When do you waive inspections and what to do before doing so?

Question

Hey all,

We are actively growing in a competitive market and have noticed a lot of deals we are losing out to people waiving their inspection.

When I was starting out, I remember people always advising against waiving inspection contingencies but it seems to be quite common right now.

I was curious to know if/when you ever consider waiving the inspection contingency?

If you do, what due diligence do you do before writing the offer?

Thanks for reading and appreciate any help!

Bo Smith · Answer

Golan, the honest answer is that you waive inspections when your deal math is so strong that you can absorb worst-case scenario repairs and still profit. But that's rare, and I think most people waive inspections in competitive markets because they're chasing deals, not because their analysis supports it.

Here's what I actually do: I don't waive the full inspection contingency. Instead, I write an inspection waiver limited to cosmetic stuff -- paint, flooring, fixtures. But I require a foundation and roof inspection, period. A hidden structural problem can blow your entire deal, and that's not the cost overrun you want to discover after close.

Before offering on anything, I walk the property with a GC and do a rough scope myself. If I see red flags -- foundation cracks, roof deterioration, sketchy electrical -- I either negotiate hard on price or move to the next deal. Waiving inspections completely means you're betting on luck, and in this market, luck isn't a strategy.

What's pushing you to waive? Is it the property type, or are you just getting blown out on price by other offers in your area?

Kate Sanchez · Answer

@Golan Corshidi I rarely waive inspections. If I do, it’s only after careful pre - offer research and a thorough walkthrough.

Michael Eskenasy · Answer

@Golan Corshidi

The pattern I’ve noticed is that most investors don’t actually waive inspections because the risk is low — they waive them because the deal dynamics force the decision.

If you’re competing in a hot market, contingencies make your offer less attractive. If you’re buying something distressed, you may already assume you’re rebuilding half the property anyway. And if you’ve looked at enough buildings, you start to develop your own quick triage system during showings.

The important distinction, though, is whether you’re removing uncertainty or just ignoring it.

A few things I’ve seen experienced buyers do before waiving inspections:

• walk the property with a contractor or GC before submitting the offer

• check permits / violations with the city

• review utility history and prior insurance claims if available

• assume worst-case mechanical replacements in the underwriting

At that point you’re not really “waiving due diligence” — you’re just front-loading it before the offer instead of after it.

The investors who get into trouble are usually the ones who waive inspections simply to win the deal without having done that work up front.

In most markets today, that’s less of a strategy and more of a gamble.

Kenneth Garrett · Answer

@Golan Corshidi

The FOIA request usually takes about two weeks, but it depends on the jurisdiction.  I’ve gotten responses back in 24 hours for smaller suburbs.  Larger cities it may take multiple request to different departments.  Go on to the city website and look for FOIA request.  You should able to make the request electronically.

Marci Stein · Answer

No. Because it’s the only way I can buy the property very cheap.

Golan Corshidi · Answer

Thank you! Yeah we were thinking of basically doing our own full inspection report in that initial walkthrough. We have our contractor come during the walk but it would be nice to have a neutral third party assess the property on that initial walkthrough.

Janice Carter · Answer

Golan, in competitive markets it does happen but I don’t ever think it is advisable to waive an inspection unless you are an experienced investor who really knows what to look for. Even then, many investors will at least do a quick pre-offer walkthrough with a contractor or inspector to identify major issues before submitting an offer. Skipping inspections can expose you to very expensive surprises.

Golan Corshidi · Answer

Have you ever had a situation where you regretted waiving the inspection?

Marci Stein · Answer

I wave inspections because I want to have an advantage to the seller . I assume the worst in terms of repair and incorporate that into my low offer

I want to make it easy for the seller no Inspection as is quick close

When do you waive inspections and what to do before doing so?

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