In a super-competitive housing market like the one that we are currently experiencing, many home offers are resulting in bidding wars. With this said, it is not uncommon for buyers to remove any contingencies that may make their offer stand out. For example, we all know that cash is king. Therefore, oftentimes cash buyers have a considerable advantage vs buyers obtaining a loan. Sellers prefer cash buyers because it removes the appraisal or loan approval contingencies. This increased level of home buying competition has forced many buyers to consider tactics to make their offers more competitive. One such tactic is foregoing the home inpection.
Home inspection or no home inspection?
The short answer to this question is that it is not advisable to waive a home inspection. If you are obtaining a loan, this is probably not an option anyhow. Even if you are a cash buyer, it is still advisable to have the home inspected. Of course, certain situations will dictate the best approach. For example, if you are a cash buyer that is simply planning on tearing down the structure because you are buying the property for the land value, then it is safe to say that you do not necessarily need a home inspection. In this scenario, a soil test may be advisable though.
Assuming that you are planning on residing in the house upon purchase, then it is wise to have a home inspection performed. Most importantly, a home inspection may uncover potentially deadly living conditions such as faulty or unsafe wiring. This may result in a significant fire hazard. To make your offer more competitive to a seller, you may consider shortening the inspection period. For example, a 5 day inspection period may be more desirable to a seller than a 10 or 15 day home inspection. As a best practice, it is a good idea to obtain a list of reputable home inspectors from your real estate agent in advance. With the market as active as it currently is, many home inspectors’ calendars are quite booked. Needless to say, getting a home inspection done within a few days can be challenging in the current market.
In closing, buyers should always consider tactics to make their offers stand apart from the competition. Although we do not advocate foregoing home inspections, it is possible to shorten the home inspection period on the contract. Regardless, it is always wise to have a property thoroughly inspected prior to potentially taking ownership and moving into it.
Are you thinking about buying a home in South Florida? We can help. Contact Live South Florida Realty, Inc. today to get started on finding your piece of paradise!