Don’t Waive Your Home Inspection
Think twice before waiving a home inspection.
Nobody should recommend that the buyer waive a home inspection during a real-estate transaction. A home inspection is a consumer protection action that protects the buyer’s investment and the health and safety of their family. In recent years, especially in competitive markets like Columbus, the number of buyers willing to waive a home inspection has increased.
First, what does it mean to waive the home inspection?
Waiving a home inspection typically means giving up the home inspection contingency. This contingency works to protect buyers from hidden defects and issues present on the property and discovered by a licensed home inspector. Sellers are legally obligated to disclose known defects, but the seller may not be aware of the issues found in a home inspection. If an issue is discovered, say a shifting foundation only viewable from a crawlspace, that significantly impacts the value of the home, the contingency allows the buyer to cancel or renegotiate the contract. Regarding the outcome of a home inspection, there is no pass or fail for a preexisting home. There is only information that you can weigh assure and de-risk the purchase at the contracted price point. Know what you are buying.
Why waive a home inspection?
Potential buyers typically waive a home inspection to make their offer more competitive. By giving up the contingency, the seller doesn’t have to worry about the buyer breaking the contract upon the discovery of issues. This significantly weakens the buyers position and protection. It’s a huge risk and unknown. In some cases, it may increase the speed of the closing process by removing the time needed to inspect and negotiate. From the seller’s perspective, it’s easy to see why waiving a home inspection is great. But even if you think your property is free of issues, are you sure?
How to compromise.
Another option that can increase the competitiveness of an offer and still keep you safe from hidden problems and emergencies is not asking for remediation. This allows you to retain your right to break the contract should the inspection uncover problems but agrees that you won’t ask for the seller to fix anything. Some buyers even designate a low end remediation cost to the contract. For example, an offer may state that the buyer won’t ask for remediation on up to $10,000 worth of estimated repair. If significant issues are discovered on the roof with an estimated $20,000 cost the seller can protect themselves.
Final thoughts.
At the end of the day it’s up to the buyer to make a good decision for themselves with input from their real estate professional. In the event you do waive your home inspection contingency, I have a final piece of advice. Get the home inspected either way, even after closing on the property. Any hidden issues and costs won’t go away because they weren’t discovered and will only get worse with time. A home inspection provides crucial information. It’s a guide for the home and helps you ensure a healthy environment and protect your investment.