Strategy to Win
Should you waive the home inspection to win in this market? Buyers are doing all sorts of crazy things to get their offer accepted, including offering thousands over ask and waiving appraisals and inspections. I most recently heard of vacation cruises offered to sellers! What?! 😱 There’s no doubt this market is CRAZY!! To waive the home inspection isn’t just crazy; it’s a bad idea, in my opinion! Although you can still get the inspection done, you can’t use it to negotiate repairs. That is not a position you want to be in.
A home inspection is the best way to understand what’s going on inside a home. However, having Uncle Joe or your father-in-law, unless licensed professionals, inspect your home or future home is not the best way to go about it. A professional will check every nook and cranny and go into full detail about the potential issues, big and small. Believe me, as a seller you almost feel violated! 😅
We Want to Win – With Your Investment
We would never recommend bypassing an inspection to our clients. In our opinion, the option period and home inspection are the best use of your time and money. Spending that extra bit could potentially be the key to uncovering a huge, costly issue that you would be stuck with if the inspection had not been done.
A lot of times, home inspections will reveal minor things that can easily be negotiated. In that instance, the buyer and their agent will likely ask the seller to take care of the most important things before closing. With proof of receipts and a final walk-through, buyers can feel confident that they are getting a sound home. If the inspection reveals more significant issues, negotiating can still occur. Sellers can agree to make the repairs, take the cost of repairs from the sales price, or through seller’s concessions. If an agreement cannot be made, the buyer can walk away from the home without penalty during the option period.
How to Better Structure Your Offer
There are more creative ways to structure your offer to make it appealing to a seller. Some things that are important to a seller in this market are time frame, financing, shortened option period, etc. Offer them to stay in the home for a certain time after closing. As a buyer, you know it’s difficult to find a place to go. Make sure you have strong financing with a large down payment, if you aren’t paying cash. Shorten, don’t opt out, of the option period with more compensation for their time. These aren’t the only options, but some ideas. Your agent can also discuss with the listing agent prior to writing your offer what their seller is looking for.
The Seller and The Home Inspection
In the aspect of a seller, the home inspection is just as necessary. If you feel there could be underlying issues with your home, an inspection is a great way to find out. Being a prepared seller and being proactive in the repair process could save you time and money as well. By taking care of issues before going to market, you have an advantage to a quick and easy closing process. Problems found after a contract is signed could be a costly mistake; or worse cause the deal to fall through. Most homes in this market are closing in 30-45 days. That’s not a lot of time to handle found issues. Rushed repairs are a recipe for stress and disaster! Keep in mind, sellers need to disclose any and all issues they are made aware of. Buyers will be more at ease knowing the repairs have been made.
The Home Inspection – An Investment in Itself
The cost of a typical inspection is usually around $300-$400, depending on the size of the home. A few hundred dollars compared to possibly thousands lost to needed repairs, is a no brainer!
All of this to say, a seller, and especially a buyer, should get a home inspection done on any home, new or old. It’s like a report card – it luckily won’t fail every grade but will reveal where improvements can be made. A great agent will walk you through writing the best offer, including the need for an inspection. They will help navigate the report, and make the negotiations if needed. Luckily, I know of one, or two. 😉
Tell Me Your Thoughts…
What do you think about waiving the inspection as a buyer to win the offer? Risky or nah? 🤔
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