Princeton Town Topics – Let’s Talk Real Estate – May 9. 2018
WAIVING INSPECTION CONTINGENCIES: DOES IT EVER MAKE SENSE?
If you’re buying a home, a home inspection can provide you with a lot of peace of mind, uncovering “hidden” issues before you sign the final contract – issues that could wind up being very costly to fix. That’s why most home offers have some sort of contingency based on what an inspection finds – which means you’ll be able to rescind your offer without losing any money, depending on what the inspection turns up.
Unless you’re an experienced contractor or builder, waiving inspection contingencies is almost never a good idea; although home inspections may seem costly, it’s a very small price to pay to ensure you don’t wind up with major unexpected repairs after closing. The caveat: Waiving your right to a home inspection can make your offer more attractive to a seller, especially in a very hot market. After all, without an inspection, you’re “locked in” to the purchase agreement, which means the seller can feel more confident the closing will go through.
Should you waive inspection contingencies in your own offer? That depends on a lot of factors. The best way to decide: Talk to your agent. They can provide you with a balanced perspective so you can decide if waiving inspections makes sense for you and for the local market conditions.