Risks of Skipping a Home Inspection

Home buyers are choosing to skip home inspections in order to secure their dream homes before other offers.

Insiders in real estate acknowledge the “new normal” created by the competitive market. Carol Solfanelli, a Compass broker and attorney, sees it in San Francisco where she works. She says that 99 percent of buyers will lose if they have an inspection condition in multiple offers.

You may feel tempted to skip a home inspection in order to close on the house you love, but you will be difficult-pressed to find an expert who would agree.

“People are literally negotiating away any home inspection contingencies on their street,” says Tom Kraeutler (The Money Pit podcast host, 20-year veteran in the home inspection industry). But buyers are playing with fire. This is very dangerous because you don’t know a lot about the house.

Make sure to carefully consider the costs and risks of removing a home inspection clause before you make an offer. This article will provide an overview of the potential risks of forgoing inspection and offer some alternatives to avoid buyer’s regret.

How to Avoid the Hidden Costs of Not Having a Home Inspected

You must do your research to ensure that you make informed decisions and protect your interests when purchasing a home. An in-depth professional inspection of your home is an essential piece of information. Without a professional home inspection, it’s almost impossible to get a comprehensive and accurate view of your home.

These are some of the major issues that you might not be able to learn about if you waive your right for a home inspection.

Unknown safety hazards

You may not be able to identify safety concerns that need to be addressed before you close the deal. Saltzman states that home inspections can take many hours and will not reveal all safety concerns in a typical home inspection. This includes electrical hazards, fire hazards, and carbon monoxide hazards.

Kraeutler recalls an inspection in which he discovered an animal nest blocking the chimney. Her constant nausea was attributed to her pregnancy by the current occupant. She was slowly poisoned from carbon monoxide that was pumping through her heating ducts.

Kraeutler says that there have been numerous instances during my career where I found safety issues in a house. “I cannot count how many times I have gone in to inspect a house and found that a new furnace had been installed before I was finished. This was because I had discovered a dangerous situation that needed to be addressed immediately.

Replacements or repairs are required.

You might think that you would be able to spot major structural and maintenance problems, which could lead to expensive repairs. Saltzman says that most of the larger and more serious home inspection findings come as a surprise to buyers.

A lot of problems that could cause pause in a home buyer are concealed by nature or design. An experienced Home inspector in Raleigh nc can help you find them. Solfanelli lists a number of problems that can cause serious issues during home inspections. These include leaks that are not visible and brick foundations that could cost more than $100,000 to replace.

Kraeutler states that home inspection is a forensic analysis. It takes years to learn these skills. A professional who has done many home inspections will be able to provide you with information that you won’t find any other way. Knowing how houses are constructed is only one part of the puzzle.

These findings are essential in determining the true condition of a house and deciding if major repairs or replacements would be worthwhile.

There is no maintenance plan for your home

Saltzman says that homes are not like vehicles in that they come without a maintenance manual. A home inspection is more than a checklist of things to do. To make sure that the new owners are educated, home inspectors can also provide advice on future maintenance requirements. Family Handyman is not for everyone.

It is easier to plan for the future and prepare for big jobs, such as roof repair or replacement or a new furnace. Kraeutler says that telling homebuyers when to expect repairs is as important as identifying major defects. It also allows them to budget.

Tagredi agrees. Tagredi agrees that a home inspection gives home buyers the information they need in order to make an informed decision about their home purchase. A home that sells at a lower price, but requires major repairs within a few years after the buyer moves in, may not be the right property for them. You might consider paying a little more to get a home that has modern systems and elements.

Home inspection as a bargaining chip

A home inspection provides valuable insight into the condition of a house and can help to negotiate the final sale price. However, the downside is that the inspection’s bargaining value can be reduced in a highly competitive market with multiple offers.

Most sellers will choose the bid that is contingent on a home inspector over the bid that is not. You will face the following consequences if you don’t have a home inspection as part of your real estate negotiations:

• A lower price for closing costs and selling price. Inspecting results can be leveraged to negotiate for the closing cost and/or selling price. You lose what can sometimes be a valuable bargaining tool by not having an inspection in your hands.
• You can surrender a legal contract out. Major issues found during a home inspection are a way to legally back-out of a contract with a contingency clause. You are effectively buying the house as-is without an inspection. There are less options to walk away from the property if things go wrong.

Saltzman suggests that you reach a compromise to reap the benefits of a home inspector when dealing with a seller who refuses to give one.

Saltzman suggests that you make an offer that is contingent on a home inspection. However, it should be clear that there will not be any negotiations after the inspection. The home inspection is only used for the purpose of the real-estate transaction. This allows you to withdraw if there are any serious issues.

Is home inspection a non-starter? What you can do instead

You don’t have to accept a home inspection condition, but there are ways you can reduce your risk as a buyer. These methods provide only a limited view of the real state of the property.

1. Seek out any recent inspections on the property. Solfanelli says that a seller who has performed their own pest and contractor inspections with contractors they trust would not consider skipping a property inspection. “As long the inspections highlight the risks, the buyer is at least informed.”
2. Request a walkthrough. Saltzman explains that consultations take place during showings. During these visits, the inspector shares their professional observations and findings with potential buyers. However, walk-throughs do not constitute home inspections. They will not uncover defects like a full inspection. Saltzman states that they don’t use any other tools than a flashlight and spend very little time in the house.
3. Ask a friend who is a skilled builder to take a look at the house. However, a licensed inspector can see red flags more easily than a person who has “studied up”. Kraeutler states that you may have an aunt or uncle who is a good home inspector. It takes many home inspections and years to spot problems that an experienced inspector has seen hundreds of times.

You have bought a home without an inspection. What now?

Although you may have purchased your home already, it doesn’t mean that it is too late to inspect it.

Saltzman says that it is still a good idea to have a home inspection done after closing on a property. It is crucial for homeowners to be aware about safety and maintenance issues in their home, especially now that it is theirs. This is why we continue to perform more home maintenance inspections for homeowners.

Maintenance inspections are a great way to show homeowners where to look for prevention.