One of the most crucial elements of home buying is the inspection. Whether you're buying an investment property or a primary residence, a good home inspection can give you an overall picture of the condition of the property–foundation to roof, electrical, plumbing, HVAC system, drainage, hardscape, pool and spa equipment, pool surface, etc.
Understanding what you're getting into before writing the final check is crucial. The Inspection's contingency period is designed to allow the buyer through the escrow period–a reasonable time to investigate and make an educated decision on whether to go forward with the purchase or cancel the transaction based on the findings.
REO (Real Estate Owned ) properties and Short Sale properties are sold in "As Is" condition, but it does not mean that you should not have your inspection.
Most of these properties have been neglected and have numerous deferred maintenance issues. Discovering them will help you assess the "deal" that you're getting and the costs associated with fixing problems.
In the California Residential Purchase Agreement form, the buyer is "Strongly advised to to conduct investigations of the entire property in order to determine its present condition." On the other hand, the contract is also states: "Seller has no obligation to agree or to respond to buyer's requests." (for repairs or credit).
Do your home inspection. Not only will you be more informed about the property that you are buying, you might even get some credit for repairs.