Should I waive a home inspection?
Waiving a home inspection favors a Seller more than a Buyer. If you don’t get a home inspection on what may be the single largest investment of your lifetime, you may be taking a bigger risk than you realize. If you skip your right to an inspection as a Michigan home buyer, you remove your protection and become more likely to encounter unforeseen and unexpected issues, some of which can be very costly!
Some of a homes flaws and defects often cannot be seen with the naked eye. Think about the last time the home’s sewer was ever inspected? It often has been decades. Other unseen issues as an example are items like HVAC units, incorrectly wired stoves, bad wiring, unsafe structural issues, animals nesting in the attic, to name a few.
Waiving the inspection contingency does not prevent you from conducting a home inspection for your own peace of mind; but you won’t be able to negotiate with the seller based on the results of any “personal” inspection you order.
What is an inspection contingency?
When a home inspection contingency is included in an offer contract, you can change or end the offer contract without incurring any penalties if any issues are discovered by the inspector. A home inspection is when the buyer hires a licensed home inspector to create a report on the condition of a home.
By including a home inspection contingency in your contract, you can negotiate the costs of any repairs that may be needed. The contingency will give you a chance to withdraw your offer without losing your earnest money deposit. If your inspection finds no serious issues, you have the peace of mind to move forward with purchasing your new home!
Waiving a home inspection contingency
The reason people get a home inspection is that it it provides a home buyer with an added layer of protection. In the distorted pandemic markets, buyers experienced just how unattractive making contingencies on sellers was; with sellers wanting home inspections waived. The reason sellers would want a home inspection waived is so they don’t have to take care of costs for large repairs discovered or fear of losing out on attractive offers because they know there are issues.
Including an inspection contingency is really recommended and at the very least, inspecting on a contingency that seller is not responsible for repairs you may find, while still allowing you to back out of the offer should something be found.
According to the December 2021 Realtors Confidence Index Survey, 19% of buyers waived the inspection contract contingency, which was down from a peak of 27% in July 2021. Buyers felt incredible pressure to try to make their offers stand out among the feverish crowds of buyers all vying for the limited inventory that was available. The good news? Buyers have regained more bargaining power with the increase in inventory and according to Zillows 2022 Consumer Housing Trends Report, only 14% of home buyers have waived a home inspection this year. The sellers no longer hold all the cards.
Bottom line: Unless your financial resources are large enough to cover the costly issues, or you know you’re getting a fixer-upper and planning on repairs, waiving a home inspection is just too risky. If you’ve already skipped the inspection and closed on your new home in Michigan, Top Floor Home Inspections can do a post-sale inspection for added peace of mind.