It could be one of your most costly mistakes.
For many homeowners, the current real estate market is very frustrating. While mortgage rates remain historically low – even though they have risen from recent record lows – home prices are still high in many places in the US. To make matters worse, low inventory levels have contributed to increased competition for the limited number of properties available for properties in the market.
Trying to buy a home can all be quite stressful – especially if you’ve made multiple offers and they weren’t accepted. Multiple rejections can lead you to find ways to make your offer more competitive. And if you’ve already hit your budget, that option may include foregoing inspections on homes you’re interested in.
Even if it may seem like a good idea, not Making your offer dependent on a satisfactory apartment viewing could be very unfortunate later on. Here’s why.
Not going through a home inspection could end up costing you
Not going through a home inspection can make your listing more attractive to sellers by reducing the likelihood of the deal falling apart. Sellers are often afraid that through inspections, buyers will try to negotiate the price down by chopping up minor issues discovered by professional inspectors.
The problem is that without a professional inspection it is really difficult to see the real condition of a house. Although sellers in most parts of the country are required to disclose serious known defects, they don’t always do so – or they may not be aware of the bigger issues.
Often times the most costly and expensive issues are to be fixed (e.g., without a professional inspection, buyers may find themselves in a money pit that costs a fortune to repair.
What should be done instead of foregoing the inspection?
If you want to make your listing more attractive by reducing the risk to sellers of using the inspection as a leverage to bring the price down, there is another option that you can try that will still protect you.
You can make an offer dependent on the viewing, but indicate in your offer that the viewing is for informational purposes only, unless there are major problems. You typically have to spend a dollar amount on a problem that you consider serious. For example, you can specify that the inspection is informational and only request repairs or a drop in the price of the house if the inspection reveals problems that would cost more than $ 20,000 to repair.
That way, your listing will still stand out from the crowd, but you won’t risk a high cost of owning a home or even buying a house that is beyond repair.
Ultimately, you should talk to your broker about how to best make your listing competitive, but doing so can be a good middle ground that is a win-win for both you and the seller as both your interests during the In the sales process.