For many home buyers, the housing market has never been more competitive. Across the country, the construction industry has not been producing enough homes to meet demand of both everyday home buyers and real estate investors. To further complicate matters, Millennials who have advanced in their careers enough to afford to buy a house, have also entered the housing market.
In this highly competitive environment, shoppers are more willing to make concessions for the sellers. Increasingly buyers are turning to cash offers, making offers over the asking price and doubling or even tripling the down payment, all as a means of making their offer more attractive.
As buyers vie for a limited supply of houses, many of them are making a concession that normally would be unthinkable. They’re assuring home sellers they won’t pursue any needed repairs recommended by a home inspector and waiving the home inspection altogether.
You don’t have to be a real estate expert to know that waiving a home inspection can have serious consequences. The house in question might have structural issues, safety hazards such as faulty wiring, health related concerns like lead paint or asbestos, or damage from pests such as termites or beetles.
Fortunately, in situations where the competition is high and time is pressing, there is a happy medium. Many home inspectors offer a limited inspection that covers only the main components of the home.
At Beacon Home Inspection we offer what we call a 5 Point Inspection. In a 5 Point Inspection we inspect the roof, the foundation (including crawl space), the main electrical panel, the heating and cooling system and the water heater.
While 5 Point inspections are not comprehensive in nature, they will provide an insight as to the working condition of the most expensive and complicated systems in the house. The status of these components can often serve as an indicator as to the state of the rest of the house. Have they been well cared for? Are there signs of regular maintenance or were they ignored over the years? In many cases, homeowners that properly maintain and service their mechanical systems also have a tendency to take care of less serious issues around the house; anything from minor plumbing leaks to keeping the gutters clean.