A home inspection contingency can make or break a deal and this is no secret to seasoned realtors and home owners. By having one written into an offer can not only save buyers time, money, and frustration, but also prevent them from purchasing a space that could literally be on the edge of collapse.
By having an inspection contingency buyers can negotiate or even back out of an offer if the inspector finds something severely wrong with the property, as long as the inspection is done within the timeframe specified in the offer. But with a market as competitive as today’s is, many buyers are going to extreme lengths to secure the home of their dreams, including waiving an inspection contingency and signing up to buy a house without knowing what lies beneath. If you do this, any repairs needed, from a broken dishwasher to new plumbing, become the full responsibility of the new homeowner.
In the past taking a gamble on a house like this was unthinkable, but nowadays realtors are seeing more and more people are willing to take this risk. With sellers getting dozens of offers, every bit of advantage helps. What seller would risk losing out on a good offer just because something was wrong with the house? And if the house looks good, why not go for it?
If this prospect sounds tempting, here’s what you need to know about potentially waiving an inspection:
No realtor worth their salt is going to recommend it
A home purchase is probably the biggest purchase of your entire life. You go through a prospective house for like 30 minutes and then start waiving inspections (over) something that costs over a million dollars. Most people tend to spend more time picking out new wardrobe!
A full home inspection can unearth everything from structural issues, roof problems, or faulty electricity and plumbing. If the thought of dealing with any of these gives you a major headache, you’re better off following the recommendation of your realtor.
You could win you a house, but it’ll cost you negotiating power
What if you are eyeing an old Victorian home with a beautiful, detailed staircase. But what may have looked glamorous was actually a hazard because your inspector found the stairs were sagging and were at risk of collapse. Now if you have an inspection contingency in your offer then you are able to renegotiate the selling price down in order to accommodate the cost of replacing the stairs.
Similarly, the inspection contingency can also give you the option to back out of a deal. What if you have decided to purchase an older home but you find out it has a huge foundational issue found during an inspection. The inspector informs you that the home is at risk of crumbling entirely, well as the client you have the option to walk. However, if you waive your inspection contingency, you won’t have that option…and could be facing a crumbling foundation beneath your new dream home.
There are ways around waiving a contingency without losing a home
Many sellers are trying to avoid accepting an offer if it means they could lose money based on negotiations after an inspection. But there’s ways to appease both parties. Area buyers can actually agree to pay up to a certain amount in repairs when making their offer. This lets the seller know the offer is serious, but gives the buyer a proper inspection and an out if the repairs cost too much.
Buyers can also opt for an informational inspection. In those cases, a full inspection will occur, and the buyer has the option to walk away based on the results, but they can’t re-negotiate the offer for the costs of repairs.
Even if you want to skip an inspection pre-purchase, you’re still going to need one eventually
Buyers are missing more than what repairs are needed to their home when they waive an inspection. They’re missing out on learning how their home ticks. It is recommended to have a post-purchase inspection just to know what you’re getting into even if the offer is signed. And don’t give into the temptation to turn a blind eye to what might need to be repaired.
Looking to list your home? Call Greg Broadbent at 860-460-6939 or visit us online at gregbroadbent.com