Waving The Home Inspection Is A Big Gamble.

By
Real Estate Broker/Owner with Kolsky Realty & Management 01311273
http://actvra.in/56pS

 

Waving The Home Inspection Is A Big Gamble.

 

 

 

As a home buyer, you want to make your offer as attractive as possible. But waiving the home inspection may sound like a great strategy, but it is a big gamble at the very least. And here’s why.

 

Buyers in a competitive housing market need to sharpen up their pencil before making an offer, so they don’t get beat out by others buyers. Besides offering a quick closing date or more than the asking price, some buyers might be tempted to agree to waive the home inspection.

 

Agreeing to waive the home inspection isn’t such a great idea and could be a big gamble that’s not worth taking. Sure, the home may look amazing to the eye, but it is the things that cannot be identified (and or) the things beyond the surface that can turn your gamble into a gigantic mistake.

 

Here are just a couple of examples of what a typical buyer might have no clue about until they get the home inspected by a professional home inspector. Typical buyers have no idea about the electrical system, the water heater, the HVAC system, the roof, and the plumbing. Typical buyers won’t be able to see termite evidence or spot asbestos among other things in the home, as well.

 

Here’s what buyers need to keep in mind when it comes to waving the home inspection. In spite of loving the home or how fervently attached you are to it, buying the home without having it inspected by a professional can work out badly in the long run. Just imagine a few months down the road, and you’re all settled into your new home. You won’t be happy when you go to turn the AC on and realize it doesn’t work — and then you’ll be kicking yourself when you find out it is going to be $15,000 to replace the system.

 

Not only is buying a home a major deal, but buying a home is also strenuous and emotional, too, and you don’t want to get caught up and make a big mistake; it can cost you a small fortune and or worse. Buyers that are experiencing bidding wars and are several months into the home buying process start to think less clearly, and that’s when things can start to go sideways.

 

One good alternative solutions to satisfy your need to inspect, while remaining competitive is to write a one-day or two-day inspection contingency into your offer. By writing a one-day or two-day inspection contingency – this will allow you the opportunity to inspect the home, and at the same time, it allows the seller comfort that they won’t lose momentum if you walk away. And when you do inspect the home, and it passes with flying colors, then you can waive your inspection contingency because you’ve inspected already.

 

In a seller's market (particularly when there are multiple offers) often there is a small window of time between when offers are due, and when the deal starts to go forward. Buying a home is the biggest asset of your life. Markets change, and you don’t want to find yourself in a home you can’t afford or, much worse, can't get out of because issues you missed by waiving inspections. Bottom line; you want to move quickly to give yourself a competitive edge, but you have to be smart at the same time.

 

 

NOBODY DOES IT BETTER

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Re-Blogged 3 times:

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Topic:
Real Estate Best Practices
Location:
California Los Angeles County Long Beach
Groups:
The Lounge at Active Rain
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Old Farts Club
Tags:
buying a home
home buyer
home inspections
home inspections are nothing to mess around with
waving home inspection

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Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Michael Jacobs ~ MJ, that is another great alternative that works. If the buyers want the home bad enough and don't mind getting out in front of their skis - paying prior allows the buyer the confidence to submit their best offer

Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC ~ flippers usually don't mind forgoing the inspection, but even then, sometimes, they end up paying for that decision

Aug 11, 2017 10:15 AM #39
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Tony and Suzanne Marriott, Associate Brokers ~ you guys are awesome.... THANK YOU

Joshua Frederick ~ you are right - I know there have been many cases where flippers gambled and lost... It's just not worth it unless you don't care about money

Aug 11, 2017 10:18 AM #40
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Ron Tissier ~ unless you have unlimited amounts of money - I agree with you

Sheila Anderson ~ thank you! And I thought the image worked well with this post, too

Aug 11, 2017 10:20 AM #41
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Rebecca Gaujot ~ it's just too big of a risk

Aug 11, 2017 10:21 AM #42
Rainmaker
41,917
Debra Donovan
Transpac Real Estate - San Francisco, CA
San Francisco Real Estate

Great advice. Another think we do up here in San Francisco is have buyers do a pre-inspection if an inspection report is not provided by the seller. It does mean the buyer is spending money on a home they don't yet own, but doing the inspection prior to writing an offer allows the buyer to waive the inspection without the risk and shows the seller their commitment to the house. I've seen where it has made a difference several times. May not work in all markets, but in our very competitive market it can make the difference.

Aug 11, 2017 11:41 AM #43
Rainmaker
1,970,019
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

I agree, Jon...it is too much of a risk to waive inspection contingencies... and when I have a client who wants to do it, they sign off on the NC Professional Services Disclosure form that they waived it despite my advice not to (because you just know the first time something big goes wrong they'll say we never told them to get an inspection).

Aug 11, 2017 02:02 PM #44
Rainmaker
38,930
Steve Bracero
Heisler and Mattson - Shrewsbury, MA
First Time Homebuyer and Investor Specialist

A home inspection is a must! It creates a more educated buyer for the biggest purchase of their life! 

Aug 11, 2017 05:11 PM #45
Rainmaker
1,009,308
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Home inspections can turn up all sorts of issues that aren't visible. I think waiving the home inspection is a huge gamble as well.

Aug 12, 2017 04:11 AM #46
Rainmaker
352,226
Suzanne Strickler
Realty Mark Associates - Havertown, PA
School is never out for the Succesful.

Jon Kolsky - I agree that it's such a gamble that when I represented 💰 buyers who wanted to forgo the home inspection, I asked them to sign an addendum declaring that they were doing so against my professional advice.

I don't want their mistake to turn into my paying for it with a lawsuit. 

Aug 12, 2017 06:00 AM #47
Rainer
359,447
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH
CRS

Agreed 100%.

We get buyers to sign off on getting their inpseciton whatever they choose to do in writing, so they don't comeback later claiming the agent never suggested home inspections

Aug 12, 2017 11:17 AM #48
Rainmaker
3,128,661
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Jon

There should a home inspections  on all sales including as is sales . . . .  It shows what condition of the home is.   

Good luck and success.

Lou Ludwig

Aug 12, 2017 08:06 PM #49
Rainmaker
3,128,661
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Jon

Congratulations on a well earn feature for your post.

Good luck and success.

Lou Ludwig

Aug 12, 2017 08:07 PM #50
Rainmaker
117,879
Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA
Future Home Realty - Seminole, FL
Providing the integrity and service you deserve.

Completely agree. Even in a multiple offer situation I would strongly discourage waving the inspection. Just too risky. 

Aug 13, 2017 09:06 PM #51
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Debra Donovan ~ doing a pre-inspection is another alternative that works. And I wouldn't be surprised if that happens a lot in your neck of the woods. And you're right -  in a competitive market it can make a big difference

Nina Hollander ~ great call! For those buyers that waive the inspection, make sure you get them to sign off on it

Aug 14, 2017 10:53 AM #52
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Steve Bracero ~ on a purchase you need to be certain about the condition and guessing is a fool's game

Kat Palmiotti ~ you just need to know, and from there you can make the best decision on how to move forward

Aug 14, 2017 01:29 PM #53
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Suzanne Strickler ~ super smart... And if they don't want to take our advice we should at least get them to sign-off on it

Sham Reddy ~ at one point - that's all we can do

Aug 14, 2017 01:34 PM #54
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Lou Ludwig ~ thank you!!!! And yes - buyers should know the exact condition before they move forward

Stavrula "Sam" Crafa, RNC,GRI, CDPE, PSA ~ I agree - it's just too big of a risk

Aug 14, 2017 01:36 PM #55
Rainmaker
471,705
Karen Feltman
Cedar Rapids/Iowa City, IA Lepic-Kroeger REALTORS - Cedar Rapids, IA
Relocation Specialist

Agreed!  The cost of of an inspection is a small price to pay for peace of mind.  It is one of the largest investments that most people make, it is worth the few hundred dollars to make sure that everything is as it seems.  It is easy to get caught up in the heat of the moment and make this mistake.  Great post.

Aug 14, 2017 06:01 PM #56
Rainmaker
1,178,496
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Karen Feltman ~ thank you! And you're right! Buyers have to be careful and not get too caught up in the moment, otherwise, big mistakes happen

Aug 15, 2017 11:17 AM #57
Ambassador
3,510,163
Praful Thakkar
eXp Realty - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Jon Kolsky - as much as we all know it is a gamble, sometimes a desparation sinks in - and buyers who want to outbid the other buyers 'let go' home inspection - and I do not recommend that to anyone - except investors who perhaps are getting the home at pennies on dollars.

Aug 15, 2017 11:30 PM #58
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