Realtors have seen some pretty insane things happening in the current real estate market… But there is
truly nothing riskier than waiving an inspection or skipping other steps vital to the integrity of a home
buying or selling transaction. Each part of the process is put into place to protect all parties involved…
and skipping over them can certainly come back to haunt a new homebuyer.
This market — where the pace of creating new inventory (new construction) is low, the rate of new
listings (resale homes) is sluggish, interest rates are historically low and rent is too darn high (due to lots
of new buyers) — has created an awful recipe for a market where homes in just about every price range
have multiple offers, most of which are above list price. And this has led to waiving inspections,
appraisals and contingencies that are designed to protect the buyer when making the biggest financial
purchase of their lives.
This imbalance between supply and demand also drives up prices and is also temporarily shutting down
inhibitions that are usually key to ensuring buyers don’t end up with a lemon.
Sellers and listing agents have become drunk with power in this situation. They are not only pushing
price but also throwing out expectations that a buyer should have no right to thoroughly investigate
what they are buying before ponying up the cash to close.
There are serious consequences of this decision. Skipping over some of these very important steps of a
typical transaction can create major drama down the road.
There are ramifications for a listing agent even if, after careful and documented advice from their real
estate agent, a buyer decides against an inspection and then discovers a costly catastrophic defect in the
home. After all, the agent did help them buy the home. If there is something terribly wrong with the
home that wasn’t inspected, sellers can also be faced with disclosure issues by accepting an offer.
The best agents will give their clients advice designed protect them at all costs. What they do with that
advice is ultimately up to the homebuyer, but the goal is to help the consumer make sound decisions
that minimize risk and maximize profit in the midst of a hot market that can sometimes cloud
everyone’s judgement.
