I found a house I like. Should I perform inspections before I write an offer?

Yesterday’s blog post was “What is a pre-qualification letter and where do I get one?” Today we’re discussing when the buyer should have inspections done on the property.

Some buyers believe they should perform inspections on a property before they write an offer because they might find something in the inspections that causes them to not want to purchase the property. However, paragraph 7 of The Buy and Sell Agreement of the Greater Kalamazoo Association of REALTORS states “Buyer shall have 10 days from the last dated acceptance of this Agreement (“Investigation Period”) to investigate The Property.”

Why do the inspections after you have an accepted offer? According to The Buy and Sell Agreement of the Greater Kalamazoo Association of REALTORS, inspections are a contingency of the agreement. If the inspections find unacceptable conditions, the buyer may request the seller make corrective actions or may renegotiate the price with the seller. The excerpt below is from paragraph 7 The Buy and Sell Agreement of the Greater Kalamazoo Association of REALTORS.

If any inspection reveals conditions unacceptable to Buyer, Buyer shall deliver to Seller a written request for corrective action(s) along with a copy of any applicable documentation/report(s) AND ANY APPLICABLE WRITTEN COST ESTIMATE(S).

Not only can the buyer try to renegotiate with the seller, but a buyer can terminate the agreement if a condition is unacceptable to him/her. The excerpt below is from paragraph 7 The Buy and Sell Agreement of the Greater Kalamazoo Association of REALTORS.

If any evaluation or investigation reveals a condition unacceptable to Buyer, Buyer may terminate this Agreement in writing provided that such termination identifies the unacceptable condition and is delivered to Seller or Listing Broker within the Investigation Period.