Do I Really Need An Inspection?

[Igor]

To flip it around,  in today's market why would a seller choose to sell to a buyer demanding an inspection when he has multiple offers from buyers not demanding one? The buyer looking for a seller willing to make the sale dependent on an inspection may ultimately find one but how much did prices increase while he was looking? Where I live many properties are going up $25K a month or more. Tough and possibly money foolish to make demands in this market in my opinion.

Would you buy a used car without having it looked over by a mechanic? I, maybe more than many on this thread, understand the present market conditions. If  seller demands the waiver of an inspection to sign the contract, you should be asking yourself "why?".

In your opinion, where do you see mortgage rates and house prices going in the next 6-12 months?

Only an opinion. I'm not a financial advisor. Both are going up. Property values won't be going up as fast as they have been as fewer look for new homes and the inventory increases. But unlike 2008, the inventory/supply is still far below the demand. The Fed has announced three rises in interest rates, the first coming next month. Although mortgage rates are more closely tied to the ten year bond, the bond rate normally follows the Fed lending rate.

Thanks.  I have two friends that are looking for houses, and both are just discouraged by the market today.  They are hoping that it returns to a more normal pace, whatever "normal" is any more.

[Cougartail]

Buying a house without an inspection is like marrying a woman without dating her. Can ruin your life!

A high end house I know of was sold then had to be torn down because of mold. Lawsuits were everywhere in that deal.

[Forks]

I've been doing lots of pre offer inspections for clients the last year or so. Every home and situation is different but I fully understand waiving when you've lost out on multiple previous offers. My opinion is atleast have a competent person look in the attic and crawlspace....this is where the hidden gems show up. It's definitely "take out the trash" time for sellers as they can dump homes fully knowing buyers have zero leverage and the disclosure form is easy to get around. I agree that rates will rise as will prices with supply low. So many fools with pure cash are moving to our region.

[Mudman]

Inspections will put ya out of the dealing...  Bring a inspector or friend or builder/craftsmen with you on your own.  People expect their old used house to be perfect with no flaws?  Really?  Buy a new house then.  I dont expect a 20 used work truck  to be in perfect shape.  Do you?  It is crazy market but that is ending now.  Before this year is done market will be changed.  Wait a year to buy.  Housing market is crashing now.  It takes time and will be a slow death.  Rates will be 2% higher by 2023.  Biden is still pres.  Markets a mess.  War looming.  Shortages coming again.  Building materials remain very high.  Truckers are striking/convoy.   It is a mess brewing.   NO way I would BUY home now.  I hope you all do so my business remains strong but its so risky now.        In summary used houses are NOT remodeled show homes but some seem to expect that.   Be smart and inspect on your own or bring a tradesmen to check out so ya dont push yourself out of the deal.   I did it myself on my home and had an inspector.  He did well enough but I was way beyond his skills and knowledge to be honest.  Finance was happy and I was out $400.  Im rambling but be careful, be smart and be patient.

[buggy]

Great topic Pianoman.

I recommend that any home buyer should get an inspection. I have represented a few buyers who waived their inspection (mostly investor types who know what they're getting into) but i always have a long conversation about what they're risking especially when dealing with more inexperienced buyers. Sometimes you're better off not getting the house!

On the other hand, when representing a seller its hard to ignore an offer without an inspection contingency. The important thing here is making sure that the seller disclosure is filled out perfectly/honestly because that will be the first place the buyer looks when they realize the house has issues. Seller disclosures are the leading source of lawsuits in real estate transactions. As a seller I would hesitate to say anything that might discourage or prohibit an inspection. It would be difficult to argue your innocence when you didn't allow the buyer a chance to verify the disclosure that you filled out.

The vast majority of transactions involve an inspection and its really not a big deal when handled by reasonable adults.

I guess the point of all my rambling is, make sure you understand what your decisions really mean and what the possible consequences are. 

[Jingles]

There are lenders mortgage companies loan guarantees that require an inspection. I.e. VA requires an inspection, at least they did when I used them for 3 different purchases.

[buggy]

There are lenders mortgage companies loan guarantees that require an inspection. I.e. VA requires an inspection, at least they did when I used them for 3 different purchases.

I haven't worked with a lender who requires an inspection in quite a while. Maybe some still do???

I believe VA,FHA,USDA loans require the appraiser to poke their head in the crawlspace and attic but i wouldn't consider this a home inspection.

Correct me if this isn't 100 percent correct pianoman.

[Alchase]

My VA loan in 2015 here in OK required an inspection.

[pianoman9701]

My VA loan in 2015 here in OK required an inspection.

All VA purchase loans require an appraisal by a VA certified appraiser. The appraiser is qualified to spot certain things, like infestations, structure problems, etc., or know about common problems in the area that may affect the prospective home. They can then order an inspection if needed. This is for the protection of the veteran borrower.