Cleveland is in a Strong Sellers Market - What Does that Mean for Buyers?
Good news for home sellers in the Greater Cleveland Area. We're in a "seller's market." (It’s a ‘hot, hot’ housing market in Northeast Ohio, despite pandemic - Fox8.com Jun 29,2020) With interest rates low and a limited supply of houses listed for sale, competition for Cleveland area property buyers is high. In a "Seller's Market" some buyers are so desperate to win a multiple-bid situation they consider waiving their home inspection. Does the mortgage lender requires a home inspection report? Short answer, a home inspection is not a home appraisal, which is required by the mortgage lender, and the home inspection is not required to obtain your loan. However, if someone has suggested you buy a home without a home inspection in order to make your offer more appealing to the seller, read on.
General Consensus - Waiving the Home Inspection Contingency is Not Worth the Risk
At Tri-County Inspections we're obviously big proponents of buyers getting a home inspection - not just because we're home inspectors. We actually got into the business because we believe in helping home buyers to mitigate risk by knowing the full scope of the home's condition and what repairs may need to be prioritized to fully enjoy their new investment.
Risks of Waiving the Home Inspection
But don't take our word for it, here is a list of quotes in articles we've compiled from other sources - not home inspectors:
- "By waiving this contingency, you lose the right to make any requests for additional repairs—or to run away—before the deal closes. This is scary stuff, people. Nobody wants to be stuck in a money pit." - Find Out What Really Happens When You Waive Contingencies to Score a Home, realtor.com
- "....For example, the typical buyer won’t be able to spot asbestos, nor will they see evidence of termite infestation or a leak inside the HVAC system." - The Huge Risk Home Buyers Take When They Waive Inspections, zillow.com
- " ... you probably don’t have the knowledge or expertise to evaluate the condition of a home on your own. That’s where the inspector comes in. These individuals are trained to evaluate all aspects of a house, including the roof, foundation, electrical and plumbing system, and more. And when you consider the fact that home inspections usually cost around $300 to $400, the decision becomes even easier. That’s a small price to pay for peace of mind." - Is a Home Inspection Required When Buying a House?, homebuyersinstitute.com
Sweetening the Pot for the Seller While Limiting Your Risk
Look, we get it. You're in a seller's market and you may be anxious to win in a multiple-bid situation. We advise that you don't get desperate enough to waive the home inspection contingency. However, there are situations which could merit buying the home "as is" and there are some potential solutions for winning that multiple bid situation and still getting a home inspection to mitigate your risk of buying a money-pit.
Are You in Construction Industry and Buying a Fixer-Upper?
MAYBE if you're an expert in the home construction industry, and you already know that you're buying a fixer-upper, than it's less of a risk to waive the home inspection because you've already factored in the cost of making repairs. However, in almost every other situation it is super-risky to buy a home without getting a home inspection.
Are You a Well-Funded Buyer?
If you are a well-funded buyer, and a major repair is not going to break the bank, there's a few ways to sweeten the pot for the seller.
- Pay cash. Cash will always be more appealing to a seller because they don't have to wait for your funding and worry it will fall through. If your funding falls through, the house has to go back on the market and they start over - a big hassle for the seller. Typically, if you're paying cash, the seller will be happy to wait a few days for you to get a home inspection.
- Waive the Home Inspection Contingency but Get the Home Inspection Report. When you waive the inspection contingency you've told the seller you won't use the home inspection to negotiate. You won't be asking for seller concessions for home repairs or price breaks. This makes your offer more appealing to the seller. However, you can still get an inspection. You order your home inspection immediately. If the results turn up some nightmare you don't want to deal with, you could still walk away from the deal - at the sacrifice of your earnest money (consult a real estate attorney and the contract). If the home inspection does not turn up any surprises, you can start planning home improvement projects. With a thorough home inspection report from Tri-County Inspections you can determine if you start with replacement windows, an electrical panel, new patio doors, upgrading to a tankless water heater or improving the insulation. You win by knowing you didn't just buy a nightmare money-pit and now you can determine what takes precedence for your comfort and safety before moving on to cosmetic improvements.
Check Availability and Schedule Your Inspection On-Line Now
At Tri-County Inspections we know getting your home inspection done as soon as possible is critical in a sellers market so we've integrated our inspection schedule with our website so that you can see what's available now using our online scheduling . If you need a fast home inspection, one that's thorough and detailed, give Tri-County Inspections a call at 440-653-1947, or use our online scheduling feature to get on the calendar ASAP.
If you're a seller and want to move along a multiple-bid situation, give your prospective buyers the confidence to waive the inspection contingency with a pre-listing home inspection:
Even if you're buying a newly constructed home, read why a home inspection is critical to saving you thousands down the road:
Not to be alarmists, but when talking about WORST case scenarios, this post is definitely relevant and describes the total worst case scenario of what dangers could be lurking in a home that could be found by a qualified home inspector: