By: Jonathan Duerr, Senior Real Estate Professional with William Raveis South Florida
Hi Folks! Well, not much has changed since we last spoke…well except inventory is lower, demand is higher, and interest rates are even lower than last month. With all of that said, it is becoming a “bidding war” for homes in most cases – forcing the buyer to go above asking prices and make their offer has tight and strong as possible. One-way buyers are doing this is by waiving their inspection. I recently read a statistic that 1 in 5 home buyers is choosing to waive their inspection rights to get their offer accepted over competing offers on the same home. The thought process being – it makes the deal stronger and more concrete to the seller, much like a cash deal holds more weight than one that has financing tied to it. I will explain a little more in depth, but if this is as far as you are going to read, please read this…
Do Not EVER waive your right to an inspection, unless you are doing a full home renovation, or you have bags of cash and do not mind making a sequel of The Money Pit.
So, let us back up now and talk about what an inspection is and why it is so important. Once you have agreed on terms such as a price and closing date, another agreement is on the inspection period. This period allows the buyer due diligence to make sure the home they are buying is what it says it is, and hopefully not hiding any major flaws. A home inspector will look at a home’s HVAC system, interior plumbing and electrical systems, roof, attic, floors, windows and doors, foundation, basement, structural components, look for mold and termites, and much more. Then they provide a professionally written report with results along with pictures to verify. So, in its rawest form, an inspection protects you from possibly buying a home with a bad roof, electrical malfunctions, mold, etc. Now, if you are purchasing the home with full knowledge of said malfunctions, or knowing you are going to completely renovate the home, then yes maybe you don’t need to spend the extra couple hundred on the inspection. However, even if you waive the full inspection, I would most certainly have the plumbing checked because that is one area that can cause a lot of crappy problems.
So how do you compete against multiple offers without waiving an inspection?
1. Have your agent sell your story: Write a personal letter to the owners describing yourself and your family and how you cannot wait to live there. Let them know you are there to make memories, not just to make a buck.
2. Make a quicker inspection time and closing date if possible so the seller feels more confident about your eagerness to close.
3. Put more money into escrow, and for your down payment, showing your financial commitment to the deal.
4. Always accompany your offer with a pre-approval letter from your lender, and if possible, have your lender and seller’s agent speak so they become more confident as well.
Throughout my 16 years in real estate I have helped clients in all aspects including buying, selling, investing, and renting homes, and I have become fortunate enough to call this my passion and not just my career or job. The home buying/selling process to me is much deeper than a mere transaction, it is helping with one of the biggest decisions in life, which we can now all agree has become more important than ever. If you are thinking of buying, selling, or renting a home, or simply curious about the market and have some questions, please do not hesitate to reach out. Until next time!