · 26 posts · 3 votes
    2y

    Thanks JD - this would make me feel more comfortable too 

  • Rental Property Investor · Houston, TX · Member since 2019 · 141 posts · 48 votes
    2y

    @Josh Cocker

    If i were in your shoes, i would never skip the inspection. I would ask for a copy of the previous report ,go through it and order another inspection to make sure the issues has been rectified. As some one already said" Trust but verify". The has been a lot of cases where the rehab was done to make it look beautiful to the buyer but everything behind the walls or where eyes cannot reach is done incorrectly.Even big new home builders do this kind of shady business where it comes to a point it is necessary to order inspection for new home builds in US .

  • Rental Property Investor · Danville, VA · Member since 2024 · 26 posts · 3 votes
    2y

    Thanks Jeyo - sounds like I know what I need to do to feel comfortable proceeding 

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    With a background as a GC, Home Inspector and Investor, I would echo the above comments. ALWAYS get your own inspection!

    It does you no good to crawl under the house...are you a Foundation Contr? No. Don't even bother.

    Your Realtor used to be a Contractor? Ahahahaha....Ask to see his old license and research the Lic#. Look at pics of houses he built. If he was any good why is he now a Realtor? And of course he "seems to be happy with both properties"....Lol....you buy and he gets $money$. 

    Don't be so naive. 1) There is a reason that the sellers don't want you to get an inspection - THERE ALWAYS IS. 2) Your Realtor's opinion is less than worthless, I would be very suspicious of him. 3) Get an inspection.. Word it however you want, but do it. IF they make it a deal-breaker, fine, just walk.

    This frankly stinks to high heaven, I'd be running right now.....

  • Rental Property Investor · Danville, VA · Member since 2024 · 26 posts · 3 votes
    2y

    That was A LOT of passion there Bruce .. I felt it  đŸ˜‚ Naive?! It’s my first US purchase - you expect me to be seasoned pro? That’s why I am writing this post in the first place 😂 

    Noted on your points. I’ll be getting / stipulating the inspection 👍My Realtor isn’t a contractor, he worked in construction for many many years and has a decent size portfolio of rentals and owns the brokerage too, and has told me to walk away and instantly dismissed 10+ other properties we walked and toured. He is a family friend and we have even looked at some off market for sale by seller too that I identified stuff where he wouldn’t even earn a commission and he was happy to investigate for me - more of a looking out for me / family than counting a check (I am not looking for expensive real estate and he has owns the brokerage of 20+ agents, unfortunately my purchase isn’t much of a profit opportunity for the office but would probably be more embarrassing on him if we get something wrong  😂) 

    Noted on the inspection though and I will stipulate it is a deal breaker on my side.


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