Can I do Inspections when Buying a Connecticut Short Sale Home?

Ed, great post. This is something that is hard to grasp for many people, including some buyer agents and buyer attorneys. They feel spending the money up front for a home inspection on a home they may not purchase is risky.

I agree with you for all the reasons above. Waiting until the approval can cause the deal to either have to start all over again, or tank the deal entirely.

Home inspections, on any home, are a must and are never a guarantee of purchase. So what is the problem? They can save a buyer so much headache and heartache, especially for a short sale. 

The cost of a home inspection is small compared to the problems that may be encountered after it's too late to terminate the purchase.

It ends up costing money to inspect without knowing that you'll even get the short sale approved, but I guess that's the price you pay with short sales.  Hopefully you get a good deal in the end.

Ed another reason for having as much as possible completed prior to Short Sale approval is that once the Sellers Bank approves the Short Sale they generally only give 30 days from approval to Closing, and that is not much time if nothing is done before then.

I have to advise my clients about this all the time.  Just because its a short sale does not mean it is a 2 year process.  And more importantly it does not mean that you are buying the home for a steal.  Good post.  Extremely relevant.

Great advice Ed! Though some will opt out on a professional inspection, it is ALWAYS best to hire a licensed inspector to do the job. And if they opt out, get them to sign an Inspection Waiver. Congrats on the feature!

Hi Ed: Listing agents should encourage the buyer's agent to conduct the home inspection within 10 to 14 days from the date the contract is accepted and not 10 to 14 days from the receipt of bank approval. This will eliminate potentail huge obstacle and heartbreak for all the parties involved in the process.

Actually, not only encourage but put it in writing. :)

Congratulations on the featured post. I hope buyers will read this post.

Hey Ed! Nice to see another featured post from you. And an excellent one at that! Bottom line- do not buy a house without an inspection. Nuff said.... Hi from NJ...

One thing for sure, if anyone is looking to purchase a short same, they should make sure to be working with someone that understands the process, just like you.

Ed, I agree getting the home inspection and any other inspections the buyer wants early is the way to go.  And most importantly as Joe #11 says the buyer needs to work with an agent who understands short sales....there's this guy up in Waterbury CT who knows the ins and outs of short sales his name would be Ed Silva with RE/Max Professionals.

Many buyers have not wanted to spend money on inspections before they know a short sale has been approved.  You have articulated some good reasons why a buyer may want to proceed with the inspections.

I personally don't do short-sales.  However, I do know one agent, who had a client that had their home inspections performed fairly early on 3 separate short-sale homes they tried to buy.  And on each and every one of those "contracts" the bank jerked everyone around, so the sales didn't go through.  That's a lot of inspection money down the drain.  I've wondered about how to perfectly handle the inspection issue in a short-sale environment.  I haven't come up with a good answer, and it's just another reason I won't touch short-sales.  You make excellent points however about why a buyer might want to have those inspections early. . .If only we were dwelling in a more perfect world!

Ed, I've noticed that the banks I've done short sales with will do anything related to health and safety, but beyond that, they are not interested.  A short sale is great if you have time to wait, and if you can do your own homeowner repairs.  I do encourage my client to pursue them if they qualify. 

Ed, I inform my short sale buyers that this inspection will be for information purpose only. Well, sometimes bank may take care of some of the items in the punch-list.

Though now-a-days, I do not see short sales in our area...

If it's my listing I say "inspect all you like but it is purely for your informational purposes".

Ed as a purchaser of a short sale or any home best to do your due diligence. Great post  thanks.