If you’ve been aching to buy a home but haven’t been able to seal the deal we feel your pain. After all, pent-up demand left over from tight supply over the past two years, against the backdrop of mortgage rates remaining near historic lows, combined with continued low inventory levels and fewer homes for sale each month than we had a year prior have created a seller’s market and one in which multiple offers are increasingly common.
With home prices on the rise and gaining momentum buyers are pouring back into the market as they attempt to lock in today’s prices and interest rates! As housing markets continue to heat up, many buyers are forgoing the important step of getting a home inspection. While this isn’t a widespread phenomenon, it can easily occur when a particular market heats up. In fact, when a market gets hot, buyers are afraid that if they make their offer subject to the outcome of a home inspection, they may lose the home to others who are willing to take the risk of buying the home without that contingency.
Click here for Tips on Strategies to Win in Multiple Offer Situations
Skip the Inspection Contingency but Never the Inspection The inspection contingency is a sellers least favorite contingency. It not only allows the buyer to walk away with the earnest money, it also provides the buyer with an opportunity to attempt to renegotiate the terms of the sale after they contract terms have been agreed to. For example, if the buyer decides to test for radon and the test reveals levels above the recommended range, it would be common for a buyer to ask the seller to install a radon mitigation system prior to closing, or else the buyer might walk. And boy, do sellers hate to renegotiate in order to satisfy the inspection!
But it would be absolutely foolish for a buyer to forego the inspection entirely. The only thing worse than missing out on the Dream Home? Buying it, only to discover it is a cash-sucking, time-consuming, stress-inducing lemon of a house. Not every story with a run down house has a happy ending.
A prudent and aggressive buyer, willing to assume a little risk but not too much.
If it’s a home you love and if possible, evaluate the property’s condition (best if done by a professional home inspector) and waive inspections prior to making your offer. If the systems are old, the roof is old, or the siding is damaged take these issues into account in your offering price. Homes with unknown conditions, code violations, termite evidence, missing wiring or plumbing, mold, shifting walls or foundation problems or other red flags are valid reasons to avoid the home or negotiate an inspection period, but keep it short 7-10 days. Offer to provide the seller the inspection report.
Other alternatives, submit an offer with an inspection contingency but agree to accept the home “as-is” or to limit repairs to a set amount, or to limit repairs to issues with a repair expense that exceeds a pre0defined amount, say $1,000.
While many agents in today’s market are encouraging their clients to waive inspections we do not. Yes some buyers have been able to dodge the bullet, however, others have purchased homes without inspections only to find that there are thousands of dollars in repairs needed.
In fact, a recent home inspection revealed a crack in the cement floor of a garage attached to a home. While the crack appeared to be tiny, the home inspector later revealed that it was there as a result of a giant oak tree next to the garage. The roots were so huge that the floor would eventually be broken by the trees growth. By removing the tree, the cost was only a few hundred dollars; however, the inspector noted that five years down the road, the entire garage floor would have needed to be jackhammered and replaced, costing thousands.
If you, or someone you know is considering Buying or Selling a Home in Columbus, Ohio please contact The Opland Group. We offer professional real estate advice and look forward to helping you achieve your real estate goals!
The Opland Group Specializes in Real Estate Sales, Luxury Home Sales, Short Sales in; Bexley 43209 Columbus 43201 43206 43214 43215 Delaware 43015 Dublin 43016 43017 Gahanna 43219 43230 Grandview Heights 43212 Hilliard 43026 Lewis Center 43035 New Albany 43054 Pickerington Powell 43065 Upper Arlington 43220 43221 Westerville 43081 43082 Worthington 43235