When buying a home in a competitive market as we are currently experiencing here in West Texas, it’s tempting to make some risky decisions to make your offer seem like the best one. This could mean offering more than the asking price or a agreeing to a quick closing which aren't so bad. Insome cases, waiving the much needed inspections. This is a VERY BAD IDEA! Although waiving inspections might seem like a good idea when your offer keeps getting beat out, it’s not. Here's why:
While the house may look good to the eye, there are many problems the average buyer can’t detect that can cost you a lot of money down the line. More than once, I've had sellers and BUYERS tell me that they don't expect I'll find much in the way of defects during their home inspection. 100% of the time, those sellers and BUYERS are wrong! For example, beyond the surface there may be problems like termites, malfunctioning systems, or improperly installed electrical that is potentially hazardous! No matter how much you want the house, do not make an offer without having it thoroughly inspected. Here are some solutions to satisfy your need to inspect while remaining timely and competitive.
Pre listing or pre sale Inspection
If you really love this house, have it inspected before you make an offer or sign a contract. Although you might end up spending a few hundred dollars on a house you don’t end up purchasing, it’s better to be safe than sorry. If the house ends up passing inspection, now you can waive your inspection contingency.
A seller will often have his or her property inspected before putting it up for sale, called a pre
listing inspection. This way the seller can fix any issues before listing, or tell buyers upfront what they are getting. This protects the seller from future negotiations as well as allows proper pricing of the home. The only issue with this is that the inspector is liable to the seller only, the person who ordered and paid for the inspection.
Quick Inspection Contingency
Sellers like to keep the process moving, so there is usually a small window of time between when offers are due and a deal starts to move forward. When you need to get your offer in quickly and there’s no time to inspect, write a one- or two-day inspection contingency into your offer. This gives the seller comfort knowing the sale won’t lose momentum, and you’ll have peace of mind, too. If you are working with a good local agent, he or she should probably already works with me! I can usually fit in urgent inspections to help you meet your deadlines!
If you feel yourself getting caught up in the bidding war, keep in mind the bigger picture. You are purchasing a large asset, and you do not want to find yourself in debt due to a pricey problem you missed by waiving the inspection.