Is Waiving The Inspection Wise?
By Jim Palmer Jr.

 Any buyer who has struggled to find a home in this frenzied-sellers-market, with all-to-common bidding wars, knows that in order to be the winner they must be innovative in their approach to create an offer that stands out from the pack.  Of course the most obvious tactic is to simply out bid any competitors, but money may not be the only consideration that could sway a seller.    
     
One strategy some buyers have employed, in order to be more competitive, is to waive the home inspection, thinking that by eliminating that whole process from the buying equation sellers might be enticed to choose their offer.  At first glance that argument makes sense because doing so may streamline the transaction, but it may not really be in the best interest of the buyer or seller.  
   
Even though the inspection process may seem bothersome to a seller, that procedure does serve as a liability buffer for them, which is a significant factor in any transaction.  Conversely, think about how risky it could be to purchase a home without really knowing much about it?
     
Maybe a better option would be to ask for the opportunity to do a home inspection for information purposes only, eliminating the contingency that allows the buyer to walk away unscathed.  In that scenario a buyer might still walk away, but would lose their earnest money.  Seller would be happy because the buyer would have some skin in the game and seller might still be insulated from some liability.  That would allow the buyer to investigate, while allocating the risk more evenly. 
     
Some sellers have tried to cut to the chase and have paid for a pre-inspection out of their own pocket that is completed prior to listing the home.  The logic is that they can provide that information for buyers before they have even seen the home and can not only shorten the escrow time period, but possibly dissuade the buyer from doing further investigation of their own.  This strategy is risky for the seller because that puts all of the possible liability in them instead of allowing that shift to the buyer.  When the buyer chooses their own inspector and pays for their own inspection it radically changes the risk allocation. 
     
The point is, don’t waive the inspection altogether.  Instead, find a way for the seller to see it as less of a risk to them.