Many people are waiving the inspection contingency to make their offer look more appealing. But should YOU?
This real estate market is the most challenging market we have seen since 2008. The combination of COVID and the lowest interest rates in years make it a unique situation. This is a complete seller’s market even though a home loan is easy to come by. Sellers are receiving multiple offers day one of their house being listed. Some houses are going up to 20% over asking price in the Seattle market. Many buyers are resorting to waiving the home inspection contingency. What does waiving the inspection actually mean to you?
The only pro to waiving home inspection is that it makes your offer more competitive. Every house in this market is a multiple offer situation, and sellers want to accept concrete offers that buyers can’t back out of. If you waive inspection there is no real “out”. With the inspection contingency you would be able to walk the property with the inspector. You could request that the owners do certain repairs or you can terminate the agreement. Without this contingency you are truly buying the property as is. This makes waiving the inspection more attractive to sellers.
On the flip side, if there is an issue with the property, it’s on you. A seller is required to disclose material defects, however sometimes they miss items (for whatever reason). Inspectors can catch any material defects that a seller hasn’t disclosed. If an inspector doesn’t catch a material defect and you find out about it down the line, the seller could still be liable. However, you would have to take them to court, and this would take time and effort on your part, and it is not a guarantee win. This is something that you could of prevented by a home inspection. A good inspector would also “over inspect” and report on items that are not material defect. A common example is a rusted gutter, or wear and tear that needs replaced. These are not material defects, but under the inspection contingency you could ask the seller to repair.
We do not recommend you ever waive the home inspection. If you found your dream home and want to make sure you win the bidding war, please think twice before waiving. If you choose to wave inspection, make sure you have a pre inspection. This is an inspection that is done before the offer is presented. You should also have enough money in the bank, after all the closing costs are accounted for, in case there are emergency repairs you need made. The home inspection contingency protects you as the buyer. If you have any other questions always reach out to your personal real estate agent. If you don’t have one get one asap. Not only can they help you find a home that fits your needs, but they are also there to protect you. If you have any questions, feel free to reach out. If you are in the greater Seattle area and are looking for a REALTOR, we would be glad to help you. Best of luck out there!