You can find a happy balance with your inspection contingencies.
Our hot seller’s market means it’s difficult for buyers to find homes. Because competition is so fierce, some buyers waive inspection contingencies in order to create a more attractive offer. And guess what? It works.
You may feel apprehensive about waiving things like inspections, which is why today I’ll be explaining different inspections and how buyers can remove these contingencies while also mitigating risks. The four types of inspections include:
1. A full pre-inspection: This is done before you go under contract on a home. It lets you go through the entire property with an inspector, and you receive a report about any issues or concerns. If you’re allowed to get a pre-inspection, you can remove the inspection contingency in your offer.
2. A walk-and-talk: This is like a mini-inspection that is done before making an offer. It allows you to come into the home with the inspector and go through the home for around an hour. They will inspect the major areas of the home without making a report, but they’ll talk with you about the things they find. During a walk-and-talk, the inspector is really looking for big issues that cause safety concerns or costly repairs.
3. A right to void only: In many cases, sellers are not allowing pre-inspections because they want to make more time for buyer showings. If you are unable to waive your inspection, you can still create a contingency with what’s called a “right to void only.” Essentially, this means the home is sold as-is and the seller won’t have to fix anything found in the inspection report, but you can still void the contract if you find anything beyond your comfort level. It’s a great way to protect yourself while being more competitive.
4. A right to negotiate repairs: This type of inspection is uncommon in today’s market because it’s the least competitive. After going under contract, it allows the buyer to go to the seller and renegotiate the price or ask for specific repairs. This may work if a home has been on the market for a while (in our market, “a while” is a week or two). A few of my clients were able to do it recently, so it is possible. Again, you should be focusing on the big-ticket items instead of smaller issues.
By understanding the different types of inspections, you can find a comfortable balance that makes your offer more attractive but also minimizes your risks. If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.