HELP - Foreclosures and contingencies to home inspection

[Nick SyWassink]

Aright Guys, 

   We found this property (foreclosure) well below market values $35.00 sq ft.  I left a contingency for a home inspection, in case there is something I am not seeing. 

    However there is now multiple offers on the property and they have given us until monday to make our best offer.   Our agent told us that we should drop the home inspection contingency and up our offer.  She said that most people do not have that contingency on a foreclosed property.  

    I am planning to get in there with my contractors monday, to define my costs a little more thoroughly before making an adjustments to our original offer.  

    I am looking for your opinion.  Do we leave the home inspection in the offer or take it out?   

[Brian Pulaski]

I always leave the inspection contingency out, as I do my due diligence before making an offer. Know what needs to be done, know the bank will not be fixing it, and base your best offer on that. With that said I won't make an offer on a septic property without that inspection contingency in place. I have been bit by the failed septic before.

With many offers, banks don't want the play where someone locks the house in with a high offer, has it inspected and then asks for $20,000 off the price. Some investors do this and it seems like banks want to avoid it (hard to blame them).

Get in there with your contractor, get a solid idea of the numbers and offer your best without a contingency. It gives you the best chance to be successful!