If you’re buying a home, the smart thing to do is to have it inspected before you sign the purchase and sales agreement. An inspection contingency is a clause in an offer that gives the buyer the right to have an inspection performed within a certain time frame. An inspection can keep you from making a bad investment by buying a home that is in disrepair. If an inspection shows unfavorable results, you have options like canceling the contract or negotiating. To snap up a home quickly, some buyers commit to buying a house with no inspection. Be aware that if you do this, you will be responsible for any repairs that the property needs. Here are 5 risks of waiving a home inspection contingency.
You Might Encounter Serious Structural Issues
Home inspections don’t just tell you about faulty appliances. An inspection can turn up serious structural issues and other kinds of problems that can cost hundreds of thousands of dollars to fix. Keep in mind that many of a home’s most serious problems may not be visible to someone simply walking through. They may only be detectable by an experienced home inspector.
Waiving a Home Inspection Places You in a Weak Negotiating Position
If you forego an inspection, you lose the right to negotiate or get out of the deal if there’s something seriously wrong with the property. If you do have an inspection contingency, you have alternatives such as walking away or asking for a better price.
Long-Term Financial Consequences of Waiving a Home Inspection
If you buy a house without having it inspected and something big comes up, you are on the hook for a lot of money. Big expenses that show up when you are already financially maxed out with your mortgage could drown you in debt. Waiving an inspection has the potential to affect your finances for the rest of your life.
Serious Safety Hazards
Many of the problems that might be uncovered in a home inspection pose more than just financial risks. They threaten the safety of everyone who lives in the home as well. Inspections may reveal carbon monoxide concerns and problems with the home’s wiring that pose electrical and fire hazards. Asbestos, pests, and lead paint are other issues that can make a home dangerous.
A Home Inspection Shows What Preventive Measures to Take
Home inspections just show more than just the immediate and pressing issues. They show areas that can become problems down the road. This information can help you to plan and budget to take steps that prevent expensive problems from developing in the first place.
An inspection can prevent buyer’s remorse for many reasons. Before you invest in a property and move your family into it, you are obligated to find out as much as you can about it. A home inspection performed by a qualified inspector is the best way to protect yourself as a buyer.