With a bustling real estate industry and competition for properties rising, it has become commonplace to seek any advantage possible to elevate their offer. For many buyers, this equates to waiving anything possible to present an appealing package to sellers. One thing that should never be waived, however, is the home inspection. In fact, buyers should do everything in their power to fully complete their due diligence before they close on a home. Sellers should also be cautious before placing pressure on buyers to close as quickly as possible.
There are a few reasons why opting out of a home inspection is a bad idea and buyers, in particular, should be well aware of them before closing on a home.
Inspections Offer Valuable Information
While sellers should accurately complete the Seller’s Property Disclosure Statement (SPDS), buyers should not rely on them to do so. Instead, they should do their own due diligence to identify potentially costly issues before accepting responsibility for them. Even if buyers do not intend to alter their offer if potential problems are discovered, it is important for them to have some idea of the costs that might be incurred once the property becomes theirs.
Additionally, buyers should not agree to a closing date that makes it difficult or impossible to have an inspection completed.
Inspections Guide Pricing
While buyers are not obligated to use inspection findings to dictate price, they can at least use them to determine how high they are willing to pay above list price. In general, paying above the appraised value of the home could lead to problems later on when inflated prices dissipate. The money buyers end up spending to fix up a home may make the home too expensive to go through with the purchase.
Additionally, buyers should avoid purchasing a property before seeing and inspecting it first. While real estate professionals do their best for their clients, buyers should rely on their own research before making an offer.
Inspections Also Protect Sellers
Inspections are not important for buyers alone. sellers can also use them to compare with their SPDS or responding to a request to repair by a buyer. Scheduling a quick closing might be tempting but preventing buyers from conducting their own due diligence could lead to a more complicated closing process. Sellers should also make sure they properly respond to a Buyer’s Inspection Notice Seller Response (BINSR) and note any issues of which they were not aware and, that were not in the SPDS.
In addition to completing a home inspection prior to closing, buyers and sellers alike could benefit from the help of an attorney experienced in real estate law. The professionals at Anthony Law Group will work hard to make sure your deal is a good one.