Today's housing market is ultra-competitive! As a result, buyers have had to find new ways to get their offers noticed by sellers receiving multiple over-asking price bids. One commonly used tactic is waving the home inspection as a condition of the sale, which most real estate professionals would warn against.
Ok I'll be straight with you - skipping the home inspection is just plain dangerous and here are the reasons why.
Unknown Maintenance Issues & Safety Risks
For homebuyers uncomfortable dealing with major maintenance issues, waiving a home inspection also means committing to purchasing a home with unknowns that may be deal-breakers.
Many of us couldn't imaging purchasing a car without understanding the maintenance history and or running a Carfax report, yet many buyers are willing to make the largest purchase of their lives without understanding the physical condition of the home.
A home inspection reveals critical information about the condition of the home including, maintenance issues, infestations (termites for example), and potential safety hazards such as mold, radon, or carbon monoxide. If you aren't comfortable with the findings of the home inspection, it presents an opportunity to legally cancel the offer.
No Maintenance Plan For the Home
Even if you are willing to move forward with a home that has maintenance issues, it is still wise to plan. Home inspectors are a resource to help educate the new homeowner of current and future maintenance needs. Knowing the issues that need immediate attention or what big job may be coming up in the next 5 to 10 years will help you plan financially and avoid being unprepared for things like roof failure or furnace replacement.
The home inspection also provides valuable tips on how to maintain the home which may ultimately save you thousands of dollars in the long term.
Protection Against Unexpected Expenses
Some insurance companies will not insure a home if certain conditions are found. Additionally, home inspectors are trained to look for issues that have the potential to create a drain on your finances.
A home inspector will reveal issues that exist with the home which protects you from buying a home that may require more than you are willing to handle. Furthermore, licensed and insured inspectors value their reputation and have an incentive to conduct a proper and thorough review of the home. I know a buyer who discovered a major deficiency in the living room window of his new home post-closing. Turns out, the inspector overlooked significant rotting around the window frame during the home inspection. After talking to contractors, the owner learned that repair would cost up to $4,000 - a major financial setback so soon after moving in. The owner went back to the home inspector who took full responsibility for the oversight and covered the loss through their insurance company.
Before hiring a home inspector, ask if they have coverage for errors and omissions in the event of an oversight.
Home Inspection a Non-Starter? What You Can Do Instead.
If you must negotiate away a home inspection contingency to win the deal here are some ways to mitigate your risks:
Ask to see any recent inspections done on the property. “The only time a buyer I represent would consider foregoing a property inspection (which I do not recommend) would be if a seller has done their own contractor and pest inspections with contractors I know who are reputable,” says Solfanelli. “As long as inspections have been performed which highlight the risks, the buyer has at least been informed.”
Schedule a walk-through. “Many home inspectors are willing to charge a flat rate for these walk-through consultations, also called walk-n-talks,” explains Saltzman. “These consultations are done during showings, where the home inspector shares their professional observations with the potential home buyer.” He warns, however, that walk-throughs are not home inspections and will not reveal defects that a full inspection would. “We don’t use any tools other than a flashlight, and our time in the home is very limited,” Saltzman says.
Have a savvy friend take a look. If you have a friend or relative who is knowledgeable about construction, ask them to give the house a once-over. Keep in mind, however, that as much as a person may “study up” to spot red flags, nothing can match the experience of a licensed home inspector. “You may have a handy uncle or aunt who really knows their stuff,” Kraeutler says. “But it takes years and hundreds of home inspections to be able to notice problems an experienced inspector routinely finds.”
You Bought the Home Without a Home Inspection. Now What?
Even if you closed on the house without ordering a home inspection it doesn't mean it's too late to have it inspected. It's still wise to have the home inspected after you close. Now that you own the place, it is important to understand what issues if any, exist and how you should prepare for them financially.
Bottom Line
It is your responsibility to understand as many details as you can about the property you may soon call home. Home inspections reveal the inner workings of the property allowing you to be informed of all the perks and pitfalls the home has to offer.
Sources:
https://www.investopedia.com/financial-edge/0511/10-reasons-you-shouldnt-skip-a-home-inspection.aspx
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