There is no denying that we are in an incredibly complex market right now. With multiple offers coming from every direction and cash buyers outbidding regular buyers, it's at a point where we commonly hear that buyers have waived their right to an inspection in order to get their offer accepted. So, is it a good idea to waive the inspection? Let me walk you through it!
What is an inspection?
The inspection is the point in the process where the buyer is allowed to have a third party look at the house and determine what issues might occur. From simple fixes like a loose bolt to more problematic issues like structural or electrical complications, an inspector will identify these to give buyers a clear idea of what they're buying.
Why are buyers waving the inspection?
There are several reasons why buyers are opting for this, and it's fair to remember that every situation is different. However, here are a few of the most common reasons
- Multiple offers - With listings barely making it through the weekend, it's one way to make an offer stand out.
- Buyer burnout - After having offers declined, it can feel exhausting to keep trying to find the right home.
- High competition - How do you even compete with multiple cash offers?
- Appealing to sellers - This could highlight the offer if the seller isn't responsible for concessions or fixes.
- Expedite the process - Skipping the inspection could move closing up a week or two.
So what's my opinion?
Again, this market is incredibly intricate, and each situation is different. Suppose you are extremely confident in the home (and I mean 100% ready to take on the risk), then it might be something to consider. However, 99% of the time, I would advise AGAINST waiving the inspection. Buying a home is a HUGE undertaking and one of the most financially significant investments most people make in their lifetime. While a house might look newly remodeled, there is still the potential for more costly repairs like a new roof, foundation issues, or electrical safety items that need immediate attention.
Will I lose my earnest money?
This all depends on the wording in the contract. To secure your earnest money, work with me! I have experience writing clear and concise offers that ensure your earnest money is refundable in the event that the inspection comes back with some issues. While it's not always necessary to back out, you deserve the peace of mind when it comes to your money.
What happens after the inspection comes back?
Once we receive the inspection back, you should review it with your REALTOR® and determine if there are any issues that you'd like the sellers to address. From the seller's fixing issues directly to buyer credits, there are several options if you'd like to remain under contract, and I'd love to put my negotiation skills to use for you!