Don’t waive your home inspection before considering these risks
There’s a reason why many homeowners could relate to (and have nightmares about) the 1986 hit movie “The Money Pit.” Not only could people relate to the seemingly endless problems—like poorly hung doors that tumbled off their hinges—but it was also easy to imagine a nightmare scenario where you purchase a home without knowing its issues.
That’s why home inspections are a crucial part of the home buying and selling process. However, when the real estate market is red-hot with bidding wars, some homeowners may consider skipping the home inspection to snap up their dream home. Consider the following risks before waiving the home inspection on your potential new home.
A third party inspector completes the home inspection, and the homeowner pays for it. These inspectors usually inspect the property after the buyer makes an offer, and they’ll inspect every inch of the interiors and exteriors. Then, they’ll document their findings in a report.
Once all parties review the home inspection report, the buyer can decide whether the issues are worth amending the offer or if they’re willing to move forward with the sale. For example, suppose the inspection turns up a major leak in the roof. In that case, you may send a counter offer to the homeowner asking them to repair it prior to closing.
Over the past few years, the inventory of homes has shrunk while the demand continues to increase. That means there are a lot of hopeful homeowners competing for the same limited amount of houses.
In order to close on a house quickly, some buyers may make out-of-the-ordinary offers, such as all-cash offers or volunteer to close without a home inspection. While this benefits home sellers, it leaves home buyers vulnerable to purchasing a home with unknown issues, as well as the following risks.
The home inspection requires the home inspector to search the home from top to bottom, looking for signs of wear or more serious issues. While inspections don’t uncover everything, they make it more likely that you’ll be aware of potentially expensive and dangerous problems.
Without a home inspection, you risk buying a home with the following major issues:
Leaky pipes
Outdated circuit breakers
Structural issues
Rundown roofing
Drainage issues
Hidden mold
Failed HVAC systems
Without a home inspection, you likely won’t discover these significant problems until after closing day. Then, you’re responsible for paying for those repairs, which can cost several thousands of dollars.
Homes can be expensive, so you want to ensure you’re getting the best deal possible. A home inspection can help you get your money’s worth when you buy (and sometimes even help you score a deal).
A detailed inspection report that notates some potential problem areas with the home can help you negotiate a lower price on your property. If you choose to skip the home inspection, then you cannot use the cost of any necessary repairs as a bargaining chip during negotiations.
There are plenty of perks when it comes to homeownership—tax write-offs and equity among them. But there’s a reason why people often say, “Oh the joys of being a homeowner” whenever something goes wrong. While it’s possible to miss major issues without a home inspection, it’s also likely that you’ll miss minor but costly problems, too.
If you skip the home inspection, you should build up an emergency fund to cover any potential surprises down the line. Some potential issues include:
Gutters that don’t face away from the house
Water damage in the walls or ceiling
Leaking pipes around the kitchen and bathroom sink
Windows and doors that don’t close
Appliances that don’t work
Surprises are part of being a homeowner, but you can avoid many of them by trusting the expert opinion of a home inspector before purchasing a home. A professional home inspector will not only point out current issues with the home, but they may be able to detect problems before they even start. Home inspectors may also help you create an ongoing maintenance plan to prevent even more trouble down the line. However, you’ll miss out on these expert insights if you waive away the home inspection.
In “The Money Pit,” Tom Hanks’ character probably wished he could tell himself to walk away from the fraught deal. A home inspection is the real-life “get out of the sale” pass because the home purchase is contingent on the inspection results.
If the home inspection report includes more issues with the home than you’re willing to deal with, you can back out of the sale. But once you waive the home inspection contingency, you miss one of the few opportunities to walk away from the deal.
