The housing market is still red hot from the perfect storm caused by the pandemic. While it’s a great time to sell homes, home buyers are facing fierce competition because of limited inventory. Despite the financial impact of the global crisis, it didn’t deter people from purchasing homes beyond their price ranges. From writing love letters, minimizing demands, and going over the asking price, buyers will do whatever it takes to survive the real estate competition.
In a competitive housing market, prospective buyers are also waving house inspections to increase their chances of getting their offer accepted. While others see this as a proven way to score properties, it is sad that people are resorting to ill-advised and drastic measures. Waiving the inspection means removing the burden from the seller, resulting in higher consideration for the buyer’s price offer on the house.
In a pandemic-fueled housing bubble, a rising number of buyers are waving the home inspection contingency, which is supposed to allow buyers to cancel the deal or request repairs if they find existing issues in the house. Although this technique can be tempting to gain the seller’s favor, foregoing the home inspection is never a great idea. You never know if the house has hidden issues in plumbing and electrical work or if you need to hire furnace installers to tackle the broken heating system.
Before planning to waive the home inspection, it’s important to know what you’re getting into. With that in mind, here are reasons why you should never skip a house inspection when buying a home.
Reveal hidden, costly problems
At first glance, a prospective buyer will only spot the obvious surfaces of a property. Things may look great from the outside, but behind those walls lie issues with structure, plumbing, wiring, or even more.
A home inspection provides an in-depth understanding of the home’s current state, including its appliances and systems. It can help you determine the severity of repairs and their potential costs. By waiving the home inspection, you’re allowing major issues to go unresolved. Issues with the plumbing, roof, HVAC system, and home’s foundation cost a large sum of money to repair, and by buying a house without the inspection contingency, you’re accepting all financial responsibilities for addressing these repairs.
With a home inspection, you can ask the seller to address them before closing the offer. If the issues are worse than predicted, you can still back off from the deal.
Detect safety hazards
When moving into a new home, you want to ensure you’re safe and comfortable regardless of the amount you paid. This is particularly critical for families with small children. The most important function of a home inspection procedure is detecting potential issues that endanger the occupants’ safety.
Besides undetected home issues, waiving the inspection can pose health and safety risks to your family. A professional home inspector has the expertise to spot potentially hazardous problems, such as decaying plumbing materials, old electrical wiring, or pipes tainted with lead.
Severe structural issues, such as sloping floors, cracked walls, and other damages to the home foundation are also signs of an unsafe living environment. Once the inspector detects these issues, they will coordinate with a reputable contractor to inspect and fix the issues as needed.
Gain a negotiating power
Home inspections help buyers prevent overpaying. In a competitive housing market, buyers are willing to pay a premium for their dream homes. But paying a top-dollar home isn’t an excuse not to address the repairs and unreported issues.
Performing a home inspection is a perfect opportunity for buyers to reassess their offer, renegotiate as needed, or even back away from the deal if it’s not a practical investment. Buyers have the power to negotiate the house price twice, which includes the first offer and after the inspection. Skipping the inspection forfeits your chance to adjust the price accurately according to the existing home condition and future repairs.
If a buyer purchases a property without inspection, they’re not only paying a premium for the property, but they also subject themselves to handle all the costly repairs on top of the expenses. Don’t allow yourself to take an additional risk by forfeiting the inspection.
Scoring a deal in the housing market should never compel you to do drastic and ill-advised measures. Doing so can put you in even bigger consequences that can cost a lot of money in the long run. In the end, nothing feels better about having peace of mind that the house you just bought is free from unexpected issues.