The Pre-Offer Walkthrough: What to Check Before You Bid

Photos hide things. Listings leave things out. A walkthrough before you make an offer gives you a working read on condition, scope and cost. It's not a replacement for a licensed inspector during your contingency period. It's how you decide whether the deal deserves one.

Start outside

The exterior tells you most of the structural story.

• Foundation: step cracks in block, gaps around windows and doors, leaning walls
• Roof: age, curling or missing shingles, sagging ridgelines, number of layers
• Drainage: soil sloping toward the house, missing gutters, pooled water
• Siding and trim: rot, cracked stucco, loose brick
• Windows and doors: condition, operation, single-pane glass
• Driveway, walks, fences, outbuildings

Then go inside

Work room by room and note what drives cost:

• Floors: level, soft spots, what's under the carpet
• Walls and ceilings: stains, cracking, fresh patches
• Kitchen and baths: refresh or full gut
• Layout: walls that would need to move, a missing bathroom, awkward flow
• Smell: mold, mildew, pets, sewer
• Signs of past water, like warped floors or stained baseboards

Kitchens and bathrooms are usually the biggest line items in a cosmetic rehab, so spend extra time there.

Check the expensive systems

Four systems can blow up a budget:

• Roof: see above
• HVAC: age on the data plate, type, whether it runs
• Electrical: panel brand and size, wiring type, any knob-and-tube or aluminum branch wiring
• Plumbing: galvanized or cast iron lines in older homes, water heater age, slow drains

Some findings should stop you and force a hard recalculation: active foundation movement, a failed roof with interior damage, outdated wiring throughout, signs of a broken sewer line, or a house too full of belongings to see the floors and walls.

Turn what you saw into an offer

Example, round numbers only: You planned a $40,000 cosmetic rehab on a house with a $280,000 after-repair value (ARV). The walkthrough shows a 25-year-old roof and an original electrical panel. Add $12,000 for the roof and $8,000 for the panel. Your rehab is now $60,000. Holding the same profit target, your max offer drops by about $20,000. If the seller won't move, you pass, and you saved yourself $20,000.

After the walkthrough, answer three questions: Did the scope grow? Is there still enough room under the ARV? Can you still hit your schedule? If you're unsure on any of these, reflect it in price, contingencies or structure.

What this means for you

A disciplined walkthrough makes your offers stronger and your contracts stickier. You'll ask for fewer price cuts later, keep your reputation with sellers, and hand your lender a scope that matches the house.

Have a property you're about to bid on? RSC Fix & Flip loans can fund up to 95% LTV on the purchase and 100% of the rehab, within the program's total-cost and ARV limits. Send us your scenario for a term sheet in 24 hours. Subject to underwriting.