Offer contingent on U&O
I'm working on getting my first rental property this year and had a question for the experienced masses. Can you make an offer contingent on a successful U&O inspection (or a non-exorbitant one)? Basically the area I'm looking at is notorious for strict and often costly U&O inspections. And most investment properties are listed as "buyer responsible for U&O" even though it is technically the seller's responsibility. I'll always make an offer contingent on a general inspection but I don't want to move past the point of no return and find out the U&O requires $8k above my planned reno budget. Just wondering if it's even possible. Or do I find a home inspector familiar with the area who can catch those problems early and give me an out if they're too costly? TIA for the wisdom.
Most Popular Reply
@Elizabeth- you can definitely add this as a contingency in your offer, but as Patrice mentioned the seller may not accept...
.
In my case, my seller wouldn't accept this, or even meet me halfway however during due diligence I was able to receive a copy of their last U&O inspection report (Which they failed) luckily the report had very specific items to fix, and when I matched that up with my standard inspection report (Who I did through Pillar to Post in Philly) my inspector had more or less caught and called out all of the things in the U&O report.
The U&O report I was given in due diligence enabled me to then budget for the renovations accordingly - which I don't anticipate being too bad (Many of the changes were building code related, smoke alarms, etc) I know it would depend on the property however!