Minimize Your Risk

The risk you take by telling clients to waive inspection on a home

On Behalf of | Jun 30, 2021 | Real Estate Law |

Remote workers prioritizing affordable housing over popular neighborhoods and a general lack of inventory have led to a very competitive real estate market. Most sellers expect to see offers within a few days of listing. They also probably expect to sell their house for more than the listing price.

Currently, receiving multiple offers on the same property in a matter of hours is a common outcome for new listings. Buyers have become increasingly creative in how they make their offers seem more competitive. Some buyers write letters to appeal to the sellers, while others try to offer terms that seem more attractive.

As a real estate professional, you want to help your buyers find a property, but you also need to protect their interests. Telling them to waive the inspections on the property could be a decision that comes back to haunt you.

Buyers are dependent on your advice and expertise

The current real estate market prompts people to make aggressive offers and move quickly on a decision that truly requires careful consideration. It is easy for someone to overextend themselves when trying to be competitive on the modern market.

For example, they might make an offer that represents the absolute maximum amount they can finance. They could decline all inspections to assure the seller that they will proceed with the closing no matter what happens. Buyers may feel comfortable waiving inspections if you tell them it is a good idea. Having an offer not contingent on passing inspection can be tempting for sellers.

Unfortunately, they may assume that your real estate training would make it easy for you to spot even latent defects. In other words, buyers might jump to the conclusion that if you agree that waiving the inspection is a good idea that you don’t think there’s a possibility of any serious issues with the property. If the buyers later discover that the foundation has started to sink, they might try to hold you accountable by blaming you or making a claim against your errors and omission insurance.

Be smart in how you help your buyers stand out in this market

It only takes one or two botched transactions to seriously damage your reputation as a real estate professional.

You want to be a passionate advocate for your clients and guide them to properties that fit their needs. Helping buyers be competitive can get them to the closing table, but you also want to make sure that they don’t wind up saddled with buyer’s remorse.

Being pragmatic and patient in your approach can help you support your clients as they hunt for a home in this aggressive market.