To Inspect or Not to Inspect, That is the Question…

For what seems like forever, buying a home and getting an inspection went hand-in-hand. But, with crazy market conditions and buyers nearly desperate for housing, some buyers are choosing alternatives to a traditional home inspection.

Buyer Options for a Home Inspection

In Indiana, when you buy a home, you have three inspection options on the state’s purchase agreement.

Option 1: Waive inspections. The buyer is relying on their own examination of the property. They feel confident in what they are buying or their ability to fix anything they might encounter.

Option 2: Traditional inspection with the right to back out of the contract with no penalties under certain conditions. The buyer can also request that the seller make repairs.

Option 3: As-is. This means the buyer has the right to have inspections and can get out of the deal within a certain window of time with no penalties but can’t ask the seller to fix anything.

As market conditions escalated, more and more buyers were choosing to make as-is offers. They wanted the peace of mind that an inspection affords but wanted to stay competitive by letting the seller know they weren’t going to ask for any repair items.

Some buyer agents believe the as-is option favors the buyer and choose to reserve the right to inspections but cap the total on repair amounts ($1500, for instance) to make their client’s offer more appealing.

Pre-Listing Inspections

Some sellers chose to get ahead of the crazy by offering a pre-listing inspection. This allows them to share their inspection report with potential buyers, oftentimes avoiding the inspection period altogether.

Local inspectors found that their inspection appointments dropped by as much as 80% during the height of the market. This provided a great opportunity to pivot, and a few local inspectors were offering “showing inspections,” where they’d accompany the buyer and agent on the showing. This afforded the buyer peace of mind before writing an offer with “waived” inspections (because the inspection happened during the showing). Many inspectors are now back to an almost full schedule.

So, what’s the right approach? That’s totally dependent on the buyer’s comfort level with the property they’re purchasing. It’s also dependent on the competition, if any, for the home they’re purchasing. Here’s where a local, knowledgeable agent is invaluable in guiding you to make the right decision for your offer.