How important is an inspection report?

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  • The house I have under contract for 125k should sell for 175k-190k as is. I have started the clean up work and removal of stuff from the house. As I stated before, I will not do any work to the house other than clean up. I remember on a HBS call there was talk about an inspection report. The only thing the home needs is flooring, piant and a fix to a small leak in roof. I called some inspectors and they charge $250-$325 for a house inspection report. The owner does not want to spend any money as he is pretty broke and eager to get his house sold. Is an inspection report vital for a HBS? If so any ideas?

    If you are certain it will sell and will get a good chunk out if it doing so, get the inspection done yourself and take another thousand off for doing so. Hey, you are taking a risk it doesn’t sell and if you have to shell out some cash up front, you are eligible for a reward.


    The inspection is VITAL for a successful HBS on a continuing basis (the exception being a pure wholesale junker with obvious issues to rehab – like the termite damaged one I’m doing this weekend and advertised it as such). Your example calls for the inspection since it will put buyers at ease, especially potential owner occupants. However without flooring and with a roof leak, I suspect it will not pass bank financing requirements until both are remedied. You will be limited to cash buyers (who are the target anyway.)

    I’ll suggest that you get him to reduce the strike price by $3-5k if you must pay for the home inspection. It costs you about a week of your focused time to put on a good HBS & the seller needs to understand that he needs to “help you help him”.

    Or, if they absolutely won’t come down appreciably on the strike price, what thing of value (especially toys) does the seller have that you might trade for the price of a home inspection? Maybe a car, boat, motorcycle, a gun collection, top of the line riding lawn mower, season tickets to a sports team, etc. – anything you can swap/resell for much more than the price of an inspection (unless you really need his used RV, etc). If you walked around his home & yard, you probably spotted something.

    Good luck,


    The inspection is VERY important when doing a Highest Bidder Sale because:

    (1) if gives the buyer all the information they need to make a decision quickly.

    (2) you avoid buyers wanting to submit a contingent contract — contingent on an inspecation.

    (3) for liability purposes, you DID disclose, disclose, disclose everything you know about the house. There is a lot more to the house than what you see. Behind the walls, under the sinks, in the attic, etc… The inspection report will reveal all the warts so the buyer can make an intelligent decision. Note that some buyers will want to get their own inspector there. Tell them they are welcome to but it HAS to be done during the 2 day open house.

    You should NOT accept a contract that is contingent on an inspection or anything else.

    If the numbers are as good as you say, it will sell easily. The inspection report will help get the price UP UP UP Without the inspection report, there will be doubt and it will cause the house to sell for much less.

    You also need to have information on taxes, schools, average utility costs, and any other information that will help buyers make a decision to buy.

    let us know now it goes


    What’s been said were thoughts I already had…just wanted validation. I’ll spend the money for the report and for sure make it up. What about those that come in wanting to bid and buy with bank lending? I don’t want a 30 day escrow, waiting all day for banks. I want this done fast once the HBS is complete. I know a cash buyer will make it fast but I wanted to ask about those with lending. Thanks agian.

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