Should I allow the buyer to do a pre-inspection before making a formal offer?
Dear Phyllis,
I inherited a home from my aunt and am planning on getting it listed for sale. In the meantime, a neighbor is interested in purchasing it for their son. I told them how much I wanted, and they asked me to do a pre-inspection before making a formal offer. What do you think?
Leticia
Dear Leticia,
In my experience, each inspection report differs from another. I have seen as many as three inspections on the same property, each with different findings. Whenever a home buyer conducts inspections and shares them with the homeowner, they must disclose them to future buyers. If your neighbor doesn’t qualify for financing or decides against opening escrow, their inspection could hinder a future sale.
If you were to hire a Realtor, they would likely request a written offer from any potential home buyer. Although I am not an attorney, in my experience, verbal offers in real estate are not binding. Your Realtor would also likely request that the buyer submit proof that they can obtain financing (pre-approval letter). And evidence of their down payment.
I suggest your neighbor provide you with a pre-approval letter, proof of down payment, and a written offer. Verify their ability to qualify and then allow them the opportunity to inspect. Assuming they approve the condition of the property, you can open escrow.
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Purpose of the home inspection
