Should You Waive Your Home Inspection?
In a hot real estate market, buyers often have to fight their way into their dream home.
Given the speed of the market, finding a home inspector who isn’t booked for multiple weeks may be difficult. Some home contracts may state that you have only a set amount of time for an inspection to be completed – or you may have to waive your home inspection. If your realtor is unable to help you find an inspector in a pinch, you might wonder is it ever okay to waive your home inspection?
Depending on the age and condition of the home, this may be more or less risky for you – the home buyer.
The Risks of Waiving Your Home Inspection
The purpose of home inspections to be aware of any major issues within the home you are looking to purchase. Your home is an investment and likely the most expensive purchase you’ve ever made. A home inspector can help you identify any costly repairs that may change your mind or the amount you’re willing to spend.
You spend a couple of hundred dollars for a certain peace of mind that could save you tens of thousands of dollars. Many pricey home repairs may not be something that you can see without a home inspector – mold, water damage, HVAC damage – etc… all that can be pricey after you’ve already invested in your home.
Many realtors don’t think it’s appropriate to advise a buyer to waive their inspection without explaining the risks. A waived inspection may be perceived as a better offer increasing the chances of acceptance, however, if you find out that the home has a huge defect upon move-in, this is hardly a win for any party as it puts your realtor/broker at risk, and depending on the state you’re in, the seller may be on the hook for costly repairs that weren’t disclosed. This is hardly an ideal situation for any party.
How to Avoid Waiving a Home Inspection
There are other strategies aside from just waiving your home inspection. Obvious options are offering a higher purchase price and/or a larger deposit. You could also offer an inspection contingency or a mortgage contingency. However, your realtor may have other suggestions such as a faster closing, larger deposit, that may be less risky for you as a buyer.