When looking to buy a home during a seller’s market, bidding wars resulting from limited inventory have seen many homebuyers opting to forgo home inspections altogether so their offers are more attractive. So, how do you get the best of both worlds – make a more appealing offer and ensure you get a full home inspection before making a huge purchase? The devil is in the details.
How does an informational inspection differ from an inspection contingency?
During accelerated housing market/bidding war conditions, many sellers are hesitant to accept any offers that require a traditional home inspection. But, you can change the offer language to an ‘informational inspection’ instead of the typical ‘inspection contingency’ so the seller understands you’ll be getting a full professional inspection, but that the transaction is not contingent on the results of the inspection or any information that the buyer discovers. In other words, the deal is firm – the buyer is waiving their right to cancel the transaction based on the outcome of the informational inspection. In addition, the buyer won’t be asking the seller to pay for any issues that may be uncovered during the inspection.
An informational inspection still empowers the buyer to better understand the property and exactly what they’re purchasing. After all, the value a buyer derives from an ABCHI inspection includes:
- Information that empowers better planning
- Mitigation of risk for unexpected surprises
- Full disclosure on the property so they can prioritize and budget upon possession
- Inspection report acts as an instruction manual for the new home
- Education on how the property operates
- Complimentary technical advice from their inspector for as long as they own their home
This one change in the offer protects buyers while also lowering litigation risk post sale for sellers and Realtors who could otherwise be seen as bullying buyers into blind buying whereby the buyer fully waives the home inspection in the offer.
Even with a carefully constructed offer, however, buyers may still face rejection during extreme market conditions. Be prepared to hit some bumps in the road to protect your investments. Your first or next home is out there waiting for you – it just may not be among the first you see that pique your interest.
It’s easy to get caught up in the excitement involved in buying a home you love. That’s why it’s so important to prepare for the market and consider the ramifications. You’re literally making the highest priced transaction of your lifetime when you’re buying a home, so it never makes sense to enter such a contract lightly.
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