BOULDER – With today’s market full of multiple offers buyers are often tempted to do anything to get into a home. One thing they should not do is forgo the home inspection. Waiving the option to have an inspection can have major repercussions in the long run. Without a professional inspector viewing the property, the buyer essentially loses the right to make any requests for additional repairs that aren’t agreed to at the time of signing the initial purchase contract.
The argument for waiving inspection is often that in a seller’s market the seller can simply choose to accept one of the other offers waiting in the wings. While some states have disclosure laws that require a buyer to reveal any problems they are aware of, often sellers are unaware of potential problems. In some cases, sellers will have an inspection done before putting the home up for sale to speed up the process and help with disclosures.
Without an inspection, buyers lose the chance to have an independent review of the property they are buying. Inspectors don’t just look at the home, they can provide an in-depth analysis that can determine not just current repairs needed but also things that might become a problem in the future. Inspectors examine heating, cooling, exterior, electrical and plumbing systems for any signs of potential trouble. You can also utilize your report contents to plan for future upgrades to your property. This will help maintain the property’s value.
Even those buyers paying cash and purchasing a property “as is” should have the property inspected. You will still want to know exactly what the condition of the property is and if there is cause to terminate the contract. The bottom line is that waiving an inspection is rarely worth the risk. A home inspection provides an extra level of security and helps you plan for the future in your new home.
You may not have a choice whether or not to have an inspection. Most banks or other lending institutions require an inspection be performed before they lend money for the property because the inspection allows them to make sure their investment is supported by collateral. Mortgages are secured loans, which means that the bank lends money but holds title to the home itself. The home acts as collateral or security on the loan. Therefore, the home must be worth at least as much as the bank lends to the buyer, to serve as sufficient security. The inspection report along with an appraisal confirms this value. Some insurance companies also require inspection reports prior to granting homeowners insurance.