Waiving a Home Inspection To Secure Your Dream Home

Imagine finding that dream home, but the seller mentions it has multiple offers on it. In a super competitive or “hot” real estate market, it can take offering concessions and removing “contingencies” to place the winning bid.

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A recently popular contingency waiver is forgoing the home inspection. Whether this is a good idea or not can be debated, and one should consider certain factors before choosing this path.

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The Data

According to Zillow’s monthly market report in January 2022, there were about 833,000 homes available.

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That's half of the 1.5 million available in 2020 before the pandemic started. Lack of supply can cause homebuyers to want to win a bid to remove the home inspection—and other contingencies—to beat the competition.

According to Redfin, a national real estate brokerage, through February 2021, home inspection contingencies were waived in successful offers 13.2% of the time, up from 7% in 2019, and in 2021, that number jumped to 21% among successful bids from Redfin agents.

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The decision to skip a home inspection to secure a home of choice can be difficult in a hot real estate market. A lower inventory of available homes can make this even more challenging.

In most cases, Realtors® ultimately say a home inspection is vital to the home buying process and should not be overlooked for peace of mind.

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