As a Realtor I have a whole dictionary for just real estate jargon. One of the most confusing terms, and often buyers will get the wrong idea about their agent, is “offer subject to inspection.” 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. The term means – the buyer can physically go in and SEE the home AFTER an offer is accepted. 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. 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. 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? The buyer must write a REAL offer since the terms are binding once accepted. 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. If the home is to their liking and the buyer wants to proceed with the contract – they do. 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? 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. 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. 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. For some buyers, they cannot imagine writing an offer for a home without ever seeing the home. For investment buyers, this very typical and generally have no issues writing up a fair offer to get in. Of course, what happens after a buyer gets to see the home is a far different story. 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. 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. Email us at:
Visit our website at: http://thecatonteam.com/
Visit us on Facebook: 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: