Check out the newest multifamily investors podcast in our next series, Smart Real Estate Investing!
If you’re looking for places to improve your investing strategy, today Marcia and I discuss inspections versus selling as-is from a seller’s perspective.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Smart Real Estate Investing – Part 1
René Nelson: Hey, Marcia. Today, let’s talk about what’s happening with sellers and As-Is offers, so I’m gonna just pose a bunch of questions that I think our listeners have. We know it’s a heated market, we know it’s a crazy market with multiple offers…
Marcia Edwards: Right, exactly.
René Nelson: And remind the listeners, what’s the median house price right now.
Marcia Edwards: 385 right now.
René Nelson: 385. Okay, wow. Okay. You, in a couple of shows previous, had multiple offers, I think you had 10.
Marcia Edwards: Yes, and I’ve seen up to 26 on a home. There’s some areas, some markets where there’s such a pent-up demand, it’s crazy, we’re standing in line to show it.
René Nelson: Okay. So I’m a seller, you’re representing me as the listing broker, and we look at all these offers and we pick… Let’s start with cash. We pick a cash offer, but in there, it says that there’s an opportunity for the buyer to do inspections, and it’s a normal 20-day or even a 10-day inspection window. What does that mean for the buyer? Obviously, they can come through and do all their inspections, but what if they find stuff? How do you deal with that as a listing broker?
Marcia Edwards: You can’t really tell someone, no matter what you find, we’re still in… It’s very rare. Anyway, I should say that I’ve seen waving of the due diligence period or the inspection period that can happen, and that’s basically buy it tomorrow because you don’t get any time for additional investigation. So there is that alternative. But generally, what you’re seeing is people saying, “For information purposes only, we want to get inspections done.”
Now, there’s also in that inspection period that’s provided, it gives an out, so there is a way for the buyer to get out if they don’t like the findings. Not asking for you to do anything doesn’t mean they don’t wanna understand what they’re purchasing and make the decision with the full knowledge of the context of the condition of the property.
René Nelson: Okay. And I have to tell the listeners, if you’ve lived in a house for five years, 10 years, you really want that buyer, an opportunity to do their due diligence and inspections because you don’t want a buyer later to come back and say, “You knew, you hid a defect and you didn’t tell me about it, and now you’re liable.”
Marcia Edwards: One way of handling that, if you don’t know the property, it’s in a state or something, you could get an inspection in advance of putting on the market, put that inspection out to propose buyers so that they get the information of the condition and what they’re offering in the context of the condition or the deferred maintenance, etcetera, at the time of the offer. The more they have earlier on, the better, the likelihood of success in the closed escrow.
If you’re looking to part with your investment property, René can help you make the most from your property’s sale. Schedule a 15-minute discovery call to better understand your investments and the market today.
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