Buyer wants to do an Inspection?
Investor · Member since 2022 · 78 posts · 42 votes
Buyer wants to do an Inspection?
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1yQuote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
I would say this is the exact opposite. Most buyers want to do an inspection... Why would you not allow a buyer to do an inspection?
7e investments53 Reviews
24 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes1y
Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
I would say this is the exact opposite. Most buyers want to do an inspection... Why would you not allow a buyer to do an inspection?
7e investments53 Reviews - Investor · Member since 2022 · 78 posts · 42 votes1y
Thanks for your reply Chris. Great name!
The argument that was posed was that they're just trying to say they want to buy the contract, but in reality, they're just tying up the contract so no one else buys, and so they can swoop on the property after the 30-days is up. So additionally, that there's only 30 days to close and it eats up time for an inspector to schedule time to come.
Do you allow inspections of your contracts?
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes1y
Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
That is one of the strangest things I've heard. The large majority of buyers get inspections. We don't tend to get them when buying from a bank (because they usually won't budge on price) or wholesaler (who often provide an inspection) but do our own thorough inspection. But almost all homeowners and most investors do inspections after getting a property under contract.
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Andrew Syrios:
Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
That is one of the strangest things I've heard. The large majority of buyers get inspections. We don't tend to get them when buying from a bank (because they usually won't budge on price) or wholesaler (who often provide an inspection) but do our own thorough inspection. But almost all homeowners and most investors do inspections after getting a property under contract.
Thanks for your insights! I might be explaining this poorly. I'll quote the book, in the section how to vet buyers from fake buyers (other wholesalers).
"All our deals have no inspections contingencies, are you okay with that? If they bark at this, they're not your buyer. Most aren't financing, their flipping , so no inspections are generally needed. Or 7-14 day inspection periods."
It does sound odd to me that there are no inspections allowed. From your experience, it sounds like wholesalers who are selling a contract they have, conduct and provide some type of inspection? Is this correct? Is it an official inspection or some notes on paper? - Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes1y
Quote from @Chris Magistrado:
Quote from @Andrew Syrios:
Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
That is one of the strangest things I've heard. The large majority of buyers get inspections. We don't tend to get them when buying from a bank (because they usually won't budge on price) or wholesaler (who often provide an inspection) but do our own thorough inspection. But almost all homeowners and most investors do inspections after getting a property under contract.
Thanks for your insights! I might be explaining this poorly. I'll quote the book, in the section how to vet buyers from fake buyers (other wholesalers).
"All our deals have no inspections contingencies, are you okay with that? If they bark at this, they're not your buyer. Most aren't financing, their flipping , so no inspections are generally needed. Or 7-14 day inspection periods."
It does sound odd to me that there are no inspections allowed. From your experience, it sounds like wholesalers who are selling a contract they have, conduct and provide some type of inspection? Is this correct? Is it an official inspection or some notes on paper?This wouldn't surprise me from a wholesalers point of view. The line "not your buyer" is quite a bit different than "not a buyer." And an inspection contingency just means that your emd is hard immediately. They will often still let you do an inspection, particularly to put together a scope of work. But they won't allow you to retrade on it and if you back out because of what you find, you'll have to sacrifice your earnest money.
- Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes1y
Your reading of that section isn't exactly what I would take away. He doesn't say no inspection, he says no inspection contingencies. Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report. Typically those purchasing cash aren't inspecting every home, they're walking it or having their go to GC walk it and already know what they see that may be a concern.
The wholesalers I purchased from it was always the same. Any DD you want to do, inspections, code enforcement lookup etc you're welcome to do but there are no contingencies so once you go UC you buy or lose the $5K.
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Matt Devincenzo:
Your reading of that section isn't exactly what I would take away. He doesn't say no inspection, he says no inspection contingencies. Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report. Typically those purchasing cash aren't inspecting every home, they're walking it or having their go to GC walk it and already know what they see that may be a concern.
The wholesalers I purchased from it was always the same. Any DD you want to do, inspections, code enforcement lookup etc you're welcome to do but there are no contingencies so once you go UC you buy or lose the $5K.
I'm so glad you and @Andrew Syrios responded. Your replies make so much sense. I was really thinking there I'm not suppose to let the buyer see the property. As someone who eventually wants to buy, I don't see that making much sense. You both have explained it perfectly. Thanks so much for your insights!
- Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes1y
What starts out crazy, ends crazier...
Got a whole lot of folks (they're not buyers) hovering over your property on a wing and prayer that they don't have to close. And, yes, inspection deficiencies can hurt your valuation because once they are disclosed, you are required to disclose those to future buyers. Buyers should always do an inspection; it's a requirement in my private client firm. So my question: do you have a buyer - or someone wasting your time?
- 1yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Most buyers will want to do an inspection. If you are planning on selling, contact a realtor to make sure you are getting a fair value for your house. In a lot of places, waiting until spring to sell is better.
- Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes1ySure thing Chris, glad to help and good luck!
Quote from @Chris Magistrado:
Quote from @Matt Devincenzo:
Your reading of that section isn't exactly what I would take away. He doesn't say no inspection, he says no inspection contingencies. Meaning that if you fund a $5K EMD and then decide not to close you lose the EMD, or you pay for an inspection up front and risk missing out on the deal while you're waiting for the report. Typically those purchasing cash aren't inspecting every home, they're walking it or having their go to GC walk it and already know what they see that may be a concern.
The wholesalers I purchased from it was always the same. Any DD you want to do, inspections, code enforcement lookup etc you're welcome to do but there are no contingencies so once you go UC you buy or lose the $5K.
I'm so glad you and @Andrew Syrios responded. Your replies make so much sense. I was really thinking there I'm not suppose to let the buyer see the property. As someone who eventually wants to buy, I don't see that making much sense. You both have explained it perfectly. Thanks so much for your insights!
This is very strange to me. Typically we allow 10 days for inspection & due diligence. During those 10 days, if they find issues they want repaired, compensated for, its negotiated. If they want to void the contract, it has to be done within those 10 days. I'd be cautious of a seller that refuses to allow buyers to inspect the property.
- 1yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
The input you are receiving from this wholesaler is garbage. Essentially all legit buyers will get an inspection. I will never buy a property without an inspection.
I don't know any investors who purchase without an inspection, though I hear about this mythical "no inspector" purchaser from time to time, by way of the rumor mill or pompous listing agent.
Perhaps this "no inspection" buyer existed 2-3 years ago at the height of the market. But no way is this a thing right now in the vast majority of cases.
- Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes1y
We usually have inspection clause in our agreements for no more than 10 days after EMD is completed.
- 1yFrank PyleBusiness MemberSpecialist · USA · Member since 2024 · 279 posts · 130 votesHey there! That’s an interesting perspective from the wholesaler you spoke with. While I get where they’re coming from, there are definitely situations where a buyer asking for an inspection can be totally legitimate.
Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
Sometimes, buyers want to ensure they’re making a sound investment, especially if it’s a property that might need some work. If you do decide to allow an inspection, just keep an eye out for a few things: make sure they’re serious about the purchase and not just fishing for information, and try to get a sense of their intent. It can help to ask them why they want the inspection and what specific concerns they might have.
Ultimately, it’s about trusting your gut and assessing each situation individually. So, while it’s okay to be cautious, it’s not always a hard no on inspections. Hope that helps! - Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Frank Pyle:
Hey there! That’s an interesting perspective from the wholesaler you spoke with. While I get where they’re coming from, there are definitely situations where a buyer asking for an inspection can be totally legitimate.Quote from @Chris Magistrado:
I'm doing my research and I came across wholesaler who said if the buyer is requesting an inspection, they aren't a real buyer, probably just a wholesaler trying to scope the competition or lock up your contract.
I'm wondering if there is ever the case where an Inspection is OK from the buyer, and if so, what are some things to lookout for? Or is it always the case that if a buyer is asking for an inspection, to simply say no.
Sometimes, buyers want to ensure they’re making a sound investment, especially if it’s a property that might need some work. If you do decide to allow an inspection, just keep an eye out for a few things: make sure they’re serious about the purchase and not just fishing for information, and try to get a sense of their intent. It can help to ask them why they want the inspection and what specific concerns they might have.
Ultimately, it’s about trusting your gut and assessing each situation individually. So, while it’s okay to be cautious, it’s not always a hard no on inspections. Hope that helps!That's great advice Frank! In your experience what are some ways I can understand the intent of the person who said they're interested in buying?
- Investor · Member since 2022 · 78 posts · 42 votes1yYes, this make a lot of sense. As a buyer, I would want to inspect what I'm purchasing.
Quote from @Scott Trench:
The input you are receiving from this wholesaler is garbage. Essentially all legit buyers will get an inspection. I will never buy a property without an inspection.
I don't know any investors who purchase without an inspection, though I hear about this mythical "no inspector" purchaser from time to time, by way of the rumor mill or pompous listing agent.
Perhaps this "no inspection" buyer existed 2-3 years ago at the height of the market. But no way is this a thing right now in the vast majority of cases.
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Andre Brock:
We usually have inspection clause in our agreements for no more than 10 days after EMD is completed.
So they have to do all their inspections in that window? Are you required to show that inspection report to any other potential buyers and/or report it anywhere? (I honestly don't know)
- Investor · Cleveland, OH · Member since 2013 · 120 posts · 77 votes1y
No if potential buyer have given you emd than you are under the assumption this is a serious buyer and will close on the deal but he has only a certain amount of time with his inspection period so if he backs out you still have time to fund another buyer.
- 1yFrank PyleBusiness MemberSpecialist · USA · Member since 2024 · 279 posts · 130 votes
Quote from @Chris Magistrado:
Yes, this make a lot of sense. As a buyer, I would want to inspect what I'm purchasing.Quote from @Scott Trench:
The input you are receiving from this wholesaler is garbage. Essentially all legit buyers will get an inspection. I will never buy a property without an inspection.
I don't know any investors who purchase without an inspection, though I hear about this mythical "no inspector" purchaser from time to time, by way of the rumor mill or pompous listing agent.
Perhaps this "no inspection" buyer existed 2-3 years ago at the height of the market. But no way is this a thing right now in the vast majority of cases.
Here are some indicators to help you assess a buyer's seriousness:
- Questions: Serious buyers will ask detailed questions about the property, such as maintenance costs, neighborhood amenities, and property taxes
- Strong Offer: If a buyer makes a strong offer quickly, it often indicates a high level of interest and intent to purchase
- Private Buyers: If approached by a private buyer, ensure they provide a Letter of Intent (LOI) and proof of funds.
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Frank Pyle:
Quote from @Chris Magistrado:
Yes, this make a lot of sense. As a buyer, I would want to inspect what I'm purchasing.Quote from @Scott Trench:
The input you are receiving from this wholesaler is garbage. Essentially all legit buyers will get an inspection. I will never buy a property without an inspection.
I don't know any investors who purchase without an inspection, though I hear about this mythical "no inspector" purchaser from time to time, by way of the rumor mill or pompous listing agent.
Perhaps this "no inspection" buyer existed 2-3 years ago at the height of the market. But no way is this a thing right now in the vast majority of cases.
Here are some indicators to help you assess a buyer's seriousness:
- Questions: Serious buyers will ask detailed questions about the property, such as maintenance costs, neighborhood amenities, and property taxes
- Strong Offer: If a buyer makes a strong offer quickly, it often indicates a high level of interest and intent to purchase
- Private Buyers: If approached by a private buyer, ensure they provide a Letter of Intent (LOI) and proof of funds.
Gotcha, that makes a lot of sense. Thanks Frank!
- Residential Real Estate Agent · Atlanta, GA · Member since 2009 · 381 posts · 134 votes1y
Well... I have a couple of buyers that will purchase without due diligence. They usually spend one day going through the property checking everything for a couple of hours and move forward. But buying without any inspection is rare. If you want to sell this property, you need to let someone inspect it at least once and the discount for due diligence needs to be worth it.
- Wholesaler · Riverside County · Member since 2024 · 5 posts · 2 votes1y
Buying site unseen is a huge risk unless the buyer and wholesaler have a history doing deals together.
My buyers trust the deals that I bring them, but I also provide them with in-depth inspection reports along with photos/videos of the inspection along with multiple cost to completes through multiple contractors. This verifies the numbers even though they more often than not will always do their own due-diligence and come up with their own numbers.
- Real Estate Consultant · Columbia, MD · Member since 2017 · 160 posts · 55 votes1y
Legitimate buyers might request an inspection for due diligence. Some buy sight unseen!
To protect your deal, you can:
- 1. Limit the inspection timeline (e.g., 1-2 days).
- 2. Ensure the buyer provides a non-refundable earnest deposit.
- 3. Only allow inspections after the contract is signed and locked in (if possible).
Ultimately, gauge the buyer's credibility—are they responsive, experienced, and able to close? Not every inspection request is a red flag!
- Investor · Member since 2022 · 78 posts · 42 votes1y
Quote from @Trevor Finn:
Legitimate buyers might request an inspection for due diligence. Some buy sight unseen!
To protect your deal, you can:
- 1. Limit the inspection timeline (e.g., 1-2 days).
- 2. Ensure the buyer provides a non-refundable earnest deposit.
- 3. Only allow inspections after the contract is signed and locked in (if possible).
Ultimately, gauge the buyer's credibility—are they responsive, experienced, and able to close? Not every inspection request is a red flag!
This is great advice! Thank you guys so much!
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