If you’re looking to buy a home, one of the key deciding factors in setting your budget or determining your overall buying power, is your mortgage interest rate. In recent months, the Federal
To Inspect, or Not to Inspect
Dated: March 7 2022
If you’re a buyer in today’s crazy real estate market, you know the competition is fierce! You’ve toured several homes, you’ve seen the other buyers (competition) lined up outside waiting to enter, you’ve fallen in love (and then out of love) with many properties, and you’ve written several offers only to discover your offer wasn’t quite good enough to snag your next dream home. The frustration is real, which has pushed some buyers to bypass crucial steps of the buying process in hopes of achieving that winning offer.
Buying a home, for most of us, is the most important and costly investment we’ll make in our lifetime. If you’re a first-time home buyer, your excitement is through the roof (SO exciting!!), and you may be a little overwhelmed with all the paperwork, financial housekeeping, and timelines involved with purchasing your new home. Having a dedicated and trusted real estate advisor by your side is a great lifeline, but when it comes to securing your dream home, you (the buyer) are in full control of your own destiny. Regardless of the market, however; especially important in a seller’s market, knowledge is power and securing a savvy real estate agent to help with navigating the buying process while providing valuable feedback and guidance to help you secure your next home is invaluable.
With limited inventory and competition in abundance, buyers are pushing boundaries to secure a winning offer. One tactic to “sweeten the deal” when writing offers is to forego a home inspection. From the seller’s perspective, abandoning an inspection is one less barrier to ensure the highest return on investment and clears the path to closing. Nonetheless, from the buyer’s perspective, choosing not to have a home inspection is a risky endeavor that could result in unforeseen issues, costly repairs, and a landside of troubles down the road. Regardless, buyers are choosing to write offers above listing price, in addition to waiving inspection contingencies, in hopes of getting the highly prized accepted offer.
Opening the door to increased risk by foregoing a home inspection has become a common practice in today’s market. As a buyer, it’s important to understand that there are several steps within the buyer process that are intended to protect the buyer from risk, ensuring that your dream home REALLY is dreamy, and doesn’t end up being your worst nightmare. A home inspection is your insurance policy to safeguard you from any unexpected, and possibly devastating, issues that you may inherit with your next home. A detailed inspection report provides you with an up-to-date health check of the home and provides valuable information on future maintenance needs and additional foreseeable costs associated with maintaining your new home. An inspection also opens the door to renegotiation with the seller, providing an opportunity to have existing issues repaired at the seller’s expense, possible reduction of your original purchase price (offer), or can simply provide you with the peace of mind to walk away from a deal gone wrong.
Personally, I always advise my clients to have a home inspection. Even with new construction, a home inspection may find issues like broken seals on new windows, faulty equipment/appliances, and other issues common with new construction. At the end of the day, regardless of how exhausting being a buyer in today’s market may be, securing a trusted advisor and personal advocate to guide you through the buying process that will keep you well-informed to possible risks related to your next real estate transaction is key to ensuring your most prized investment will continue to build equity and yield outstanding returns.
If you have questions about the buying process or would like more information on safeguards designed to protect you and your next home investment, please feel free to contact me. In the meantime, don’t get discouraged and stay positive! If you’ve lost out on a home because your offer wasn’t accepted, know that the right home is just around the corner. Let’s connect and GET MOVING!
Meet Nick, a seasoned entrepreneur with a heart rooted in the rustic charm of a Minnesota dairy farm. Those rolling fields of his upbringing didn't just cultivate crops; they sowed the seeds of his pa....