Make sure you think twice before waiving a home inspection in the current seller’s market. Although sellers often prefer offers without an inspection contingency, it can be a risky decision for buyers. The home inspection contingency allows buyers to find out what is behind the pretty facade of a home. Emotions often take over for buyers but remember, a home is probably the biggest purchase you will ever make, so purchase wisely. The way a home appears, or the price point don’t always reflect the actual condition of a home.
The inspection contingency gives buyers a way out of the purchase agreement. The inspector will let buyers know the current condition of the home, any repairs that should be made right away, and what possible repair costs to expect down the road. Any hazards, open permits, or work done not to code will also be revealed. Buyers can accept the home as is, ask the sellers for repairs, or walk away from the deal.
Some cities require point of sale inspections. Sellers must have their home inspected by an approved inspector prior to the sale, and provide the report to the buyers. Every city has different requirements, and often a regular home inspection is still done by the buyers.
Even a newer home may have issues that could cost a buyer a lot of money down the road. Unless you are prepared to invest a lot of money in the home, you should know what work and costs may be coming your way. A home inspection will help you estimate current and future costs for the home you are purchasing.
Don’t let your emotions get the best of you when you are in a multiple offer situation. Sellers do tend to prefer offers without an inspection because they won’t have to make repairs, and there is no contingency period for the buyers to back out. To make your offer more attractive, your Realtor may suggest a shorter inspection contingency period. If the home is in poor condition and you are planning on putting a lot of money in to fix it up, an inspection may not be necessary.
Your Realtor will be able to help you decide the best plan for you as far as having an inspection or waiving a home inspection. Always keep in mind that you need to be prepared should you waive the inspection only to find issues once you have closed on the home and settled in.