Is waiving home inspection a good idea?

The current housing market is a competitive one. Due to a discrepancy between the housing supply and demand, most of the buyers are in a bidding war, vying for the most desirable properties. Some even try to make their offer more appealing by waiving home inspection. 

If you too are tempted by this idea, read on. Understand how waiving home inspection may not be a smart thing to do. The last thing you want is to find structural problems with the house after closing the deal. 

Conducting a thorough inspection of the house you’re about to buy is important. It provides valuable insights into the property’s condition. In fact, it aids you in negotiating the home price. The results of a home inspection can be both an early warning about an existing problem and a valuable tool to negotiate with the seller. 

What is the risk of waiving a home inspection?

A home inspection, without a doubt, is an essential step in the homebuying process. Once a buyer’s offer is accepted, they hire a licensed professional aka home inspector to examine the electrical wiring, assess the plumbing, inspect the attic, and evaluate the functionality of the heating and air conditioning systems.

Generally, in a buyer’s market, buyers leverage the results of an inspection as a negotiation tool. Or, they get an opportunity to request the seller to pay for the repair. 

Keep in mind that buying a home is a huge deal – both financially and emotionally. A home inspection will help protect your financial investment. 

If you skip the home inspection, how will you uncover any problems with the house? Suppose you find later that the popcorn ceiling has asbestos, there’s a mold infestation in the basement, a lot of water damage, or there are worrying cracks in the foundation of the house. Or worse, there’s a safety hazard that has gone undetected! Without an inspection, you risk serious issues that could cost you a lot of money and stress in the future.

What is the smart way to go about home inspections?

You can include an inspection contingency in your real estate agreement as protection. It gives you a legal right to have a home inspection but still the option to negotiate or back out of the deal based on the inspection results. 

This contingency allows the buyer to hire a professional home inspector to thoroughly examine the property and provide a detailed report on its condition. 

If the inspection reveals any significant issues or deficiencies that were not previously disclosed, the buyer can use the inspection contingency as a means to negotiate repairs, credits, or a lower home purchase price with the seller. In some cases, the buyer may even choose to walk away from the deal entirely if the inspection reveals problems that make the property unsuitable or excessively costly to fix. 

Or, if you’re really desperate, you could consider waiving the home inspection contingency but do not ever forgo an inspection. 

Home inspection vs. home appraisal: What’s the difference?

A home inspection and an appraisal serve different purposes in the process of buying or selling a property. A home inspection is a detailed examination of a home’s condition, typically conducted by a home inspector. It identifies any existing or potential issues with the property. 

On the other hand, a home appraisal is an evaluation of the property’s market value, conducted by a certified home appraiser. It’s based on various factors, including the condition, location, size, recent sales of comparable homes in the area, and current market trends. The appraisal is typically ordered by the lender to ensure that the loan amount aligns with the property’s value.

What if you want to beat the competition by waiving inspections?

A smart buyer (and their smarter real estate agent) will always find the right language to make their offer stand out in today’s competitive housing market. Instead of skipping inspections entirely, you can agree to ignore minor issues or any single repair valued at less than $500 in the offer. Or, state that unless there’s a major issue with the house, you’ll go ahead with the deal. 

If you choose to forgo the inspection contingency, it is advisable to retain the option to perform an inspection for information only. Moreover, even if you have agreed that your offer is not dependent on an inspection, a significant flaw in the property could release you from your obligations. 

What more can you do as a buyer?

We understand that it’s important to make an offer that makes it easier to get you your dream home – especially in a seller’s market. 

Here are some tips that can help you secure a property quickly and smoothly.

• You could obtain mortgage approval, involving a credit score check, before beginning your home search. Having a preapproval letter increases the likelihood of the acceptance of your offer.
• Be ready to visit properties physically or remotely as soon as they become available on the real estate market. Avoid getting caught up in minor repairs or insignificant details.
• Offer to give a higher down payment or an earnest money deposit. 

Read more: Red flags in a home inspection

Last thought

The process of a home inspection is for the buyer’s protection – alerting them of minor to major problems. Never skip an inspection lest those problems become your problems!

If you claim, “I bought a house without an inspection”, the mistake will be yours to regret. 

If it’s absolutely necessary, you could waive the contingency but not the inspection. That is to say, you will want all the information about a house through an inspection. But, you won’t hold the home seller responsible for making or paying for repairs. This step will make your offer a good one while still giving you the house details.

Read more: Pre sale home inspection checklist

Written by Ramona Sinha. June 28, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.