Offer Subject to Inspection – What Does That Mean?

As a Realtor I have a whole dictionary for just real estate jargon. ย One of the most confusing terms, and often buyers will get the wrong idea about their agent, is “offer subject to inspection.” ย So allow me a moment to explain what on earth this means.

“Offer subject to inspection” is a typical hurdle for buyers to overcome when shopping for homes that are tenant occupied. ย The term means – the buyer can physically go in and SEE the home AFTER an offer is accepted. ย Sounds a little backwards right?

And no – your agent is NOT trying to strong arm you and force you to buy a home without evening seeing it!

Generally this clause is for homes which are tenant occupied. ย In order to preserve the rights of the tenant to have the quite enjoyment of their home – the tenant has the right to refuse prospective buyers to come in and see the home. ย That is – until an offer is accepted by the seller, then the buyers has the right to inspect the home.

How does this work you ask? ย The buyer must write a REAL offer since the terms are binding once accepted. ย When the seller accepts the offer, the buyer will have a certain amount of days which is written into the contract to actually go in and see the home for the first time. ย If the home is to their liking and the buyer wants to proceed with the contract – they do. ย If the home is NOT to the buyers liking – for just about any reason – during the agreed upon days – the buyer will have the right to cancel the deal and walk away without any harm to both buyer and seller.

So you found a home you like – how do you write an offer? ย If there are inspections available before hand – it makes our job of writing the offer a bit easier since we have a good idea of what the condition is. ย If there are no inspections, and we haven’t seen the home, we drive by and gather as much info as we can with our eyes from the safety of the car. ย We write the offer as best we can with the information provided and once the buyer has seen the home and had inspections we proceed with the new information – either by moving forward or discussing the new information with all parties and find a common and suitable outcome for all parties.

As strange as it seems – it happens more than you know. ย For some buyers, they cannot imagine writing an offer for a home without ever seeing the home. ย For investment buyers, this very typical and generally have no issues writing up a fair offer to get in. ย Of course, what happens after a buyer gets to see the home is a far different story. ย I have experienced both follow throughs on the contract and recessions – so truly we cross that bridge together when we get to it.

Which is truly at the root of what us Realtors do. ย We are the buyers and sellers guides through Real Estate – what can The Caton Team do for you?

Got Questions? – The Caton Team is here to help. ย Email us at:

Info@TheCatonTeam.com

Visit our website at:ย ย  http://thecatonteam.com/

Visit us on Facebook: ย ย http://www.facebook.com/pages/Sabrina-Susan-The-Caton-Team-Realtors/294970377834

Yelp me at: http://www.yelp.com/user_details_thanx?userid=gpbsls-_RLpPiE9bv3Zygw

Please enjoy my personal journey through homeownership at:

http://ajourneythroughhomeownership.wordpress.com

Advertisements

Published by

Sabrina Caton - The Caton Team Realtors

A native Californian with a passion for residential real estate and writing. A full time Realtor with Berkshire Hathaway HomeServices - Drysdale Properties.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s