Why Not To Waive Your Inspection In This Market
A home inspection is one of the most important ways to protect yourself when buying a home. Home inspection is an intensive assessment of the fundamental systems, physical structures, and appliances. It happens after a buyer and seller have found common ground on the purchase price and signed a purchase agreement to seal the deal.
Buyers request for home inspections. The aim is to help them get a professional opinion of the physical condition of the building by a neutral third party. According to Keyrenter New England, assessment gives the buyer the information they need to make an informed decision on whether the home is a good deal or not, based on the condition of its physical structures, crucial systems, and appliances.
There are three primary reasons for doing home inspections:
- Sellers are often under no obligation to disclose their property’s condition. Some sellers will even go as far as hiding facts about a building if they will negatively affect the sales price.
- Most buyers are not experts on buildings. They look at the house from the perspective of its appeal. They do not have the knowledge, skills, or tools to detect underlying problems with the home.
- Buyers need to know that they are getting their money’s worth. If they have information about issues that can cost them money in the future, they can factor those into the negotiations.
Why buyers waive the home inspection and reasons why it is a bad idea
Home inspections protect buyers and help them get the best deal when buying a home. Why would any buyer ever think of waiving the home inspection if this is the case? That happens quite often in a seller’s market. In a seller’s market, buyers are at a disadvantage because the inventory of for-sale homes is low, and you have many buyers chasing the few available homes.
Buyers may waive the home inspection:
- When they are in a bidding war with other buyers; waiving the home inspection can make their offer more attractive to the seller and help fend-off competing bids.
- To save costs; Buyers who look for ways to reduce the closing expense on the home may decide to waive the home inspection.
- To accelerate the purchase process; A buyer might think it proper to waive their right to have a home inspection to complete the purchase faster.
Why you should not waive a home inspection
Waiving the home inspection is never a good idea in any situation. Here is why
1. You can’t tell the condition of a house just by looking at it
Buyers often waive the home inspection because they assume a home that looks good must be in good condition. But the truth is many of the more significant issues with a house are often invisible to the average buyer and can be stressful once you own the house. A property can be on the edge of collapse, and you would not know it unless you have the professional training to detect such things.
2. You could saddle yourself with enormous costs for years to come
A home inspection can save you from buying a home with significant defects. Some of the problems with a home may only become apparent many months after purchasing the house. Furthermore, those issues can keep taking money out of your pockets for years to come. To make matters worse, you may not find another buyer to take the property off your hands.
3. You really can’t avoid the home inspection
The only thing you can do is waive a pre-purchase home inspection. But after you have bought the building, you will eventually need a home inspection to determine what work the house needs. But by then, you will no longer have the ability to use the home inspection as a negotiating tool to get a better price for the property.
Instead of waiving the home inspection, do this
If you are toying with the idea of waiving the home inspection, you can:
- Include an escalation clause in your purchase offer: This automatically increases your bid by a certain amount above any competing offers. So even if another buyer comes in with an offer higher than yours, the seller knows they can still get, say, $1,000 above that offer from you.
- Be fully approved: If you can show the seller a mortgage preapproval letter, you gain the edge over buyers who cannot. It shows you are serious and have the means to close the purchase.
- Request an informational inspection: Informational inspections are different from an inspection contingency in that you waive your right to cancel the transaction based on the findings of the home inspection. With an informational inspection, you cannot ask the seller to pay for issues you discover. It isn’t the best, but it will let you know what you are getting into.