Is it okay to ever waive the inspection?

Rental Property Investor · Member since 2019 · 199 posts · 42 votes

Hello everyone. Is it ever OK to waive the inspection? I put in an offer for a three family home, recently fully renovated inside and out. In speaking with the agent he mentioned I have a better chance of getting my offer excepted if I waive the inspection. What are your thoughts?

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Edward Liu

Palo Alto, CA · Member since 2017 · 230 posts · 200 votes

My suggestion is to get a better agent. No good agent would suggest to waive inspection as way to improve your chances. Agents have suggested to me to offer all cash, reduce inspection period, reduce closing time, increase deposit, increase $$, etc., but never waive inspection. Not a single agent ever suggested it - I have dealt with at least 100+ agents over the years.

I don't trust anything seller tells - even if they say it is fully rehabbed. Sometimes the seller doesn't even know the structure problems, until someone does inspection. Waive inspection is a big NO for me.

Only scenarios okay to waive inspection is you are an inspector or you plan to tore down the building and do a rebuild.

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Simon Obas
OP
Rental Property Investor · Member since 2019 · 199 posts · 42 votes
6y
@Steven McCutcheon thank you
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Simon Obas
OP
Rental Property Investor · Member since 2019 · 199 posts · 42 votes
6y
@Michael Robbins thank you
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Adrian Orgill
Real Estate Agent · Miami, FL · Member since 2010 · 71 posts · 31 votes
6y
@Simon Obas. If you are skiing this question then it suggests that you have doubts and in that case I would certainly recommend NOT waiving the inspection. Most people who have responded so far that they were on in purchasing a property without an inspection also mentioned that they have been doing this a long time and either they walked the property and “inspected” it themselves or they had someone do it for them. If you take on this property and later find out they their are roof, foundation or moisture issues then you take on the financial burden of getting them repaired and these costs can run high.
1 Reply
Beth Stanley
Residential Real Estate Broker · Eau Claire, WI · Member since 2011 · 21 posts · 3 votes
6y
My cash paying local investors have seen so many homes and get them so affordably that either they see its needs or deal with it when anything come up.
1 Reply
Aaron Gordy
Real Estate Broker · Austin, TX · Member since 2012 · 1k+ posts · 1k+ votes
6y
I have bought a few houses without an inspection but they were in awful shape. I would recommend getting one though. It only costs around $450 or so for sfh or small multifamily. It could be the best $450 ever spent.
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David GreeneBusiness Member
Real Estate Broker · San Francisco Bay Area, CA · Member since 2012 · 225 posts · 266 votes
6y
I am an agent I would disagree that "no good agent would ever advise you waive an inspection". It is not that simple, especially when there are other buyers who WILL waive their inspection contingency.
Something to consider-
The agent is not "advising" you to forego inspections. They are making you aware that if you remove the CONTINGENCY that allows you to back out of the deal if your inspections come back too negatively you can make your offer more competitive.
Here is how I would advise you if I was your agent.
option 1: put down a very low deposit and waive your inspection contingency. If you don't like how the house looks after you order inspections, back out of the deal or ask the seller for what you need to make it worth it.
option 2: Keep your inspection contingency but shorten it. See if the listing agent is insisting on having it removed or if that was just an option your agent casually through out there.
In both cases:
Understand writing an offer without an inspection contingency is NOT the same as choosing not to get inspectons.
Understand that the way you write your offer has everything to do with how bad you want the house and how many others are willing to make their offers more competitive and there is no "right" way to write an offer. The overgeneralized, sweeping advice that sounds like it would apply in all cases is bad advice being given.
Understand how the contract works. A contingency allows you to back out of a deal and recover your deposit . If your deposit is minimal you can factor that in to how risky this really would be.
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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
6y
This depends largely on your experience level and your intentions for the property.
If you are very experienced at rehab and repairs, and can check things like the attic, foundation, crawlspace, electrical panel, HVAC, and plumbing yourself, then spending $500-$1000 for a home inspector to do the same thing doesn't add any value.
Along the same lines, if you intend to gut and rehab the property - what good is a home inspection if you're going to demo everything in the report anyway?
On the other hand, if you are more of a hands-off, turnkey investor, then a home inspection is often worth every penny. If nothing else, it helps you budget and plan for future capex such as roof and HVAC replacements.
It can also help you identify hidden defects that are deal breakers - the best bullets are the ones you dodge!
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Will GastonPro Member
Rental Property Investor · Columbia, SC · Member since 2010 · 1k+ posts · 2k+ votes
6y
@Simon Obas

Price commands due diligence.

I have waived my inspections on offers before if my offer price will cover the worst case scenario after I buy it.
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Erik Muller
Investor · Member since 2017 · 1 post · 1 vote
6y
@Simon Obas
I buy at the auction and there are no inspections. I waive inspection on MLS to get a good deal. I've never regretted it, but I'm prepared to fix in necessary. I live in Seattle area.
1 Reply
Aleejandro Dela Vega
Investor · Las Vegas, NV · Member since 2015 · 71 posts · 38 votes
6y
@Simon Obas
I usually do the inspections myself in a situation like this. If you don’t have that much knowledge then you can try to get an inspector to come with you on a tour prior to writing an offer. But you could be out the $350 or whatever they charge if you don’t get the property.
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Account Closed
remodeling contractor · Birmingham, AL · Member since 2015 · 69 posts · 49 votes
6y
Been to too many houses where not only was an inspection done, but things were missed. A couple thousand dollars in repairs to a chimney because the inspector did not get on the roof, he flew a drone over it for a complete aerial view.

If things are missed WITH an inspection, too many possibilities that things may pop up without an inspection.
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Robert ShortsleevesPro Member
Wholesaler · Fayetteville, NC · Member since 2017 · 121 posts · 145 votes
6y
I buy without it pretty often. :)
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
6y
Originally posted by @Simon Obas:
Hello everyone. Is it ever OK to waive the inspection? I put in an offer for a three family home, recently fully renovated inside and out. In speaking with the agent he mentioned I have a better chance of getting my offer excepted if I waive the inspection. What are your thoughts?

If you're asking the question you aren't ready to buy without using inspections. At some point, yes experienced investors buy properties without inspections when they are dealing with competition and things of that nature. But at this point it doesn't make sense for you to take the risk. Walk before you can run. If you miss out on a few deals because of it no harm, no foul.
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Dan Travieso
Investor · Fayetteville, NC · Member since 2018 · 263 posts · 216 votes
6y
Unless you have a lot of experience purchasing properties and know what to look for the money you spend on the inspection is a necessity. I cannot believe your agent suggested that you don't.
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Jessie ReddPro Member
Flipper/Rehabber · Raleigh, NC · Member since 2018 · 57 posts · 26 votes
6y
@Simon Obas
No in most instances. If you are an experienced licensed contractor with years of experience you may be okay. Even then you may notice something outside your area of expertise and need to bring in an expert. It’s worth it to spend the money upfront and use the report as a negotiation tool if something is found.
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Henish Pulickal
Flipper/Rehabber · San Diego, CA · Member since 2020 · 33 posts · 20 votes
6y
I waive inspections frequently, but that's because I walk the property with my home inspector before getting into contract. Between the two of us, we can find all the expensive issues.
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Doug Crenshaw
Real Estate Agent · St Petersburg, FL · Member since 2020 · 79 posts · 42 votes
6y
As a REALTOR myself... I can't say that I would ever recommend an investor or any buyer to waive the inspection.
If it is because you don't like paying for an inspection... then don't be an investor! It will cost you WAY more than a few hundred dollars in the long run!
Even after many years of investing and helping other investors I always will do or recommend an inspection. I typically will lower it to 5-7 days instead of the 15 days most people use. It is just a waste of my time using 15 days, when I have 3 different inspectors that can usually have it completed in 24-48 hours!
The last comment I will make is that you need to have a heart to heart with your agent... If they truly think that no inspection is the way to go... they may be working for the wrong team or are too new to know what they are saying... either way it could be bad news for you!
Good luck with your decisions!
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Alessandro C.
Rental Property Investor · Montreal · Member since 2018 · 24 posts · 8 votes
6y
Unless you are an inspector yourself, no.
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Joel Jones
Member since 2019 · 5 posts · 3 votes
6y
I would not waive it for them without a price reduction.
0 Reply
John Patton
Investor · Birmingham, AL · Member since 2016 · 315 posts · 206 votes
6y
@Joel Jones
About 3 years ago the $400 inspection cost saved me about 25k because of a cracked and sloping slab home built in early 2000 l’s when just were throwing up houses because of the demand at that time. Good luck JP
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Austin Mudd
Real Estate Agent · Los Angeles, CA · Member since 2015 · 149 posts · 75 votes
6y
If you've seen this deal multiple times, have the team in place to tackle common issues that you're well aware may pop up, and you know there's a lot of upside, go ahead.
But if you're asking the question, then you shouldn't waive the inspection. What's the downside in the deal? Could the downside ruin you? No deal is worth the pain if you can't determine how much downside you might incur.
Pay up for a better deal which even though it might be more expensive, you can quantify the risk and there's other factors that make the deal more attractive (better submarket, better rent growth, less CapEx, etc)

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Matthew Davis
Member since 2020 · 5 posts · 0 votes
6y
@Simon Obas
The first house I sold I had a cash buyer that was dead set on not getting a home inspection. They didn’t see the value of money spent on it. I didn’t feel comfortable about their decision and made them aware of my feelings. I wanted everything to be fully transparent and a home inspection would ease my mind. Unfortunately, they didn’t didn’t budge. Low and behold, a few months later they discovered something they didn’t like and tried to hold me responsible. It was nothing large, but it still was not a pleasant experience.
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Phil Wells
Real Estate Agent · Spokane, WA & North Idaho · Member since 2017 · 135 posts · 170 votes
6y
@Simon Obas if you’re just buying the land or your investment model already includes a new roof, foundation repairs, etc, etc, then absolutely waiving your inspection contingency can really set your offer apart.
Your agent should never advise you to waive the inspection. You could be buying a turd and you won’t know until after you close.
Spend the few hundred dollars now to save you potentially tens of thousands in the future.
My two cents
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Zac Boelkow
Port Richey, FL · Member since 2016 · 129 posts · 48 votes
6y
@Simon Obas
You can waive your inspection but why? Typically the inspectors are on your team. They find issues that can be used as negotiations. For $300-$400 it’s no money and typically I’ve never gone through an inspection where there wasn’t some issue. Even if it’s a small issue that does not warrant reduction negotiations it’s still the sellers burden to fix whatever issues.
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John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
I've never paid for an inspection on a property but we do our own inspection on the walk through. I always have powerful flashlights, ladder, etc when looking a property over. By the time we're done looking at it, we have the data we need to put together an offer. We also do all the needed repairs.
That said, to respond to the OP, no, don't waive the inspection. Yes you may miss a deal or two but it's not worth the risk.
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