Waiving a home inspection is never a good idea when buying a home. Even in a “seller’s market,” waiving a home inspection could mean purchasing a home that requires substantial repairs and renovations.
If and when that’s the case, you may need to fork out tens of thousands of dollars for necessary repairs, and there is no recourse you can take against the sellers or their real estate agent.
Risks Of Buying a Home & Waiving the Inspection
There is only one circumstance where we approve buying a home and waiving the inspection: you’re a licensed contractor who can identify what’s needed and perform the work yourself. So no matter how much you’re afraid to “lose the deal,” always schedule a professional home inspection before moving forward with a home sale. Otherwise, you put yourself and your future financial health on the line.
Here are some of the most common risks of waiving a home inspection:
1. Damage to the home and its occupants
You have no idea what’s lurking underneath the roof and in the interior structural portions of the home. There can be significant rot or pest damage, all of which compromise the house’s structural integrity while remaining hidden behind exterior facades.
If a major storm falls between now and when you discover your house’s weak points, or if a large branch falls on the roof, the building could collapse or experience significant damage. This puts you and other occupants at risk for physical injury or fatality.
2. Significant repairs that cost tens of thousands of dollars
The most common red flags or safety issues found during home inspections are the same ones you risk if you opt to purchase a home without one. Below, we’ve listed some of the most common issues we find during pre-purchase inspections and the average cost to correct them:
- Old or damaged roofing ($8,100 for asphalt shingles)
- Poor grading/drainage ($3000+)
- Plumbing or electrical issues (Plumbing: $5000+; Rewiring: $2000+)
- Structural damage ($3,000+ to replace a single rotted structural support beam, $2000+ for rotted siding, etc.)
- Outdated HVAC or inefficient ducts: $10,000
If your prospective home has one or more of these issues at play, the benefits of waiving a home inspection for a slightly reduced home price rarely make financial sense.
3. Overpaying for the house
A home inspection often yields the information you need to negotiate a better deal. Why buy high and waive an inspection when you can use the “red flag” items outlined in a home inspection report to negotiate thousands of dollars off the original sales price?
4. Inability to get homeowner’s insurance
Florida homeowner’s insurance carriers are bailing out quickly, and it’s increasingly difficult to get insurance, let alone an affordable policy if the home isn’t in top shape.
Home insurance companies require a professional inspection report before offering to cover the home and to determine a sensible policy price. Waiving a home inspection puts you at risk for three negative outcomes:
- Carriers refusing to insure the property. In worst-case scenarios, the items uncovered in a post-sale inspection could mean carriers’ legal right to refuse/cancel your homeowner’s insurance policy. That may compromise lending status and leave you 100% liable if significant home damage occurs between the COE and the completion of repairs.
- Sky-high insurance premiums. Even the most affordable Volusia county home insurance policies are notably higher than national averages. If the report yields vulnerabilities compromising the home’s structural integrity, the carrier may say they’ll cover you – but at an exorbitant monthly rate.
- Lender-forced insurance. Lenders require their borrowers to carry a legitimate home insurance policy throughout the loan’s term. If your home doesn’t qualify for insurance, you jeopardize the loan. If the policy premiums are too high for comfort and you hesitate to get a policy in place, the lender has the right to put an insurance policy in place for you. this is called a “lender-placed” or “lender-forced” policy, and it’s tacked on to your mortgage payments.
In all cases, you are better off moving forward with a standard, 4-point inspection and passing up any home that requires too many repairs or isn’t insurable at a reasonable rate.
5. No legal recourse
Real estate professionals must disclose any pertinent information to buyers, and they do this with the information they receive from their clients (the sellers), title reports, and so on. As such, real estate agents hold active errors and omissions insurance policies to protect themselves in case something was missed.
If you waive the pre-sale inspection report, you have zero legal recourse to take the original owners or agent to task if the home is structurally deficient and requires serious repairs or renovation.
Schedule Your Pre-Purchase Home Inspection
Protect yourself, your loved ones, and the future home of your dreams by scheduling a pre-purchase home inspection with Super Inspection Pros. Once you’ve made contact, we guarantee an inspection and a 24-hour return on the report, so you and your Realtor have the information you need to make informed decisions when buying a home.
