Skipping Inspection: What Does that Mean?

You remember, well some of you remember, the Cabbage Patch Doll riots of 1983 or the Beanie Baby Bubble of the 90s? Two trends in America that caused moms to buy on the black market and dads to pick up baseball bats. This is the current state of Real Estate. If I had a dollar for everyone asking me “how’s the housing market now”, I could buy my own home. It’s hot people, real hot and will continue to scorch RVA for a while. That being said, having your realtor help you strategize and negotiate a deal is wise, it is what we get paid to do — protect your best interest and your investment.

My deals used to be pretty straight forward, a $10K jump maybe to be competitive, but nothing out of the ordinary. Now, I’m struggling to keep buyers in the game because losing a bid on a house you really want, is a “your dog is dead” moment. Many homes I’m seeing in the $185-250 range are going “as is” and investors are like Hungry Hippos gobbling up all properties deemed destined for flips. Which brings us to our main subject — home inspections.

When I tell my first time homebuyers that waiving inspection will help get them the house, they look at me with a look like Bambi in the woods. First and foremost, I would NEVER advise a client to not get a home inspection. It is just ill advice; however, I will say waiving it on the contract makes the offer more appealing. Waiving the inspection contingency doesn't prevent you from having a home inspection. It just means you won't be able to use results from an inspection to negotiate remedies or price with the Seller.

You are competing with big city transplants, cash only offers, and 30+ asking prices—I know, I feel defeated losing a bid too, let alone several. What it does say is, “Hey, I really want this house, look at what I’ll do for you to get it.” It is a risky move, yes, but it is not the worse move because if you have a good agent, they will know how to negotiate the terms of a no inspection contingency. We won’t ask the seller for any repairs, but we will do an inspection for informational purposes. In addition, making sure to put language in your contract that says if any “big ticket” items come up, you can negotiate. Big ticket items are things that are expensive to fix or replace (i.e., foundation, roof and heating, ventilation and air conditioning (HVAC), and mold remediation).

Our home buying process has become a thruple of a relationship these days. I am now advising my clients to bring a contractor with them on showings or if you really want to get ahead, bring your inspector, they can do a once over to see if there will be any potential problems ahead before you put an offer down. My guy charges $150 for a pre-inspection. People ask me if they should do this with new builds because they come with their own inspections. I say, yes, absolutely because you don’t know everyone’s abilities working on the house, sometimes mistakes are made, as this story shows:

“About six months later, they had problems because the ceiling fan in the bathroom was venting into the attic,” he recalls. “So moisture from the shower was going up into the attic space, and he ended up with a mold problem and some sagging. Sheetrock had to be torn out in the bathroom, and they had to do it properly.” - Jase Norsworthy, Real Estate Agent

So, should you waive inspection? If you want to be competitive in this market, yes, but DO HAVE AN INSPECTION. Make sure you have a clause in your contract to allow you to walk out if there are major expensive repairs to be done and the seller refuses to negotiate. Don’t trust what you see on the surface, you don’t know what’s behind the walls. All this just tells the seller you aren’t interested in nitpicking inspections items, but you are going to walk away from a potentially cost heavy problem. Aren’t we so nice? Strategize and materialize, that’s the name of the game. I always tell my clients to not get defeated if they are losing bids, it’s happening everywhere, but know that you will eventually get the home you were meant to have. Good luck and happy hunting!