A home sale is contingent on many things. One contingency is a home inspection.
A real estate home inspection protects the buyer from investing in a property that will never appreciate due to frequent maintenance needs and the costs that go along with them. An inspection may be needed for insurance purposes, as well. However, in recent years as the real estate market in Columbus, OH, has been fluctuating, more and more buyers are actually waiving inspections as a contingency.
One of the reasons for this is that buyers are trying to make their offers more enticing to prospective sellers. After all, an inspection will cost money and may reveal things about the property that the owner will need to take care of. However, any buyer or seller should understand that a real estate inspection allows the buyer to cancel the contract if it is found that essential repairs need to be made, so it provides a very critical protection for buyers.
It’s also important to understand that a real estate inspection needs to be carried out by a licensed and independent home inspector. Here at Vutech | Ruff, Corcoran Global Living, we always want our clients to be educated, because the home buying/selling process can be very confusing. Read on as we walk you through a hot topic in the current real estate market: waiving home inspections.
Why Waive an Inspection?
It’s understandable why a seller would be willing to agree to waive a home inspection. After all, the inspection will cost money and may result in the inspector recommending serious work. But why would a buyer want to waive an inspection? In today’s real estate market, competition among buyers is incredibly fierce. From making full cash offers to waiving a home inspection, many buyers are looking for a way to stand out among the competition and land a home. The main reason a buyer would want to waive an inspection is to make their offer more attractive to the seller. However, you may also be willing to waive the inspection if you:
- Have capital set aside to deal with repairs and maintenance apart from the home cost
- Have experience with carpentry or home renovation and plan on taking the responsibility of repairs onto your own shoulders
The Dangers of Waiving an Inspection
No matter what your situation is as a buyer, you should know about the pitfalls of waiving an inspection. Such pitfalls include:
- Overpaying on a Home – Only an inspection will reveal whether a property is truly worth the asking price.
- Taking on Repair Costs – When you relinquish your right to an inspection, you may be setting yourself up to pay more money down the road. Waiving an inspection frees the seller of the responsibility of having to pay for any repairs.
- Voided Warranties – Some warranties will be invalidated if it turns out that an inspection of the home was not carried out when it was purchased. This could cost the buyer more money on repairs and replacements.
Contact Us for More Information
It is risky to waive a home inspection – especially since there are other ways to make your offer more appealing to buyers. Instead of an itemized home inspection, you could opt for a general inspection which determines a “pass/fail” rating for the house. You can also negotiate a repair cost cap with the seller. For more resources on how to navigate the home buying/selling process, contact us here at Vutech | Ruff, Corcoran Global Living.