The average home stays on the market between 65 and 93 days. That means most homes sell in under three months!
For buyers, making sure they’re able to buy homes quickly can be tough, especially when they’re competing against other buyers for the same house. This leaves many people wondering if they should waive the home inspection contingency when making an offer.
If you’re wondering what happens when you say that your offer on a home requires no home inspection contingency, you’re not alone. Here’s what you can expect if you decide to waive your pre-sale inspection.
When You Waive, You’ll Pay for Repairs
The main purpose of a home inspection is to find out the true condition of the house you’re interested in. Remember, just because a house looks great both inside and out doesn’t mean there aren’t hidden repair issues that can cost you hundreds of dollars.
When you leave the home inspection contingency in place, you can negotiate the cost of those repairs with the seller. You’re free to ask them to fix those issues before closing or ask for credit to take care of the repairs yourself.
However, if you waive the home inspection contingency, you agree to bear the full cost of those repairs on your own. The seller won’t have to lower their asking price or get repairs taken care of before you move in.
Ultimately, it can end up costing you thousands of dollars out-of-pocket that you could otherwise spend furnishing and decorating your new home.
You’ll Need to Find a Different Way to Negotiate
One of the biggest problems with what happens when you waive home inspection contingencies is that you’re no longer able to use the inspection to negotiate. You’ll be unable to use the issues and repairs to lower the purchase price of the house.
This means you’ll need to figure out other ways to negotiate the price with the seller.
If you’re the average homebuyer, this may not be easy. You’ll want to leverage your real estate agent’s expertise to find different ways to lower the asking price. Further, you won’t have an easy out of the contract if you and the seller can’t come to an agreement.
With the inspection contingency in place, you’re ultimately protecting your budget.
You Can’t Terminate the Contract Based on Damage
Deciding that no home inspection contingency is necessary for your property means you won’t be able to terminate your contract if the house has serious damage. Think of it this way: when you buy a house, you may not immediately notice issues and damage.
However, when you tour the property again, you may start to see signs of significant wear and tear. Those issues could cost you more money than you’re willing to spend, even if you love the house.
With the inspection contingency in place, you’re able to terminate the contract based on the discovery of that damage. When you waive it, you’re stuck with the terms you agreed to in the purchase agreement.
You Risk Unwelcome Surprises
The biggest benefit of an inspection is that it helps you identify potential problems with the home before you commit to the purchase. This makes it easy to avoid unwelcome surprises and overly high repair bills in the future.
If you waive the contingency, you must be willing to accept the risk of those future repairs and surprise issues.
As a homebuyer, you need to make sure you’re investing your money in a property that will grow in value. If there’s significant damage to the home, the value may continue to depreciate over time.
You May Make Your Offer More Competitive
Inspection contingencies are a great way to protect buyers from overpaying for a house. However, they’re not ideal for sellers.
Sellers want to make as much money off their homes as possible. This means they’re not going to want to spend money on repairs or reduce the asking price to help you pay for the repairs yourself.
When there are more buyers looking to buy a house than there are homes for sale, sellers can be picky. They’re able to wait to see which buyers will make the simplest offer possible.
If you’re making an offer with an inspection contingency and someone else offers the same price without the contingency, the seller will likely choose their offer. When you’re competing against other buyers for the same property, waiving the inspection contingency is a great way to stand out from others.
You Can and Should Get an Inspection Anyway
Ultimately, you should always get an inspection, even if you decide to waive the contingency when you make an offer. During the inspection, you’ll learn about the possible hidden problems and repairs that can cause major trouble down the line.
This helps you prepare your home maintenance budget once you close on the property, even if you won’t be able to negotiate with the seller.
That said, if you decide to waive the contingency, you’re free to schedule the inspection whenever you feel like. If you prefer to wait until you close on the property, you’re free to.
Should You Ever Say No Home Inspection Contingency Is Necessary?
There may be times when saying that your contract requires no home inspection contingency is in your best interest. However, those times are few and far between. It’s always best to get the house inspected before you buy it so you can make the best financial decision for your family.
If you do decide to waive the inspection contingency, make sure to schedule a home inspection after you buy the property. During that inspection, your home inspector will give you detailed information regarding every potential problem with the house.
The more you know and understand about your home, the easier it is to make sure you stay within your budget. If you’re ready to schedule an inspection for a property you’re interested in, contact us today.