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What homebuyers need to know about waiving an inspection—and what you might do instead.

The housing market in West Michigan is hot! Redfin reports that during the month of April, home prices in Grand Rapids were up nearly 20% compared to last year, and, on average, homes were selling after just five days on the market. As a result of the competitive market, some homebuyers are opting to waive inspections to make their offer more attractive to sellers. But is this a good idea?

Inspectors check the condition of a home’s structure and all its systems. Homebuyers typically rely on inspections to assess if they’re willing and financially able to address any inherent problems. In a cooler housing market, problems discovered through inspections are often used as a bargaining chip to get a lower price.

The risk of waiving a home inspection

Waiving an inspection lets a seller know you’re not going to ask for concessions for repairs. However, it puts you financially at risk because you don’t know what you don’t know. Waiving a home inspection essentially means you’re buying the home as-is. Any problems that may arise are yours to correct and pay for.

Alternatives to waiving an inspection

However, you can still present a strong offer that protects your interests without waiving a home inspection.

Some buyers ask for an inspection with the provision that they won’t ask for repairs or concessions on anything that costs less than a certain figure to correct, such as $500 or $1,000. This lets the seller know they won’t be held responsible for repairs.

Another move homebuyers can use is to ask for an informational inspection. This means the offer isn’t contingent on the results of a home inspection, but an inspection will still be done. If a major issue is uncovered, the buyer has two options: they could move forward with the sale or they can back out of the deal and likely forfeit the earnest payment. While no one wants to lose their deposit, it could be a preferable alternative to being stuck with a home that has major structural, mold or other such problems.

Whenever you buy a home—even a newly constructed one—an inspection provides valuable information because it alerts you to any existing and potential problems. You can use this knowledge to decide whether to go ahead with the deal; budget for needed repairs; and plan for future maintenance and upgrades.

If you’re financing a home, get pre-approved

Many homebuyers make their proposal stand out with a cash offer. For sellers, this is a surer deal than an offer contingent on a buyer getting financing. If you’re financing a home, one way to bolster your offer is to accompany it with a pre-approval letter. A pre-approval reassures the seller that you can get the financing needed to cover your offer.

If you’re shopping for a home, talk to one of our mortgage loan officers about getting pre-approved for a home loan by calling 800-991-2221 or applying online.

Consumers helps thousands of members finance land, first and second homes, and home improvement projects each year. We’d love to help you with a mortgage or home equity line of credit; contact us online or call us at 800-991-2221.

Consumers home loans

We’d love to help you with a mortgage or home equity line of credit.

Learn more