In today’s hot market it seems like the day a listing hit’s it is under contract, this is especially true in Plattsburgh, NY and it’s surrounding markets.
Some buyer’s may be tempted to try and make their offer standout from the rest.
If it seems like you’re offers just aren’t getting accepted you may be tempted to resort to desperate measures. In addition to going over asking price or over promising on the closing date some buyers may agree to waive home inspections.
This is NEVER a good idea, the home may look okay to the naked eye, and your uncle who once worked a construction job for a few years may give it to go ahead, but a home inspector’s job is to find the problems that a novice may overlook. In many cases the problems that lie below the surface, or items you can’t identify as problematic cause the biggest issues.
Do you know what asbestos looks like? Do you know what interior walls to look at for a failing foundation? Do you know the most common and least checked place for a HVAC problem?
No matter how bad you want the property or how emotionally attached you are to it, don’t jump the gun, get a home inspection. If a seller does not agree to having a home inspection it is usually good to just walk away from the property. If they do not want an inspection there is a good chance they may be hiding something. Just imagine, you are a few months down the road, you’ve been paying your mortgage on time for 6 months and winter is just around the corner. You try to turn on the Boiler and all you hear is a click, no heat. Next thing you know it is $15,000.00 to replace.
When you’re in the middle of a bidding war, or you’re in your fifth month of looking at homes and think you finally found the one, that is the time to step back and take a deep breath. Don’t get caught up in the heat of the moment, waiving an inspection can cost you a lot in the long run. But there is some light at the end of the tunnel, Here are some different solutions that could help keep your offer on the table and get you a signed contract.
If you love the home, offer to make an inspection before they accept your offer or sign a contract. Absolute worst case scenario is you lose a few hundred bucks. If you found a problem now you would of also found it while you where under contract so it is a win-win.
If you do inspect the home and it passes your criteria you can waive the inspection contingency and sign the contract with good knowledge of the home’s structural integrity.
Use the Sellers Inspection
Many times a seller will have the property inspected before listing it. They do this so they can fix any problems that may arise and so buyers know exactly what they will be getting upfront. This also protects the sellers from future negotiations and allows them to properly price the home from the beginning. The only problem with the seller’s inspection is the inspector is only liable to the person who paid for and ordered the inspection. So in this case you are not liable for any recourse if a problem did arise in the future.
Move quickly in today’s market
Often there is not too many days between when offers are due and when the deal begins to move forward. Seller’s don’t want people to lose interest in the property, especially if there are multiple offers. If the market is a fast paced, like the Plattsburgh NY Real Estate Market, you need to get your offer in so quickly that there is no time to pre-inspect. A good solution to this is too schedule the inspection a day or two out from when the offer would be accepted. If you work with a good local agent, they will most likely already have a relationship with a Plattsburgh inspector who could accommodate that.
Remember, Don’t get caught up in the emotions of a bidding war, if your getting frustrated don’t forget to keep in mind the larger picture. You are embarking on purchasing the largest asset of your life. You don’t want to find yourself in a home you can’t afford to fix or even worse, a home that can’t sell because of a structural or engineering issue.
Trying to decide between a FHA or Conventional loan?
If you’re new to the housing market check out our Knowledge Center
If you are interested in the difference between a Appraisal and a home inspection watch this helpful video below
The difference between an Appraisal and Home Inspection. Do you have a question you would like to see answered on the weekly Mortgage Minute? Let us know in the comments below. Bank of England Mortgage is an equal housing lender. FDIC#418481NMLS#1282329
Posted by Bank of England Mortgage – Plattsburgh on Friday, April 21, 2017