In today’s competitive real estate market when inventory is low in a lot of places, some homebuyers are choosing to skip a home inspection. This is a strategy used to get an offer accepted by a seller who wants a quick and easy sale. While it may be an effective way to close a deal, it is not a smart move long-term. There are serious risks of skipping a home inspection that can affect your finances and satisfaction with the home for years to come.
Lose Negotiating Power by Skipping a Home Inspection
One of the main benefits of a home inspection is that a buyer can use the report to leverage negotiations. Leaving a home inspection contingency out of your offer means that you can’t negotiate a deal or back out of a sale based on the results of a home inspection.
A home inspection might reveal serious issues that change your opinion about the value and quality of the house you are buying. You may decide that it is not worth what you originally offered or that it will be more work to fix it than you’re willing to complete.
Pay Too Much for the Home
A home is priced by the seller based on the market value and the perceived condition of the home. They may not know the actual condition of the home if they have not had a pre-listing inspection performed. The seller wants to give their house the benefit of the doubt when pricing to get the greatest return on their investment.
During a walk-through, you may assume that the house is worth the price based on what you can see. However, it takes a more thorough investigation by an experienced professional to know what repairs, replacements, and improvements are really needed. If you pay the asking price for a home that needs a new roof, you’ll end up feeling like you overpaid.
Get Stuck with a Money Pit
Homes that need several extensive and invasive repairs are known as “money pits”. Usually, structural issues are the culprit, but there are other expensive repairs that a house may also need.
Faulty electrical wiring or plumbing can mean a house needs to be completely re-plumbed or re-wired. A severe termite or mold infestation may require parts of a home to be completely replaced. If you opt out of a home inspection, you will have no way of knowing whether or not you are investing in a money pit.
Skipping a Home Inspection and Safety Hazards
Skipping a home inspection can do more than put a dent in your finances, it can also affect your family’s safety. Home inspections look for safety issues like fire hazards, mold, and structural weakness. Not only can safety issues be expensive to fix, but they also put your family at risk.