Home buyers: Don't waive the inspection!
By Ron Thompson
Some homebuyers are reacting to the overheated competition for houses by waiving the home inspection. It's a bad idea.
As many of you may have heard—and those of you home shopping have quickly learned—New Hampshire’s real estate market is hot and competitive!
With some homes selling as soon as they come on the market, buyers face challenges they may not have anticipated. Some are obvious, like competing with a cash buyer when bidding on a house, or buyers offering more than the homes’ asking prices.
Another troubling trend I’m seeing in today’s market is less obvious. Some buyers are waiving a home inspection in hopes the seller will choose their offer.
A home inspection can uncover numerous issues that could affect your health and happiness in your new home.
A recent survey conducted by HomeLight, a web-based Real Estate technology firm, found that 22% of the 1,600 homebuyers surveyed said they had underestimated how much maintenance a home requires. Unlike a renter, a homeowner can’t call the landlord when the furnace breaks or the roof starts leaking.
Unless you have savings that would cover expensive home repairs, waiving an inspection is not a good idea. Buyers who waive an inspection, then encounter an unexpected issue related to the home’s condition, may not be able to afford to fix it. We’ve had a few borrowers in that situation walk away from homes they’d bought and abandon their mortgages. People in that situation not only lose any money they’ve put into the house, abandoning their mortgages may limit their ability to get loans in the future.
Welcome Home Loans now require a home inspection for the purchase of any manufactured home built before 1998. We may be able to include the price of repairs in the loan if a contractor will do the work.
Buying a home can be one of the best and most rewarding investments you’ll ever make, but don’t waive an inspection to get to the finish line faster. You’ll thank yourself later.
Ron Thompson is a Welcome Home Loans Mortgage Loan Originator at the New Hampshire Community Loan Fund. NMLS #225348.
Welcome Home Loans carry a fixed interest rate. The current rate is 8.875% (Annual Percentage Rate of 8.953% with a $100,000 loan amount, $5,000 down payment, 30-year term, no points). Your actual rate, payment, and costs could be higher. Get an official loan estimate before choosing a loan.
New Hampshire Community Loan Fund, Inc. NMLS #253893. Licensed by the New Hampshire Banking Department.