This untraditional practice can lead to costly headaches the buyer didn’t see coming
How hot is the real estate market? Homes are selling so quickly that buyers are waiving home inspections. That might get them a home, but it also might get them into unforeseen trouble. “Unless it’s a crazy seller’s market, I don’t know anyone who would waive inspections,” says Gregory Economos, broker associate with William Raveis Real Estate. But this fevered environment shouldn’t deter buyers from having inspections done. “Buyers are so desperate to get a property that they sometimes aren’t being as rational as they would have been,” he says. “Your home is the biggest investment of your life. Be cautious.”
Economos says these buyers are running the risk of an issue arising after closing that is so costly that they don’t have the money to pay for it—and that could ruin their finances, he says. The only justifiable times to waive an inspection, Economos says, are for teardowns or for new construction that comes with a builder’s warranty.
What Lurks?
Termites, plumbing and electrical issues, and roof damage are some of the biggies that are uncovered during an inspection. Inspections can also reveal illegal additions or installations or survey mistakes that lead to encroachment issues. And these “happen more frequently than you think,” he says. Headaches don’t stop there. Mold and elevated radon levels may lurk. While there are often visible signs of mold, only an inspector can reveal if it’s in ductwork or walls. “I’ve had some inspectors come in and say they can smell it automatically,” he says. Septic systems and well water should also be checked, Economos advises. Insurance companies may also require an inspection, especially a wood-destroying organisms report, he notes. And some insurance companies are no longer issuing policies for homes with roofs over 10 or 15 years old.
Moving Forward
Because sellers are receiving multiple offers these days, there are ways to make an offer attractive without waiving the inspection. “Make sure you’re fully approved or have no financing contingency,” Economos suggests. A buyer can also conduct an informal inspection and let the seller know it is for their own information and the sale is not contingent upon the findings. If issues are discovered, “you can ask for repairs or credits, but the seller in this market may say no, so it’s up to the buyer” to decide whether to proceed, he says. For sellers whose home may need some upgrades, Economos recommends offering a credit for the new owners to tackle the project to save time and energy. “It’s easier and causes less of a headache” for the seller. REALTORS® who represent sellers need to acknowledge material defects, he adds. “If a seller’s agent knew and didn’t disclose it, it can cause litigation, which no one ever wants,” Economos says. “It doesn’t happen often, but with the prices of homes in Naples—and people are litigious—it would not surprise meI.”
Assisting the Customer
If a buyer does not live locally, Economos offers to accompany the inspector not only as a service to the customer but for his protection. “It covers my own liability issue,” he says. Perry DeSiato, a REALTOR® Perry DeSiato with Downing-Frye Realty, says that even before an inspection, there are often clues to the condition of a property. “When you walk into a home, you can tell if a home is in good order and well-kept or if there are legitimate concerns,” he says. DeSiato, who was in the building arena for 30 years, looks closely at inspection stickers on air-conditioning units and checks for rust marks on hot water heaters. Like Economos, he also attends inspections, even if he’s representing the seller. “I don’t get involved but will ask at the end if there are any concerns, so I can explain to the seller without any misinterpretation,” DeSiato explains. He keeps a book of dependable, quality vendors, such as handymen, plumbers, electricians, and radon and mold mitigation specialists should a buyer or seller need to make a repair or upgrade. First-time homebuyers, especially, should never waive an inspection, DeSiato says. “This is a big deal for them, and you want to minimize their nervousness and frustrations,” he says. “They’ve never owned a home before, so they have no idea what to look for.”
