Atmosphere of Coercion  

Every day, as I review social media, I view posts and videos stating how buyers must waive their contingencies to have their offer even looked at, never mind accepted. One agent talked about how you have 3 choices for a home inspection: ask for an inspection and the seller may not look at your offer, ask for an inspection “for informational purpose only” and the seller may not look at your offer, or not have an inspection and the seller will at least consider your offer. This post was taken down in less than a day. Another agent had a video where the headline was “How the Home Inspection is Screwing You”. 

On the news we hear reports of the same thing, the owner of one major Massachusetts RE brokerage even came on the news talking about the need to waive contingencies. Buyers are being coerced into thinking this is true. 

In this atmosphere of coercion, the truth is many buyers are working with agents that get their offer accepted while keeping their contingencies. How are they doing this? Here are some of the ways. 

1. Set higher post-inspection limits. The home inspection was never intended to have the seller fix every little condition, such as leaking faucets and replacing light bulbs, but in past buyers’ markets, these things happened. What it IS intended for is to provide the buyer with knowledge of the systems and to identify major conditions and safety hazards requiring significant repair, replacement or upgrade. New limits are being set at a low of $5,000.00 up to $20,000.00 which encompass the cost of a single system 

1. Have an inspection for informational purposes only. These inspections do not provide the buyer with the same level of protection as a home inspection with no restrictions as your deposit is still in jeopardy should you walk away; however, it may be cheaper to walk away from your deposit than to face costly structural, plumbing, electrical, HVAC and other major repairs 

1. Have a pre-offer INSPECTION. These are not always allowed n=by the seller or the seller’s agent and having one does not mean your offer will be accepted and you will be lost at the cost of the inspection. Even so, by having a complete inspection of the home before making your offer you will have a better idea of what you are willing to spend, what issues you may face after closing, and it is less expensive than facing repairs you were unaware of. 

1. Have a pre-offer CONSULTATION. First, these consultations ARE NOT home inspections and they do not provide the protection and recourse of a FULL Home Inspection. They are limited in time, typically by the seller’s agent, and are based on one hour or less. They performed as visual observations only, appliances, HVAC, and plumbing systems are not operated, electrical panels are not opened, electrical outlets are not tested, etc. Finally, the observations are reported verbally, and the buyers need to take notes. Of all of your options, this is the least desirable and provides the buyer with little to no protection 

In today’s market, with rising values, rising interest rates, and offers 5-6 figures above the asking price, it does not make sense to waive your protections.