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