Thanks to a competitive seller’s market, a deepening shortage of homes for sale, and the need to outbid the competition, are some reasons why homebuyers waive a home inspection altogether to secure their dream home. While we strongly advise that you do not follow this practice, it seems to be a risk that some homebuyers are willing to take.
The biggest fear homebuyers faced during the start of the pandemic included allowing a real estate professional to enter their home. Events such open houses, inspections, repairs, and showcase events were halted because of COVID-19 restrictions. Therefore, the number of homes on the market shrank significantly. Also, more people began working from home and children were being homeschooled. Families realized that their home situation was not what they wanted or needed. This fueled a desire to improve their living situation, and added additional challenges to overcome in a competitive housing market.
It is a Seller’s Market!
Should homebuyers waive a home inspection? When the government reduced interest rates due to economic concerns, increasing demand in real estate created a booming seller’s market. This led to multiple bids on the same home and increased the selling price over the asking price. (Sometimes bids reach as much as $50,000 or more which is not unheard of). As a result, many buyers dropped their home inspection contingency to gain a competitive advantage when submitting their bid. (Offers like these can be very attractive to the seller. That’s because the seller would not be responsible for any repairs and the buyer would be purchasing the home as is.)
Homebuyers due reserve the right to bypass the home inspection altogether to guarantee that they will secure the home they want. However, when they do they can also overlook the fact that they could be inheriting significant issues that come along with purchasing a new home. What homebuyers may be surprised to learn is that they can still schedule a home inspection. Even after finalizing the sale of their new home.
Why Would a Homebuyers Waive a Home Inspection?
In a seller’s market competition is fierce, homebuyers are willing to take risks to win the home that they want. The one thing you should never do, though, is forgo a home inspection.
For buyers, bypassing the option to have an inspection contingent on their offer can be detrimental over time. The seller may favor a bid from a homebuyer who is willing to bypass the home inspection. That’s because there may be issues that seller may not want to address. This could lead to thousands of dollars in repair cost for the buyer.
Without a home inspection, the buyer loses the opportunity to learn more about the home’s actual value, negotiate a lower selling price, find major problems, and ask the seller to make necessary repairs. Home inspectors don’t just look at the home; they provide a detailed analysis that highlights any current issues and things that may become problematic later on.
A home inspector visually examines the home and prepares a report listing items that require further evaluation or repair. Waiving the home inspection contingency is rarely worth the risk. As a homebuyer, you lose the opportunity to know precisely what type of home you are buying. You are also taking of a risk of having to pay for costly repairs. In addition, there may be some things that could even pose health risks to your family. The home inspection not only provides an extra layer of protection but it can also help you to plan for the future in your new home.
An Alternative Home Inspection Solution
Suppose you are a homebuyer that is considering bypassing the home inspection process altogether. In that case, there are some alternative options available to you that you may want to consider that benefit both you as the buyer and appeal to the person selling the home.
A 4U Inspection Services Solution:
The buyer can inform the seller that they would like an inspector to conduct a home inspection for informative reasons. In return the buyer will not hold the seller responsible for any repairs. This makes it more appealing to the seller to accept their offer while keeping the buyer informed of the actual cost of their investment.
What is an After Purchase Home Inspection?
While a homebuyer can no longer negotiate any repair or closing costs with the seller, an after-purchase home inspection provides the buyer with some insight into the home’s actual condition and helps them budget for any repairs that may be needed in the future.
There is no difference between a home inspection after you buy the home compared to before you buy the home. A home inspector will still conduct a visual examination of the home’s interior and exterior to look for any signs of water damage, plumbing, electrical, foundation, etc., issues as they typically would during any other home inspection. An after-purchase home inspection also allows the homebuyer to address the essential repairs first. They can also take their time researching trustworthy and reputable contractors who can help them make those repairs.