4 Risks of Waiving Your Home Inspection
In today’s red-hot housing market, competition is stiff. About two-thirds of all buyers find themselves in a bidding war, and with for-sale listings in such low supply, many are willing to pull out all the stops just to win a house.
One of those stops? That’d be the inspection contingency.
That’s right: Buyers are regularly waiving the home inspection in hopes of standing out with sellers.
While it’s true that skipping the inspection may help you win in a bidding war, it also comes with some pretty big (and often expensive) risks that must be considered.
Are you thinking of waiving your home inspection to win out on a house? Here are four risks to think about before you do
1. There could be unknown safety hazards.
Home inspectors look at your property from all angles. They assess the structure, the systems, the materials, and more, and they make sure it’s safe and hazard-free for your family. They look for things like mold, pests, and asbestos, and they can also help you spot lead-based paint and other potential health risks.
Without their help and waiving your home inspection? You may unwittingly find yourself in an unhealthy or unsafe living environment.
2. You’ll have less negotiating power.
A home inspection report is a great negotiating tool. If the inspection reveals that repairs are needed, you can use the report to negotiate the price down, get closing credits from the sellers, or even ask the seller to make the fixes themselves. All of these options mean a better-condition home and more bang for your buck.
3. You might have costly repairs in your future.
If there’s no home inspector looking for defects and repairs, you’ll be left to find those out on your own — and it could be much sooner than you’d like. What if you move into the home only to have the plumbing leak two months down the road? If you are waiving your home inspection, make sure you have a hefty emergency fund just in case.
4. You’ll know less about the home — and the maintenance it requires.
Your home inspector will assess the age and condition of the house — as well as all its systems and components. This can be very helpful in gauging expectations and setting up a maintenance schedule. For example, they might determine that the roof is 20 years old and has only a few years left before it needs replacing. Armed with this info, you’d be more apt to watch your roof’s condition (and save up for that replacement).
The bottom line about waiving your home inspection
Home inspections are important, so think long and hard before you decide to skip one. And don’t forget: Waiving the inspection isn’t the only way to get a leg up on the competition. Getting pre-approved can help too. Consider Embrace Home Loan’s Approved to Move™ program instead.