Real Estate: Waiving inspections?

By Kristin Piccone

It is no secret that we are well into a seller’s market across the nation. Record low mortgage rates, record low home inventory are some of the contributing factors to this competitive real estate market. More times than not, buyers are experiencing multiple offer situations on more than just one occasion. Depending on the property and the buyers experience, knowledge and comfort level, inspections are being waived~ but is that the smart choice? 

When I represent a seller in a real estate transaction, I always explain that there is more than just price within a purchase and sale agreement (P&S). A learned trait in presenting offers to my seller clients is to, “start from the bottom”. In today’s world, there are five pages to a P&S. Within, there are many conditions and contingencies, and price is on page 1. To give my seller clients a full understanding of the offer, I start on page 5 to ensure they are fully aware of its contents and not just waiting to hear the price; other conditions is on page 4, seller concessions is on page 3, financing is on page 3, due diligence or inspections is on page 2, and finally, price, earnest money and closing date are on page 1.

Previously, I have explained to seller clients that an inspection waiver could be “worth its weight in gold.”

Now, where it is more and more common to have several offers with the same waiver, it can make for a more difficult decision and the other contingencies are taken into consideration.

For example, amount of earnest money deposit, non-refundable deposit, seller concessions, financing type and down payment, to name a few. The point here is, that it may not always be in the seller’s best interest to accept an offer just because of an inspection waiver. Looking at the other contents of the P&S and having a clue as to the strength of the buyer is really what I would recommend. With this, you know that all parties are aiming to reach the closing table and you, as a seller, are giving the buyer an opportunity to learn more about the home and how to maintain it.

A seller is able to have their home pre-inspected prior to listing their home actively in the Multiple Listing Service (MLS), as well.

Personally, I love coming across a home that has been pre-inspected, for my buyers, and, I always recommend to my seller clients that it is an option that they can take advantage of if they have any uncertainties or unknowns and do not want to face any surprises later on in the transaction that could impact the sale altogether.

When I represent a buyer in a real estate transaction, I learn about them, their knowledge and experience in regard to real estate. If I am working with a buyer or investor who has purchased real estate a time or two, and maybe they are going to renovate anyway, it may not be as bad, if they decide to waive inspections.

Any other buyer, on the other hand, shouldn’t always react and waive the inspection. There are strategies, even, that I have experienced where a buyer can have an inspection of the home, however, let it be understood by the seller that unless there is a structural, health or safety concern, you, as the buyer are simply looking to learn more about the home and what it may need for maintenance.

During what is the largest transaction in one’s life, if a buyer can have their fair share and opportunities at the home( i.e. due diligence), they feel much better during the transaction and can make other negotiable items go that much smoother further along in the transaction.

If you have any questions or want to talk about how you can be competitive in this market as a buyer or seller, I am always happy to help!

Call and text friendly 207-951-1393 or email: kpiccone@landinghomesmaine.com. Be well and I look forward to hearing from you soon! <