Thoughts on Waiving Inspections?

Rental Property Investor · RI · Member since 2022 · 13 posts · 7 votes

Looking to purchase our first home... have been recommended to waive inspections if we're serious in having an offer accepted (finally)

My question: Would it make sense to waive inspection in this situation and have an experienced builder come out to look at the property at the next open house? Really don't want to get stuck with problems that I cant see with my naked eye for a first home.

Thank you in advance!

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Greg ScottPro Member

Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes

If you are willing to gamble your earnest money, then that is fine.

Sellers get tired of minor things in the inspection report giving the buyer a chance to renegotiate the price down. So, waiving the inspection period, makes your offer stronger.

That said, I would still do an inspection. If you find a major flaw that will cost tens of thousands to fix, you want to know before you own it. It may be worth losing the earnest money to not buy a dog.

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Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
2y
If you are willing to gamble your earnest money, then that is fine.

Sellers get tired of minor things in the inspection report giving the buyer a chance to renegotiate the price down. So, waiving the inspection period, makes your offer stronger.

That said, I would still do an inspection. If you find a major flaw that will cost tens of thousands to fix, you want to know before you own it. It may be worth losing the earnest money to not buy a dog.
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Mo Karim
Real Estate Agent · Dallas, TX · Member since 2020 · 164 posts · 80 votes
2y
What Greg said is spot on. I personally wouldn't waive inspection and would rather walk away from the deal. Only exception is if I tear down the house to build new.
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Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
2y
Too many people make an offer, often full ask filling intending to not pay that price. They will find problems the seller must discount the price for. They want the seller to have emotionally sold the property and cave to demands to close the deal.
It probably depends on the property and the market. I haven’t had an inspection on any property I’ve bought in Vegas. But they are all relatively new, we don't have basements or foundation/soil problems, etc etc. You can have the AC inspected but there’s just nothing expensive that isn’t visible.
But if you’re buying a 70 year old home in Texas you might have asbestos, lead paint, foundation problem, water intrusion, who knows.
If your earnest money is only $1,000 or $2,000 and you really want the house you can still do an inspection, you just can't back out because of what you find. Then if the problem is less than your EMD you go forward, if it's more, you make the call. If you find a MAJOR problem you can always remind the seller that if they don't discount the deal for you they will have to disclose it to the next buyer.
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2y
@Brandon Durant
Personally I would not waive an inspection.
Most locations today I do not believe are seeing properties flying off the market. We are seeing days on markets slowly increasing and expect that to continue during the winter months
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Richard Davis
Inspector · Orlando, FL · Member since 2016 · 21 posts · 12 votes
2y
As a home inspector myself I would say always get an inspection done......I see so many issue on all types of properties wether it be new construction, flips, old homes, etc.....check out rmdpropertyinspections on instagram so you can see why it's important to get an inspection done when buying a property.
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
Quote from @Brandon Durant:

Looking to purchase our first home... have been recommended to waive inspections if we're serious in having an offer accepted (finally)
My question: Would it make sense to waive inspection in this situation and have an experienced builder come out to look at the property at the next open house? Really don't want to get stuck with problems that I cant see with my naked eye for a first home.
Thank you in advance!

Do not get pressured by your agent to do this. Tell them you will not do that, and tell them not to pressure you. At the same time, shop a real agent. Not one that does fear mongering. This is the slowest time in real estate we've seen in 3 + years. Yes, even in primo markets.

I am not exaggerating when I said I've had about 20 + offers I sent to three different agents in three different markets the last 6 weeks when they complained they could not show that, this is going to be a problem, etc. Some told me to waive inspections, etc. All 20 offers were entertained. Not 1 wasn't replied to within 24 business hours with a respectable counter, relative to market conditions. I told each of the agents be carefully how you move with me, I'm fully capable of moving my business to an agent that'll respect my process. I don't do disgusting offers to respectabel condition houses, and have seen some of my (bad) cash offers(direct to seller) get accepted(off-market only). I just believe given my volume, market understanding, I am being appropriate.

They're simply looking at historicals. And complain "Oh, this wouldn't have worked in April." Correct, what month is it right now?
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
Quote from @Chris Seveney:

@Brandon Durant
Personally I would not waive an inspection.
Most locations today I do not believe are seeing properties flying off the market. We are seeing days on markets slowly increasing and expect that to continue during the winter months

If you're on the market selling right now, you need to sell. Be an appropriate bid to get hit(and gain value), and stand tight. Don't let fear mongering of the last 3 years+ by real estate agents pressure you.

There was a house listed in March for $489k, it has slowly gone down to $389k top of of October. I showed $369,000 a day later against the advice of my agent They countered with $380,000. I said no thanks. They re-listed $379,000 two weeks later, and ask if i was re-interested. I said not at these levels. They went $369,000 Nov 3, $360,000 Nov 10. We're under contract as of yesterday $350,000.

This doesn't always work, obviously. But right now the market is stuck. Lots of agents started too high in Q1 23. And rates just destroyed folks after January bullish run once real investors realized we won't see 6% for a long time.
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Peter W.
Member since 2020 · 351 posts · 329 votes
2y
Are you going to be able to an adequate job of a self inspection? Have you done enough work on houses to catch all the major problems and most of the minor problems?
Does the competitiveness of the market and location make it necessary to waive inspection to get an offer accepted?
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
2y
Unless you are experienced enough to do your own inspection, I would not waive the inspection. There should be time to get an inspector in between when you view it and offers are due.
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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
2y
Like @Theresa Harris said...unless you are 100% confident in your abilities to see everything and fix anything, then you'd be a fool not to get an inspection. I mean, we could be talking $10k, $20k, $30k, or more. Easy. Can your budget handle that kind of hit?
I didn't think so, get an inspection, and a follow up with a GC if anything serious comes up.
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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
2y
If you have to ask this question you should definitely have an inspection contingency. I have made offers without an inspection contingency after walking the house myself, but I've done this a lot and have built my own house as the GC. Even with the experience I have, if I was offering on a building style or area I'm not that familiar with I'd still have an inspection contingency.
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Steve K.
Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
2y
I haven't inspected my last several purchases, but I was planning to fully gut and remodel them anyway. I always recommend an inspection to clients. If it's your first property, then get an inspection. Just don't expect the inspection to catch everything. It won't. But at least you'll have a better idea of what you're getting into. Don't skimp on the sewer line scope! Also due your due diligence on whatever is specific to your location: radon, expanding soils, next to the goodwill (dumping)... whatever you need to watch out for in your area, do your own due diligence. Good luck!
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Justin BrickmanBusiness Member
Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
2y
You really don't have to in this market. But if it's a property you gotta have.
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
2y
Quote from @Brandon Durant:

Looking to purchase our first home... have been recommended to waive inspections if we're serious in having an offer accepted (finally)
My question: Would it make sense to waive inspection in this situation and have an experienced builder come out to look at the property at the next open house? Really don't want to get stuck with problems that I cant see with my naked eye for a first home.
Thank you in advance!

the realtor of yours are working for the seller to grab quick commision LOL
2 Reply
Becca F.
Rental Property Investor · San Francisco Bay Area · Member since 2022 · 1k+ posts · 1k+ votes
2y
Quote from @Steve K.:

I haven't inspected my last several purchases, but I was planning to fully gut and remodel them anyway. I always recommend an inspection to clients. If it's your first property, then get an inspection. Just don't expect the inspection to catch everything. It won't. But at least you'll have a better idea of what you're getting into. Don't skimp on the sewer line scope! Also due your due diligence on whatever is specific to your location: radon, expanding soils, next to the goodwill (dumping)... whatever you need to watch out for in your area, do your own due diligence. Good luck!

I've gotten an inspection on all my offers. I've also been getting the full home inspection vs. the 4 or 5 point inspection. I agree with the other comments. Unless you know how to do your own inspection, I would get the inspection.
I second this about the sewer line scope! That scope saved me ($12,000 to $19,000 quotes to replace a sewer line in Indianapolis area).
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
2y
Quote from @Becca F.:

Quote from @Steve K.:

I haven't inspected my last several purchases, but I was planning to fully gut and remodel them anyway. I always recommend an inspection to clients. If it's your first property, then get an inspection. Just don't expect the inspection to catch everything. It won't. But at least you'll have a better idea of what you're getting into. Don't skimp on the sewer line scope! Also due your due diligence on whatever is specific to your location: radon, expanding soils, next to the goodwill (dumping)... whatever you need to watch out for in your area, do your own due diligence. Good luck!

I've gotten an inspection on all my offers. I've also been getting the full home inspection vs. the 4 or 5 point inspection. I agree with the other comments. Unless you know how to do your own inspection, I would get the inspection.
I second this about the sewer line scope! That scope saved me ($12,000 to $19,000 quotes to replace a sewer line in Indianapolis area).

sometimes I execute two inspections on the same day, because one guy opinion could be wrong. I also want to see their previous record as well, some of these inspector are just want to collect our money asap, while another guy is doing good job. I tried to use inspection from someone that's NOT being recommended by realtor.
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
2y
@Brandon Durant
I’ve bought 20 out of my 21 properties without inspection reports and haven’t had any problems taking them “as is.” Sellers prefer offers with no contingencies and don’t want to deal with their property falling back on the market again. My low ball offers take things breaking into consideration so I’m ok with some issues that come up.
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Sean HudginsPro Member
Real Estate Agent · Chesapeake Va · Member since 2019 · 150 posts · 100 votes
2y
@Brandon Durant , how you phrase this question sounds like you are buying a personal residence, and you said it was your first home. All of that tells me that you should absolutely NOT waive inspections.
A builder is not a home inspector; they have different eyes for different things.
What others have said is correct: sellers hate the idea of being nickel and dimed for minor repairs or pressured into repairing things to get their home sold. However, you should not remove your protections as a buyer, especially not in today's market.
Another option for you is to do an inspection for info only... ***DISCLAIMER: I am not a lawyer and do not do RE transactions in RI, so take this with a healthy grain of salt... What I have done for clients in Virginia is make an offer with an inspection "for info only." There is some debate as to what that means and how that is written in the contract, but usually, I still submit a full inspection contingency, and the understanding is that no minor repairs will be requested. However, It does still mean that my client can pull out without losing their EMD, and if there is a major repair needed, I can still request that repair or some compensation to the buyer for the repair. This is a way to ease the seller's fear of being nickel and dimed on repairs.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
2y
Honestly it isnt the buyer, the seller or either agent that gets to dictate whether an inspection is a good idea. The market decides this. In hot markets with multiple offer situations, the fact is if you want the property you have to waive the inspection. If you dont, the markets determined you have zero chance.
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John Barrows
Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes
2y
NEVER, Waive nor not conduct an inspection! If your agent is telling you that, fire that person.
Your agent is looking for a solid law suit. NEVER get emotional when buying anything, especially a house. Another house, investment, business opportunity will come along and most generally, it’s always better.
YOU can’t even get a home warranty without having an inspection. If you want to take full responsibility for the structure, the power source and overall condition without conducting any inspection, GOOD LUCK! I smell a law suit coming.
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John Barrows
Real Estate Broker · Auburn, WA · Member since 2015 · 151 posts · 106 votes
2y
NEVER, Waive nor not conduct an inspection! If your agent is telling you that, fire that person.
Your agent is looking for a solid law suit. NEVER get emotional when buying anything, especially a house. Another house, investment, business opportunity will come along and most generally, it’s always better.
YOU can’t even get a home warranty without having an inspection. If you want to take full responsibility for the structure, the power source and overall condition without conducting any inspection, GOOD LUCK! I smell a law suit coming.
0 Reply
Marci Stein
Rental Property Investor · New York, NY · Member since 2011 · 956 posts · 510 votes
2y
I have waived inspections on a few purchases. I assume it needs almost everything, so the purchase price has to make it worth my while. however, I have to be very familiar with the property and location.
for me It has been a way to grab up properties that other people want who have more criteria.
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
2y
If you're able to buy the house at land value, that may be the only way.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
2y
Quote from @John Barrows:

NEVER, Waive nor not conduct an inspection! If your agent is telling you that, fire that person.
Your agent is looking for a solid law suit. NEVER get emotional when buying anything, especially a house. Another house, investment, business opportunity will come along and most generally, it’s always better.
YOU can’t even get a home warranty without having an inspection. If you want to take full responsibility for the structure, the power source and overall condition without conducting any inspection, GOOD LUCK! I smell a law suit coming.
I wouldn't say to never waive inspections, but there better be a damn good reason. For example, when I was buying my personal residence there was so much competition (it was back in 2021 when everyone had like 2-3% mortgages) that if you didn't waive inspections, your offer would just be looked over.

But in the vast majority of cases, yes, waiving the inspection is a really bad idea.\
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Eli Yashar
Flipper/Rehabber · NC · Member since 2023 · 11 posts · 7 votes
2y
NO, happy to help :)
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