Should Buyer Waive Inspections?
By Jim Palmer Jr.

In the current frenzied market in our region, frustrated buyers have become creative and somewhat reckless in their attempts to win intense bidding wars where they are usually forced to compete with multiple buyers for the same property. In order to make their offer stand out, some have employed the risky tactic of waiving the right to complete a home inspection.

I call that a risky tactic, since it negates the opportunity for buyers to really see and know what they are buying. Sure, they have the chance to look when they did their initial viewing of the property, but not an in depth look into the dark spaces like the attic and crawlspaces, or a look at systems such as wiring, plumbing and heating or an investigation to be sure appliances work. Some savvy buyers who are knowledgeable in the building trades, or who have owned multiple properties in the past, may look through a lens that is much more discerning than a first-time-buyer perspective, so that risk may be less for them, or at least they may be more capable than first-timers to deal with hidden issues later.

A savvy investor recently purchased a home after waiving the inspection and found that things weren’t as rosy as they thought when they made their offer. They had been careful enough however on their initial walk through of the vacant property to make a detailed list of items they would negotiate upfront on their offer for the seller to fix prior to closing. It was obvious from the list of requested repairs that they had been in the crawl space and had done a more thorough-than-average look. The seller completed the requested repairs so buyer could do a final walk through and so the appraiser would have the chance to see it after those repairs were completed. And yet, after the closing the buyer threatened seller with a lawsuit if they didn’t agree to pay for additional repairs for defects buyer found after the fact. To say they had some buyer remorse may be an understatement.

Would they be in the same boat if they had just requested the opportunity for the home inspection process in their initial offer? Probably not. Instead of taking responsibility, they are now attempting to pass the blame onto the seller for “lack of disclosure” and even blame the appraiser for not catching those defects, which are items appraisers don’t usually investigate.