In most cases when real estate changes hands, a property inspection will be carried out. For residential properties, a home inspector will be hired to go through and make sure that everything is up to code and that there aren’t any serious issues with the property – such as cracks in the foundation, leaks in the roof or the presence of hazardous materials like asbestos or lead paint.
But a home inspection isn’t a required part of a real estate transaction, in the sense that you can waive it and still proceed with that transaction. There’s certainly a major risk to doing so. If an inspection isn’t carried out, you may find unexpected issues with the house after you’ve already purchased it. This can be very costly since you have to make the repairs. So why would you ever decide to do this?
Getting ahead of the competition
The main reason that people do this is just that the market is very competitive. If they know there are a lot of other offers on the house, they may decide not to carry out the home inspection just to make their offer more attractive to the seller.
After all, even when the seller believes the house is in good condition, a home inspection opens the door to potential complications. The deal could fall through if the inspector doesn’t approve of the home or the potential buyer may ask for repairs to be made. As a result, sellers will sometimes prefer offers that don’t include a home inspection contingency, knowing that it’s more likely that the transfer will take place without issue.
As you can see, there are both pros and cons to waiving a home inspection. It’s important to understand all of your legal options through every step in the home buying process.