I have heard that if you make your offer subject to an inspection, you have no chance of winning a bidding war. Is that true?

In most cases, you will not win a bidding war if you make your offer subject to an inspection. This is the case even when the sellers have nothing to fear from an inspection.


To understand this, look at it from the home sellers’ point of view. Let’s say they are looking at four offers. Three of them have no inspection as a condition of the sale while one has included an inspection as a condition of the sale. If the offers are similar, the one with inspection attached will be the first one rejected, even if their home is in immaculate shape.

That is because inspections have been used by buyers to get out of an offer. The home sellers fear that the buyers may “cool off” on the home by the time the inspection is done. They may even find another home they like better. As well, with any condition such as this if the buyer decides not to proceed the seller loses the sale and then is left to return to the market with hopes of an equal or better offer.

The offers without inspections are viewed as “solid”. The one with the inspection is only “possible”. To win this particular bidding war, the offer with the inspection would have to be for significantly more money than the other offers. Offering “significantly” more money for a home is not a strategy to avoid overpaying.

But this does not mean you have to make an offer without an inspection. This can be dangerous. A home is a big investment. You should have it checked out by an qualified inspector before you make an offer. This as well will provide you with the confidence that other buyers won't have being that you had performed due diligence and now have comfort of knowing the status of the home.

Your REALTOR® can explain how to get this done before the offers are made. In this way, you can be protected and still compete on an equal basis with other buyers. If you would like to have a FREE Report on knowing how to select the  right Home Inspector, please email your request and include the following:

• In the subject line, specify the FREE Report: Choosing a Home Inspector 
• Your name
• Full mailing address 
• Phone number

to FreeBloggerReport@jeffstern.com

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