A popular trend in today’s competitive real estate market is waiving home inspections to make an offer more competitive. The home inspection contingency gives the buyer the right to have the home inspected in a time period leading up to settlement. This allows for the buyer to negotiate repairs on the home and, in some cases, to back out of the contract after understanding the full scope of the purchase. By waiving the contingency, buyers are waiving their right to negotiate, but still are required to have inspector review the property through what’s known as a Walk & Talk.
What Happens If You Waive a Home Inspection Contingency?
Waiving the inspection contingency does not prevent you from having a home inspection on the home. It just simply means that you won’t be able to use the results of the report to negotiate with the seller, however, you still reserve the right to walk away from the property. If you waive the contingency you can choose to have a Walk & Talk before settlement, or just after purchasing the home for informational purposes.
Why Is It a Bad Idea To Pass On a Home Inspection?
Home inspections help protect sellers and buyers alike. When something goes wrong after the buyer moves in, they’re often angry and looking for someone to blame. Because of this, realtors and sellers are at a heightened risk of facing lawsuits. Not having an inspection on a home means buyers are relying on realtors to be the expert on the property and assume that the sellers are not hiding any serious issues regarding the property.
Do Sellers Have To Disclose Issues With a Home?
In most states, including Maryland, Pennsylvania, and New Jersey, sellers have a legal obligation to buyers to disclose information about a property’s known defects. One of the most common lawsuits involved in a real estate transaction involves the failure to disclose a defect. When a home inspection is completed on the property, the liability on a seller and their realtor drastically shrinks, as the inspector becomes the expert on the property. If the home is purchased without a home inspection and defects are not disclosed by the seller, buyers can file a claim to receive compensation for the costs associated with the defect.
What If The Home Is Being Sold “As Is”?
In a seller’s market it’s not uncommon for sellers to sell their homes “as is.” This means that the buyer is purchasing the home in its current condition without the option of requesting repairs from the sellers. While this can reduce the possibility of a lawsuit, it doesn’t remove all liability from the seller. If you are a seller listing your home as in, in order to avoid potential lawsuits, consider a pre-listing inspection to offer transparency of the home’s condition upfront. It will help bring in non-contingent offers and buyers will know exactly what’s wrong with the home and submit an offer based on the report.
What If I Don’t Have Enough Time For a Home Inspection?
If you’re limited on the time you can access the property for, you can always choose to have a Walk & Talk Evaluation performed on the home. A Walk & Talk is not an inspection due to the fact that it does not allow an inspector to produce a report, however it allows the inspector to look at the major systems of the home and can save home buyers thousands of dollars later down the road. If the sellers won’t allow an inspection, it can sometimes indicate that there are major issues with the home. Walk & Talks can help clients make informed decisions when an inspection is not an option. It’s always a good idea to have a full home inspection even after you move into a property to create a checklist of things that may need to be fixed or replaced in upcoming months and years.
What Happens If You Choose To Not Have a Home Inspection At All?
Choosing to not perform an inspection on a property poses many threats to you and your investment. A quality home inspection can reveal critical information about the condition of the property and its systems and helps make the home buyer aware of current and potential issues. A home inspection can also identify health hazards like high radon levels, carbon monoxide, and mold. Additionally, inspections can offer insight into future spending for repairs of major systems like plumbing, heating, cooling, roofs, and water heaters. All components of a home have a shelf life and it’s important to understand when they will need to be replaced or repaired.
A home inspection should play an important role in the home buying process, however it is not always an option at the point of purchase. Once the property is purchased, it is important to have an understanding of the condition of your property. At ProTec Inspection Services, we believe that purchasing a home is one of the biggest financial investments most people ever make in a lifetime. With tried-and-true specialty and home inspection services, ProTec will help ensure that clients are making well-informed decisions by identifying any major defects or items that may need to be addressed. Call us today to schedule your inspection or Walk & Talk Evaluation.