Well folks, we are coming to the end of 2022. From a home inspection view, it was ugly. The word on the street was a vast majority where buying homes without home inspections. We find this absurd, not only because it’s our business, but for other reasons like legal, financial equity, cost of repairs and health. We feel first time home buyers are the ones most affected, most of the time they do not have the resources for any major repairs, flippers make a home look pretty but hide major defects (as we have found many times), and at the price range of they home they are purchasing, their tends to be issues.
Talking with many Realtors and clients that did have the ability for a home inspection this past year showed that many had to “skip” the inspection contingency to win a bid for a home. What drove this? How long will this continue? Let’s take a look at some issues:
- Legal: For all those involved. The seller, seller’s agent, buyer and buyer’s agent. A known hidden issue with the house could cause a lawsuit. We heard of one example that a large chimney in a home was failing and he buyers (no home inspection), after purchase realized this $60,000 issue. Now what do they do? Home inspections reduce this.
- Equity: The cost of house has risen drastically in the past year to two. Add a major repair needed and a slight drop in pricing and your home could be worth less then when you bought it.
- Repairs: As stated above, a major unknown repair comes up after purchase, do you have the appropriate funds? What if there is a Mold issues, are you talking your health into account when purchasing a home without an inspection.
It is very risky not getting a home inspected. And again we understand with the way this market is, you may need to do drastic things to acquire a home. You will need to personally way the risk. The continuation of 20 plus offers on a home, bidding over asking, and no inspection is not sustainable and not good for the market. Although, sellers may be happy getting more for their home, they are just spending more on another home or new construction. There are no winners, besides the Realtors making more money on the sale.
The good news, is 2023 appears to be slowly coming back to “normal”. It appears, homes prices are leveling off, homes are sitting on the market slightly longer, people are not being as aggressive in purchasing a home. This is opening up the home inspection contingency again on offer to purchases. This will give more buyers a peace of mind when purchasing a home.
Well, that was my thought for today. Please have a safe and enjoyable holiday season!