Are Inspection Periods Killing Deals in Your Area?

[Jeff Morelock]

Multiple offers and highest and best offer deadlines are normal in the Pensacola Florida market, and have been for the last several months. But now, investor-buyers not only need to worry about out-bidding competition on price, sellers are also demanding that inspection periods be waived for fixer-uppers.

I guess it’s not all bad. Investors with the ability and confidence to walk into a property and accurately estimate rehab costs have a huge advantage in this market, but it looks like inspections periods are becoming deal killers – at least in hot markets.

Are inspection periods killing deals in your area?

[Bill B.]

I don’t see how inspection permits can be deal killers. They are usually 3-7 days so many other things are usually still going on past that. Otherwise bring a contractor or inspector with you when you look at it. Depending on the properties, just skip it. I’ve never used on in Vegas or my townhome in Mn. It just isn’t worth it. 

I think it’s more likely sellers are getting sick of buyers offering list or over list to get the property under contract and off the market. And then coming back to re-bid their offer based on problems they “found” after making their offer. Assuming most sellers don’t want to go back on market and others buyers have moved along.