Wave the Option Period & Inspection? Inconceivable.

Once upon a time it was inconceivable. Not so in the present brutal market. In an effort to remain competitive, many offers are being written waving the option & inspection. These scenarios came to my attention when my mom (a retired million dollar producer agent) sent a me a news article. Apparently the lack of inventories in her area are as tight as the ones in the markets I serve here in central Texas. I have been keenly aware of the inventory situation, but hadn’t heard of any waved options or inspections until I spoke with our agent about a month ago when she confirmed this.

Obviously, I have a vested interest & am going to tell you this is a bad idea. Honestly, even if I wasn’t an inspector, I would still say this is a bad idea. I would have no part in a transaction without an inspection if I were the buyer. This is likely the largest purchase a person makes. Would you buy a car without a test driving it first at the very least? The market is already inflated & through the roof. Top that off with multiple offers; even bidding wars on homes with selling prices in the tens of thousands over the listing price.

The average cost of a new HVAC system is going to start out in the $15,000 range & these systems can start to have problems at the 7 to 10 year mark. A roof replacement; $8,000 - $10,000 starting for a smaller square footage. You would definitely want to know about any foundation issues; if work was performed; warranties of work. Foundation repair can run into the thousands. How is the plumbing supply and drainage systems performing; leaks or potential leaks; blockages? Has the electrical system been modified? Were the modifications up to the prevailing standard when the work was done & and are there safety issues? A water heater replacement is going to run about $1500 per unit.

It would be heart breaking, I would think to outlay all that money for a home purchase in the present climate, only to end up with thousands more in repair costs.

I understand an offer from a buyer looks pretty sweet to the seller if there is no option period & an opportunity to inspect the property over another; especially in this volatile & competitive market. However; the law in Texas says you have a right to the home inspection. And any agent who writes such an offer or accepts a counter offer to ‘grease the skids’ for their buyer does not have their clients’ best interest in mind. It also goes against the standards we all commit to. Any seller’s agent that makes it a stipulation in the counter offer is breaking the law.

Up next as promised in an earlier blog; HVAC condensate drainage systems.

Happy home hunting!