Should you waive the home inspection?
In the current competitive real estate market, buyers are doing everything they can to make the very best offer possible so theirs is the one selected by the seller. One tactic some buyers are taking is to waive the home inspection. This week, we'll dive into the risks and benefits. Waiving the home inspection will be attractive to sellers since it will be less worry for them and decreases the chance that you will negotiate after the initial offer is accepted. As a buyer, this tactic will cost you the opportunity to uncover potentially pricey problems before the home is officially yours. You may think the home is in excellent shape, but some of the most expensive problems that an average person would not notice during a showing, such as foundation issues, outdated or faulty wiring, and leaks, are uncovered during a home inspection. I would only recommend waiving a home inspection if you are planning to completely gut and renovate the property. For the average home buyer, that doesn't apply. There are plenty of ways to make a strong offer without waiving a home inspection.
Be fully preapproved. Having a mortgage preapproval from your lender shows seller that you are serious and have the financing in place to close the deal.
Make your very best offer. Don't make a low offer in hopes that the seller will make a counteroffer. When a seller has multiple offers, the low offers may not even be considered. Determine what you are willing to pay and offer that price up front.
Put down a larger earnest money deposit. Sellers will feel your commitment to the purchase when you put down more earnest money.
Add an escalation clause. This is an attractive clause because it eliminates the need for back-and-forth negotiation between competing buyers. An example of this is that you are willing to automatically bid a certain amount over an other offer up to a certain amount.
Offer to close quickly. For some sellers, closing quickly can be more important than an offer for money money. If you're able to close in under 30 days, include that in your offer.
Accept the home as-is. This means that the inspection will be for your information only and you will not ask the seller to make any repairs that the home inspection uncovers or reduce the price of the home based on needed repairs.
You can count on your Realtor to help you make the best offer possible that works for you and still protects your interests.