Buyers offering to waive inspections

SIOUX FALLS, SD (KELO) – Over the past two years, the real estate industry in Sioux Falls and much of the country has seen more buyers than homes available for sale.

It meant a busy season for many real estate agents, but market pressure is causing a major drop in a key part of the home buying process: home inspections.

“Your water heater is a bit old, probably about to be replaced,” said Brian Shabino of National Home Inspections.

It’s been a standard step in the home buying process for years.

“If you go back two years, I would say about 95% of people had home inspections,” said Tony Bachman, realtor at Coldwell Banker Tony Bachman Group.

But right now, the approximately 25 members of the Sioux Empire Home Inspectors are seeing a significant drop in activity.

“We all pulled out our numbers, we see we have a 20 to 50 percent drop from previous years in the number of inspections we do,” Shabino said.

This is because more and more buyers are trying everything they can to make their offer stand out.

“If you have five offers in front of you and they’re all similarly priced, and one of them says okay, we’re not going to do an inspection…the sellers are going to say, let’s go with the one that has no inspection,” Bachman said.

But it’s a tactic that carries a big risk.

“Customers have called us and told us the gory story they passed on during the inspection and now they have thousands of dollars worth of repairs,” Shabino said.

A typical walkthrough of a potential home reveals what’s on the surface, but a home inspection allows a professional to examine every inch of the property in detail.

“We’re going to go up on the roof, look at the shingles, the flashings on the roof,” Shabino said.

“We’ll go into the attic, tell you if your bats are in the attic, we’ll look at your foundation inside and out, we’ll look at major electrical, mechanical components, your furnace, heater water, air conditioner, we will run all your appliances to make sure they are working properly. »

This is all designed to give buyers a better idea of ​​what to expect if they move in.

“As part of the biggest investment you’re going to make, you kind of need to know how many more thousands of dollars I’m going to spend next year, replacing a water heater, replacing a furnace. We try to give you all the information you need to make the right decision,” Shabino said.

To stay competitive while enjoying some protection, buyers are finding creative ways to conduct an inspection, whether it’s a post-purchase inspection or a basic inspection, but home inspection professionals realtors say that a complete inspection done before the closing of the sale is really the solution. best way to protect your investment.

Comments are closed.