How the Current Real Estate Market is Affecting Home Inspectors
Houses are flying off the market at an incredible rate, selling within hours of being posted. Buyers are offering thousands over asking price and are waiving inspection contingencies just to get the house they want. But are these eager buyers being too risky? And how does the competitiveness of the housing market impact home inspectors?
With limited housing stock available, buyers are facing bidding wars, and many are opting to waive the home inspection contingency to make their offers stand out. While this tactic can help a buyer beat other offers, it leaves them vulnerable to deal with major structural issues on their own.
A home inspection contingency would allow the buyer to negotiate with the seller to make repairs, allow a credit toward making repairs themselves, or walk away from the sale. If someone chooses to waive the inspection contingency, they still can get an inspection done, but it would have no impact on the sale.
A home inspection allows a buyer to feel confident in the property’s condition before signing a contract to purchase. Buying a home is likely the largest investment a person will make, so it’s important to know that it’s in good shape. You wouldn’t buy a car without finding out if it has major issues, like a blown transmission, so why do the same with a house?
What Does Today’s Market Mean for Home Inspectors?
Home inspectors are extremely busy right now with houses selling so quickly, and most are booked several weeks out, though some contracts may state that a home inspection must be done within 7 days. Right now, the choice seems to be between waiving the home inspection contingency and losing the house.
Buyers are still choosing to have an inspection done, it’s just done after the fact and doesn’t affect the actual sale of the house. And with how quickly homes are selling, home inspectors are busier than ever.
Why is a Home Inspection Important?
A home inspection is important for many reasons:
- It protects the investment. If you find structural damage during your inspection that will cost several thousand dollars to repair, the buyer will likely change their mind about wanting to buy that house, or the amount they’re willing to pay.
- It uncovers unseen hazards. Home inspections are extremely thorough, revealing issues that the average person won’t notice with a quick look around, like bad wiring, unsafe HVAC systems, or structural issues.
- It’s a small upfront cost for peace of mind. A home inspection only costs a few hundred dollars, and it can save tens of thousands of dollars down the road for a major repair that could have been caught before the sale went through.
Another option that buyers have would be to include a home inspection contingency but specify the amount they would be willing to spend in repairs themselves. If repairs were to exceed that amount, then they could negotiate with the seller to cover additional costs of repairs, or the buyer can back out at that point. This would be a win for both parties, because the buyer can still have the home inspection contingency, but the seller doesn’t need to worry about being nickel and dimed over small repairs.
It can be risky for a buyer to skip a home inspection. As a professional home inspector, you will be able to uncover many unseen issues that can lead to major repairs and costs down the road. Your job is to comb the house from top to bottom, inside and out, to uncover any issues, giving the owner or potential buyer peace of mind. What you do as a home inspector is critical to the health of a home, and one of the most important steps in buying a house.
And if you’re ready to jump into a career as a home inspector, being your own boss and setting your own hours, let us know! We’d love to help you get started. You can visit www.icatraining.com for more information, or feel free to reach out at firstname.lastname@example.org or 888-374-4096.