What Waiving A Home Inspection Could Cost You.
Updated: May 30
Homebuyers usually make a purchase offer that is contingent on a good home inspection. These inspections aren't required for a mortgage loan, but they're highly recommended because they reveal information about a home's condition. On the surface, a home may appear attractive, but it may require extensive and costly repairs on the inside.
A home inspection is a non-intrusive procedure. As a result, the walls are not opened by a home inspector. They will, however, look over the house's electrical, plumbing, and HVAC systems, as well as the roof, foundation, attic, and other structures, to look for any potential problems.
These inspections also involve a thorough examination of the home's appliances (stove, washer/dryer, refrigerator, and water heater) to ensure that they are in good working conditions.
The Risks Involved And Potential Costs Of Waiving A Home Inspection
If you're trying to buy a house in a competitive market and your offers are getting rejected, you might feel compelled to take drastic actions. Some buyers would agree to waive inspections in exchange for more than the asking price or a rapid closure. However, it is a bad idea to do something like this. The property may appear to be in good condition to the Buyer, but what is beneath the surface, or stuff that you can't identify as bad, is what causes the most problems.
A normal buyer, for example, will not be able to detect asbestos, nor would they notice symptoms of termite infestation or a leak in the HVAC system.
You don't want to buy a home without having it thoroughly inspected, no matter how desperately you want it or how emotionally committed you are to it. Consider six months from now, when you've completed the sale and moved into your new house. When you go to turn on the heater, and it discovers it doesn't work, you'll kick yourself when you realize fixing it could cost you several thousands of dollars!
You might not be able to see or think properly when you're in the middle of a bidding war or in your seventh month of house hunting. Don't be swept up in the hullabaloo. You can lose a lot of money if you skip an examination. You can choose to hire a qualified home inspector to help you carry out the inspection (this is the standard since you can hardly identify key issues yourself).
A certified home inspector can help you spot potential issues with your new house. Your inspector may find evidence of water damage or mold, for example. A professional home inspection may reveal that your new house's roof may need to be replaced in a few years. Alternatively, your water heater or air conditioner may need to be replaced.
These kinds of discoveries aren't uncommon. If these issues, or worse, are discovered during your home inspection, the typical inspection contingency allows you to bargain with the Seller.
When both sides desire to make a deal, these types of problems are usually resolved by the Seller agreeing to make repairs or crediting the Buyer with a price reduction. If you can't reach an agreement, the inspection contingency permits you to keep your deposit if you can't reach an agreement.
You incur full financial liability for whatever condition the property is in and whatever repairs are required — if you waive your inspection contingency. Sometimes the solution is straightforward and affordable. However, if your difficulties are severe, what you don't know could add thousands, if not tens of thousands, to the total cost of purchasing that house.
Skipping a home inspection is a risk that could cost you more than you can imagine in the long run. To be on the safer side, it is advisable to spend a few hundred dollars in hiring a home inspector than have to spend thousands of dollars when you move in. Think about the frustration as well. I'm sure you don't want to go through that!