Look Before You Leap – Usually

home-inspectionIn the current seller’s market in Orange County, a buyer may be tempted to write an offer before they actually preview it. I do not recommend you do this! You may be tempted to do so since competition is so fierce, and other buyers are making offers subject to inspection. If you do decide to do this, keep a couple things in mind…

Homes are usually not perfect. They may need new appliances, a new roof, have water damage or need some termite work done. These are not low-cost items. Take the age of the home into consideration and the likelihood it may have these types of issues before writing an offer sight unseen. If the home is a distress sale (bank-owned or a short sale) then it is more likely to have issues. The owner may not have had the wherewithal to maintain the home if they are behind in their payments. Sometimes a seller may fix a few things or provide a buyer with a credit after a home inspection discloses issues. But with a distress sale, this may not be an option. Sometimes a seller may not be in a position to fix things nor will they be motivated to provide a credit, especially if other buyers are waiting in line to buy it if you back out.

Sometimes a seller’s agent will not even consider an offer from a buyer who has not even seen the home. They know there is a higher likelihood of this type of buyer backing out or causing issues in escrow due to the risks being taken.

If you are confident of the home’s condition and are familiar with the floor plan and neighborhood, and have some extra cash to make repairs and are motivated enough to take a risk, then it might be the right move for you….especially in this crazy seller’s market.

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