Updated over 4 years ago on . Most recent reply
Advising Investors in Current Market
Hey everyone, I've been a real estate agent in Northern Kentucky for about two months now. I am working with investors and we are finding great deals but our offers are losing to offers that are waiving inspections, agreeing to pay the difference if it under appraises and offering over asking sight unseen. Another note to add is that most of these offers are on properties that don't have completed property disclosure forms.
I understand that this market is "unlike any other" but I haven't been in the business long enough to compare this market to those in the past. My questions to the BP community are:
1. Has waving inspections and appraisal contingencies always been a popular strategy in winning offers or is this becoming more popular in the current market?
2. If yes, at what point do you agree with your client that waiving inspections to get the deal is a good idea? By that I mean what do you see in a property that makes it worth taking that risk?
3. Are you more cautious when purchasing a property that doesn't have disclosures?
Looking forward to your replies. Learning more and more everyday from the BP community.
Most Popular Reply
@Brett Slusher This is just my humble opinion, but if you're planning on doing a complete flip, the inspection may not be a big deal depending on price and ARV. That's one of the big advantages of van offers.
I'm also of the mind that I'd like to know if there are any issues with the foundation and roof so I know to adjust pricing for that. Maybe just contingency on foundation inspection.
So I think it depends on the investor, risk tolerance, and goals. If I'm in your shoes, I wouldn't take it personally and just keep working within their numbers.