Can you get a home inspection even if you waive the inspection contingency?
For the last couple of years while the number of homes for sale is low and competition is high against other interested buyers many are waving the inspection contingency when putting an offer in on a home.
Homebuyers are doing this with the hope that they will win out against other offers by releasing the ability to hold a homeowner responsible or be able to negotiate the cost of repairs if a professional home inspector finds issues.
It can’t be possible to waive an inspection contingency without regretting it. The main focus is to make sure you are strategic and smart about waving this contingency. You do not want to let go of any protections. You still should communicate you reserve the right to have a professional inspection conducted during the due diligence phase. This inspection however will be conducted for the focus of gathering information about the home’s current state of livability and need for repairs while not holding the homeowner responsible for making any repairs.
You can actually wave a home inspection contingency but still have an inspection conducted on the property.
The risks a buyer takes when waving a home inspection contingency on an offer contract
Having a professional inspection conducted is a very common part of the home buying and selling process. After the offer contract has been excepted and signed, a buyer can hire a licensed inspection professional to check out several functions of the property.
This includes items that would inhibit the safety of living in the home and getting information about smaller issues that may only be cosmetic.
Traditionally when the market is more balanced or is considered to be more in the favor of a buyer in the form of a buyer’s market an inspection can be used with a lot of leverage as a bargaining chip. For example, if there is an issue that should be repaired but does not necessarily make the home unlivable the buyer can ask the seller to make the repair or give credit in the amount it would cost to make it.
The reason that a buyer has more leverage in a home inspection contingency on an offer in a more balanced market is that there are plenty of homes for sale but the buyer could move on to many more properties and it leaves the homeowner in a state of trying to win over the interest of the next buyer. Whereas right now there are many interested buyers all fighting for the same home so a seller can deny a buyer request and just move on to the next one.
Making a request for repairs could cause your offer to be denied when there are several other buyers in line to buy the home. But waving your contingency to negotiate repairs means that you should be prepared with enough money to make any repairs that may come up as anything that is found is the responsibility of you when the contingency is waived.
If you waive the contingency make sure that you are communicating you are not waiving your right to an inspection.
The wisest way to waive an inspection contingency
The savviest of homebuyers are modifying the language with in-home inspection contingencies. Many of them are wise and include wording that allows them to hire a professional inspector but let the seller know they will not hold them accountable for repairs valued at a certain number or less. Some others use the strategy of specifying that they will only try to negotiate terms after they hire an inspector if there is a major safety issue.
In this strategy, a buyer is still protecting themselves from purchasing a home with major issues, but communicating to the homeowner that they will not hold up the homebuying process in the case of repairs that may be significant but not a safety issue.
Even if you agree to the home sale not being contingent on a professional inspection whatsoever it is still a good idea to hire a professional inspector and have them look over the property during the closing process as your due diligence. In some cases, an extreme safety issue could still give you the legal right to back out of an offer such as in the case of toxic mold.
For more information on home inspections in the Champaign Illinois area please contact us anytime.
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More information for Home Buyers
- Is a Pre-Offer Inspection a Good Idea
- Mistakes to Avoid During Your Home Inspection
- How to Read and Decipher the Home Inspection Report
- 3 Factors Behind the Cost of Home Inspections
- Home Inspection Repair Requests Buyers Shouldn’t Make
- 9 Ways to Get the Most Out of Your Home Inspection
- 5 Home Inspection Mistakes People Make