Even in a Seller’s Market, Waiving Inspection Won’t Pay Off
In a seller’s market like the one we’re experiencing right now in Colorado, it’s extremely tempting for buyers to pull out all the stops in order to win a bid for their dream home. Many hopeful homebuyers at all budget levels are making three or more offers before eventually going under contract for a new home, and the process can be understandably exhausting.
While there are a few key strategies I like to guide buyers through in order to help our offer stand out from the rest, I’ve heard a concerning suggestion lately that buyers should waive inspection entirely in order to win in the bid for a new home. Even in this seller’s market, it’s never a good idea to completely forego inspection. Here’s what makes inspection so crucial.
Health and Safety
My recommendation to buyers who are looking to be competitive in their offers while still protecting themselves is to add an inspection clause in their offer informing the seller that they’ll only object to inspection items that impact health and safety. Waiving inspection means you won’t have the opportunity to learn about aspects like radon in the home before you purchase it. Other items like loose railings or stairs, damage to the sewer line, foundational issues, or faulty heating systems need to be brought to light so that you can plan to address them before moving in, not after they’ve already put you in a situation of risk.
Costly Repairs
No matter how frustrating it may feel to keep searching for a home in a market that favors sellers so strongly, settling into a “we’ll take what we can get” mindset often ends up being a costly mistake. A home inspection will tell you if there are large repairs needed for the home you’re making an offer on. Common repairs that can make a large dent in a home budget include roofs in need of replacement and sewer lines with damage from tree roots. Before diving in headfirst with the purchase of a home, it’s critical to know what the financial reality will be, even if you don’t plan to object to anything you find in your inspection.
Knowledge Is Power
Overall, having a firm grasp on the true, full picture of the home you’re looking to purchase puts you in a position to make informed decisions. In many cases, inspection objections give buyers renewed negotiation power and can help bring the contract to closing on more even ground. At the very least, getting an inspection for the home you’re interested in purchasing will put you in the driver’s seat to decide what you’re truly willing to live with or fix, and help you budget for the reality of homeownership.
Although waiving inspection isn’t one of them, there are plenty of strategies we can rely on in order to make a competitive offer in today’s seller’s market. I’d love to help you make a strong offer for your Colorado dream home! Please Contact me for any questions.
