Everything started out as usual.
Client called asking about my inspection choices, prices and qualifications. Set the inspection for a couple days later at 5:30PM per the client's request (he didn't want to take a day off work).
Began the inspection with my usual "rap" about what to expect during the inspection. The agent chimed in that this was a "pre-offer inspection".
The back-story is that this client had an offer accepted on a previous home (foreclosure) and decided not to complete the deal (he didn't get into details of why). Apparently, he had to jump through all kinds of hoops to get his earnest money back. This must have been last fall, as his previous inspector did not renew his license (IL renewal was Nov 31, 2008).
He and his agent thought that having an inspection BEFORE they made an offer on this property (a short sale) would alleviate the headaches if this property also was not up to the clients needs.
With the abundance of foreclosure/short sale properties out there, I was wondering if anyone else had used this method and what y'all think of it.
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Home Inspection and Investor Services, Clayton - Clayton, OH
Rick, I haven't run into a REO or Foreclosure buyer that was willing to spend the extra money until necessary. But I get pre purchase from investors all the time. Usually the pre purchase inspections are major system type.
May 24, 2009 05:19 PM
RE/MAX United - San Marcos, CA
Make the Call to Hankins and Hall
One thing to consider in our area is that a large percentage of "short sales" do not sale, which means that a buyer may hire an inspector many times before actually getting into a contract that closes escrow. The REO market for buyers is pretty competitive so there usually isn't enough time to inspect prior to making an offer.
May 28, 2009 06:49 AM
Schaumburg, IL
Schaumburg Home Inspector -
Thanks for the replies.
I think the whole idea is that the buyer does like the property and intends on making an offer.
Which generally means that they will (or should) get an inspection after the offer is accepted. As Steve and Dana both point out "it can be difficult to unwind a deal once an offer is made".
Inspecting before the offer makes it easier to unwind. I agree, the REO market may not be the best choice for the first time buyer.
May 31, 2009 02:22 PM
Schaumburg, IL
Real Estate Broker Retired
Good suggestion Rick. If a buyer feels uncomfortable at all we do the inspection first on REO's. Makes me feel more comfortable too knowing the buyer goes in with their eyes totally open.
Sep 03, 2009 07:00 AM
Investment Real Estate, LLC - Pembroke Pines, FL
I could never recommend my buyers spend the money for an inspection before they enter the competition for a property. One of two of those and your buyers will be seeking another agent. Thankfully our offer contracts allow buyers to escrow after the deal is accepted.
Jun 06, 2013 01:03 AM
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