An unprecedented Seller’s Market is creating vicious bidding wars on the North Shore
It is a well-known fact that Buyers are routinely waiving contingencies in an anguished attempt to procure an accepted offer. With apologies to Edvard Munch, it is enough to make an eager buyer SCREAM!
Waiving your right to a home inspection is a big risk, especially if you’re buying an older home or foreclosure or any property you plan to flip or rent out to others. Without an inspection, it’s impossible to know what problems lie within a home — or, more importantly, how much time and money those problems will take to fix.
When you don’t have that information, there’s no way to know you’re making a smart deal. What if you find wiring issues when tearing out the walls? What if your future renter finds black mold? Will you be liable for their medical bills? You’re taking a huge risk when you can’t fully assess a property before buying it.
If you’re considering waiving this contingency, you’ll want to think about:
- The home itself: How old is it? Who were the previous owners? How well-kept does it look, both inside and out?
- Your budget: Do you have the resources to address a big issue if it crops up?
- Your team: How confident are you in your contractors if something serious arises? Do you also have a good attorney on your side in case there are legal issues?
Before you opt to waive your inspection contingency we always advise that you bring in your most trusted contractor or knowledgeable advisor to view the home with you. Do they see any glaring issues? Any signs that indicate a deeper problem may be present? Don’t be afraid to walk the property several times to be sure. Additionally, always use an experienced professional Realtor that will be able to point out potential pitfalls.
Look very closely at the seller’s disclosures you receive. If there has been a lot of work done on the home, it may be a red flag that bigger issues exist on the property. Ask your Realtor to search the public record and procure the deed of the property in order to report any potential concerns before making your offer.