How to Time Your Short Sale Inspection for Success

We know that short sales can be a great way to purchase foreclosed property at an appealing price. However, successfully timing your short sale home inspection requires finesse. It is important to understand what a short sale entails. Buyers should to wait for short sale approval before conducting an inspection. That being said, once approval is granted, it is equally as important to move quickly with a short sale inspection.

What Is a Short Sale and Short Sale Approval?

A short sale refers to the sale of a property for less than the amount owed on the mortgage. This typically means the seller has fallen behind on mortgage payments. As a result, the lender has agreed to accept a discounted payoff amount for the property. For buyers, a short sale presents an opportunity to purchase a home at a price below market value. However, the short sale process can be complicated and time-consuming.

Why Wait An Approval Before Getting A Short Sale Inspection?

We understand the desire to view a property as soon as possible. However, when purchasing a short sale, it is in the buyer’s best interest to wait for short sale approval from the lender before conducting a professional home inspection.

Avoid Wasting Money if Short Sale is Denied

The short sale process typically takes months. There is always a chance the short sale may be denied. If a buyer pays for a home inspection before approval, they risk wasting hundreds of dollars on a property they may never actually purchase. It is best to wait for written approval from the bank before spending money on inspections or appraisals.

Seller May Fix Issues if Inspection Done Too Early

Once a short sale is approved, the bank is motivated to sell the property as quickly as possible. If a buyer conducts an inspection too early, the seller has time to make necessary repairs before the final approval. This gives the bank leverage to ask the buyer to waive certain inspection objections. Therefore, the buyer loses negotiating power.

By waiting for approval before the inspection, the buyer can use any issues found in the inspection to negotiate the best price and terms. The bank has little choice but to work with the buyer or risk the deal falling through, as time is of the essence. Inspections give buyers the most leverage when completed as late in the short sale process as possible.

Reasons to Inspect ASAP After Short Sale Approval

As buyers seeking to purchase a short sale property, we strongly recommend conducting a home inspection as soon as short sale approval is granted. Waiting too long could mean losing out to competing offers or failing to uncover issues that significantly impact the value.

Find Critical Issues Early

Conducting an inspection early allows the buyer to identify any problems with the property before becoming legally and financially committed to the purchase. Major issues like structural damage, electrical or plumbing problems can be costly to remedy. Discovering these upfront gives the buyer leverage to renegotiate the best possible price or walk away if needed.

Negotiate From a Position of Strength

Any issues identified in the inspection report put the buyer in a better negotiating position. They can request necessary repairs, a lower offer price, or other concessions to offset the costs and risks associated with the problems. The sellers and bank will likely be motivated to work in order to get the short sale approved and completed. Without an inspection, buyers go into the negotiating process at a disadvantage.

Avoid Losing the Opportunity

Short sale properties often attract multiple interested buyers hoping to get a good deal. Conducting an inspection quickly after receiving short sale approval ensures the buyer has the first opportunity to submit an informed offer before another buyer swoops in. If too much time is taken to get an inspection done, the property could slip through and be sold to another party.

Getting an inspection done promptly upon approval is in the buyer's best interest. It allows them to uncover any issues with the property early, negotiate the best deal possible, and avoid missing out on the opportunity altogether.

Solid Rock Home Inspections, Clearwater, FL, Short Sale Inspection In Tampa Bay

Call The Short Sale Inspection Professionals At Solid Rock Inspections Group Today

Inspecting a property before short sale approval could lead to wasted time and money if the sale falls through. However, waiting too long could mean missing an extraordinary buying opportunity. Carefully weigh the best time to inspect based on your risk tolerance, need to negotiate repairs and market conditions in your area. With the right strategy, you can time inspections to maximize your chances of a smooth purchase. When you are ready to schedule a short sale inspection, call Solid Rock Inspections Group at (727) 386-8627 or contact us on our website here. Quick scheduling and fast turnaround make us an ideal partner in your short sale strategy.

Share this: