Is waiving the home inspection a mistake?
Ask Phyllis: a blog series of frequently asked real estate questions published in the Crescenta Valley Weekly.
My daughter recently purchased a home in Orange County. It’s still a seller’s market, just like the Foothill’s. Because there were multiple offers, her real estate agent suggested they waive their home inspection. The home appeared well-maintained, and she didn’t want to lose it, so she waived her inspection. After she moved in, she discovered a major problem with the air conditioning. Was her waiving the home inspection a big mistake?
Have your daughter check if she has a home protection policy. If she does, she should contact them immediately. Often buyers negotiate that the seller provides a one-year home protection policy. These policies generally cover the functional components of the home, including air conditioning.
Is waiving the home inspection a big mistake? Sometimes when a home is so outdated, a buyer will know that they need to update everything, and waiving the inspection may make sense to that buyer. In hindsight, perhaps the seller’s agent would have allowed
your daughter to have a home inspection before accepting her offer. But likely, even knowing the problem with the air conditioning would not have swayed your daughter from purchasing this home.
It’s a very competitive real estate market, and buyers are looking for any advantage. It is a significant advantage for the seller when a buyer waives their home inspection. But is it a big mistake? It could very well be why your daughter’s offer was accepted over all the others.
You don’t specify the problem with the air conditioning. But if it was something the seller was aware of, it should have been disclosed on their Transfer Disclosure Statement (TDS). By law, the seller must reveal all known defects. If there is a sticker on the unit noting who has previously worked on it, I suggest she contact that vendor to learn more. The seller is liable if the seller was aware of a problem and failed to disclose it. In this case, your daughter should have her agent reach out to the seller’s agent.
Related Post: Are pre-listing inspections important?