The risks of a buyer waiving inspections

If you are considering waiving a home inspection, you probably have one of these two reasons. Firstly, it’s costly, and you want to save on this expense. Secondly, if you are buying a home in a competitive market, you may think that every step in the buying process you can eliminate will help you get the house you have your eyes set on.

One of the steps you may feel like you can skip is a home inspection. You will probably think this would make your offer more attractive to the seller and speed up the buying process. However, this is a big no-no because there are many risks of a buyer waiving inspections.

Understanding a Home Inspection Contingency

A Home Inspection Contingency means a buyer can hire a home inspector to check the home for damages and underlying issues before closing the deal. If the inspector detects any significant problems, the buyer can negotiate the following steps with the seller. There will be two options. Firstly, they could arrange for the seller to carry out the repairs. Alternatively, they could legally give up on the deal without losing the deposit.

However, if a buyer waives a home inspection, they agree to purchase the house “as is.” Such an offer can be very attractive to the seller because they won’t be responsible for any issues the buyer finds that aren’t obvious. Also, it means that the buyer won’t know what exactly they are getting into until they become the owner of the house.

Before a home inspector gives you the green light, you shouldn’t rush into making any decisions.

An inspection will reveal things you can’t see

Skipping a home inspection when purchasing a home is never wise. And there is a very simple reason for that. The house you are interested in may seem perfect to the naked eye. But you never know what the walls are hiding. Many significant and costly issues can escape the untrained eye. So, no matter how much you like and want the house, don’t waive a home inspection. It will save you from many potential surprises, all of which are unpleasant. Also, regardless of whether you are buying an existing property or new construction, a home inspection is highly advisable.

A professional will know what to look for and where to go to see if there is a sign of trouble. The inspector will go to the attic and under the crawl space and remember to inspect the areas no layperson would even think of. Then, the report you receive will help you decide whether to proceed with the purchase or pull out of the deal. It will also be a powerful negotiating tool that may help you reduce the price or arrange necessary repairs.

So, don’t think that your judgment is enough. You may like the layout of the house, the location, and the style. But you cannot know if it is a good investment. To help you on your homebuying journey, you need to have some help. Firstly, you will need a good real estate agent to help you with the search. Then, you will need a home inspector to ensure you are purchasing a house in good condition and worth your money. Finally, you will need professional movers to help you settle in because, even though you have two options, it’s always safer to pay for entire service moving than to risk it with the DIY approach.

A buyer waiving inspections risks expensive repairs

As we have mentioned, a home inspection can detect some significant issues that can be costly to repair. If you waive this right and purchase the house as-is, you may risk spending thousands of dollars on making the house livable. Yes, home inspections can be expensive, but considering how much they can save you, they are well worth the money.

Painting your new home should be the only renovation project you will have to do after moving in.

What does a home inspection involve?

Here is what a home inspection typically includes:

• Home structure
• Exterior and interior
• Roofing
• Plumbing
• Electrical system
• Heating and Air Conditioning
• Ventilation and Insulation
• Fireplaces

You may also want to schedule additional inspections, such as a well inspection or specialized roof inspection.

Not only will a home inspection detect the existing issues, but it can also provide you with a detailed analysis that will reveal what might become a problem in the future. For example, it may not be necessary to replace or fix the roof immediately. However, it makes a considerable difference knowing when it may be required. The same goes for the HVAC system, plumbing, and electrical installation. All of these require extensive work and substantial financial investment. Thus, a few hundred dollars spent on the inspection before the purchase may save you thousands later or help you negotiate a better deal.

Safety concerns 

You cannot know how well your future home was constructed without a home inspection. Also, you cannot see if it is safe to live in. This is probably the biggest of all the risks of a buyer waiving inspections. Your potential home could have some serious structural issues you cannot see. The roof could also be a significant hazard. There could be mold or other hazardous materials you cannot recognize. You should not take these lightly, as your family’s health and safety are at stake.

Before you move into your new home, you have to be sure it’s safe to live in.

Your home may not be insurable

In an attempt to make your offer more appealing to the seller by waiving inspections, you may end up doing precisely the opposite. Some home insurance companies don’t issue policies without a documented inspection. And without a home insurance policy, you cannot get your final mortgage approval.

Conclusion

As you can see, there are many risks of a buyer waiving inspections. And if you choose to go down that road, you risk a severe case of buyer’s remorse. Remember, home inspections exist to protect the buyer, and you should take advantage of that. Buying a home is one of the most significant investments you will make in your life, so you shouldn’t do it blindly.

By Mary Aspen Richardson

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