Is it true that we can’t get a house inspection after winning an auction?
Hi everyone, I’m not sure if this is the right place to post, but I could use some advice.
I’m currently in the market for a small townhouse, and I recently found one that was auctioned. We were hoping to conduct a building inspection after winning the auction but before finalizing the transaction.
However, the real estate agent informed us that this isn’t permitted. According to them, once you place a bid on a property, you have to go through with the purchase, and any building inspection must be done prior to the auction.
I find it hard to believe that I’d have to spend over $600 on inspections for every property I’m considering before bidding. Is this agent being truthful, or is there more flexibility in this situation?
It’s understandable to have questions about the home-buying process, especially in the context of auctions. Generally speaking, in many real estate auction situations, buyers are required to conduct their due diligence, including obtaining inspections, before the auction takes place. This is because once the property is sold at auction, the sale is typically considered final and you may not have the option to back out based on inspection findings.
However, real estate practices can vary by location and specific auction terms, so it’s essential to review the auction rules carefully. If the auction terms explicitly state that inspections must be performed prior to bidding, then the agent is likely stating the rules correctly. That said, it’s not uncommon for buyers to feel hesitant about spending money on inspections for multiple properties they may not end up purchasing.
If you feel uncertain or that the agent isn’t conveying the information accurately, consider seeking a second opinion from another real estate professional or an attorney who specializes in real estate. It’s always best to be well-informed before making significant financial decisions.