In this highly competitive real estate market more and more buyers are competing and trying to win out in multiple offer situations are waiving the inspection contingency in hopes that the seller will accept their offer over others. With this changing market some buyers have begun to use the pre-offer inspection method for making an offer on a home and waiving or passing on the inspection in the buying process.
Benefits of doing a pre- offer inspection
It may feel like you are going overboard in ordering an inspection before even making an offer, but there are a few good reasons why people do this.
It can help a buyer to stay focused on properties that fit their wants and needs. For example, it may be a good idea when a property seems too good to be true. Putting an offer on a home that could be problematic is time wasted, especially in a market with little inventory.
Buying a home as-is. This means the seller has communicated there are issues with the home but they do not intend to fix them in any manner. In this case, it is more likely the seller is going to expect some requests for pre-offer inspections. You want to know what you will be getting into and if it is really worth the reduced price.
It can help you to submit a more realistic offer. When you know what is going on with the home it can help you to determine what would be a reasonable price to pay.
It can help to reveal the commitment for both parties. If both parties agree to the pre-offer inspection it shows all parties involved are highly motivated in the sale.
DRAWBACKS TO A PRE-OFFER INSPECTION
Being super proactive to try and get ahead of the rest of the interested buyers could work against you in these ways.
You need permission from the seller first, an inspection should never be performed without the seller’s knowledge
Taking extra time for a scheduled inspection without the commitment of an offer could be off-putting to the seller and it may lead them to not look at your offer at all just from the request
It is a higher risk to pay the money for an inspection before you intend to purchase a home. A per-offer inspection also does not hold the seller to any obligation of not accepting another buyer’s offer
Still on the fence and have some questions ? Please feel free to reach out. info@inspektpro.ca or by phone 604.308.2156
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