With demand still high and inventory remaining on the low side, buyers are doing all that they can to put their offer above the competition. A popular tactic? Opting to waive a home inspection. However, ask any real estate expert for their opinion on this and more often than not they will tell you that skipping out on a home inspection is not in your best interest. So what is the reason behind this view, and what can homebuyers do instead to make their offer more attractive? Read on!
Why a home inspection is necessary
Having a home inspected ensures a few things. For one, it confirms that the home is worth the price you’re paying for it. Unless a home is brand new, there’s a good chance it’s in need of some repairs that may not be visible to the untrained eye. A home inspection costs a few hundred dollars and can save you tens of thousands of dollars if issues are identified.
Is it legal to waive a home inspection?
In some cases, a mortgage lender will require a home inspection. Otherwise, it’s up to the buyer to waive it if they choose. Lenders are not so much concerned with necessary repairs as they are with the value of a property, which is determined by an appraisal and is required.
Pros and cons
When it comes to home inspections, the pros vastly outweigh the cons. As previously stated, the $300-$400 you’ll spend getting your home inspected is minimal compared to the potential cost of home repairs, some of which may even be deal-breakers. When it all boils down, peace of mind is priceless.
Home inspection contingencies
A ‘contingency’ is a condition that must be met in order for the purchase contract to be binding. Basically, if there is a home inspection contingency, the buyer has the right to terminate the contract if the inspection reveals necessary repairs that the seller refuses to repair. With this type of contingency, a buyer may cancel the contract during the inspection for any reason.
Is waiving a home inspection ever okay?
The few instances where it may be okay to waive a home inspection are if the buyer has a trained eye for potential issues, is confident in handling repairs on their own, or is planning to demolish the home.
How to have an attractive offer without waiving the inspection
In order to sweeten the deal without waiving the home inspection, buyers can do a few things: offer to pay cash, eliminate other contingencies, opt for an earlier closing, or even offer to shorten the length of your inspection period. Another alternative is to get the home inspected without requiring the seller to make repairs or reduce the price. This simply gives the buyer the opportunity to back out of the contract rather than putting pressure on the seller.
All in all, buying a home is the biggest purchase many will make in their lifetime, so ensuring that there won’t be any repair surprises is extremely important. If you’re a first-time homebuyer or are just trying to navigate the current market, give The Coastal Marketing Group a call at (609) 884-4242 with any and all questions. Our expert agents are here to guide you through the home buying process as smoothly and efficiently as possible!
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