Waiving Inspections in a Seller's Market

Waiving Inspections in a Seller's Market

In a balanced market—where buyer demand is in sync with the availability of homes for sale—it would be unusual to see home buyers waiving inspections. But this year has been anything but usual. With COVID-19 as the backdrop, the paucity of homes for sale, coupled with strong buyer demand, has caused some buyers to forgo inspections. This has been most likely to happen when multiple bids were received or expected.

When a seller receives several bids with the same offer price, but one buyer agrees to waive inspections, the seller is likely to choose the bid without inspections. In doing so, they avoid the cost of fixing any problems an inspector may identify and avoid the potential for the sale to fall through because of disagreements about repairs.

Common Inspections

The most common inspections in our area the home inspection, radon test, and wood infestation inspection. For homes with wells and on-site septic systems, buyers typically also do water, well, and septic inspections. Other possible inspections are lead-paint, stucco, mold, and pool inspections.

What to Consider Before Waiving Inspections

Waiving some or all inspections may be tempting, especially if you’ve made offers on several homes and lost out to other buyers. Before taking this route, consider whether forgoing inspections to make your offer stronger is worth bearing the risk of discovering costly problems after you move in. Will you have the cash to make repairs if problems turn up after closing?

Ask yourself whether you like the home enough to take this risk. Is it likely that another home will come onto the market soon that you would also be happy to own? Is it important for you to move now, or can you wait for another home to become available? Although some buyers may decide that waiving inspections makes sense for them, it may not be the best choice for everyone.

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If you’re planning to buy or sell a home, contact Annette Nelson at (610) 247-7892 or annette@preferredhomes.com

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