@Mindy Jensen
This was all very well put, I completely agree. Especially with that last paragraph
I believe new investors should always have the inspection contingency in place. After you have done a couple rehabs, or if you have a solid background in construction you can start to waive the contingency if need be. If you have this sort of background really all you are paying an inspector for is TIME - you can find the exact same items that would come up during an inspection if you put 2-4 hours walking thru the property. Upon first glance, a lot of things get missed, so if I’m putting in multiple offers or if it’s just not feasible to spend an hour or two walking thru the property then I will add the inspection contingency.
Sellers know that when someone puts an offer in with an inspection contingency, they can expect to possibly need to reduce the price after the inspection occurs. Or some of them just want the deal to close and don’t have time for a month and a half to go by. Some may be hiding some things that they know would come up in an inspection that a newer investor or home buyer may miss.
When I do rehabs, I usually waive the inspection contingency. I look at the big ticket items - roof, siding, windows, boilers, electric (knob and tube?), foundation, and if I’m not gutting it all the way to the studs- I look at the walls- are we dealing with sheetrock or plaster?
Keep in mind I have used the inspection contingency to get some great deals, my first two family I ever bought i went up against 15 other bids so offered 10k above asking but left the inspection contingency in place, I was then able to negotiate it down to asking price. I also had another 3 family I bought that was listed for 215k, had it under contract for 193k and then after the inspection, negotiated it down to 180k.
It really depends on the deal, the amount of interest in the property, and your experience level. If you find a deal on the MLS and every one and their mother is going to be putting in an offer on it, my advice would be to offer more and leave the inspection contingency in place.
Haven’t had a chance to read the whole thread but my advice is based on single or small multi family properties. Larger multi is an entirely different topic.