Home inspections are being waived at record rates
Inventory is down and bidding wars are up. To make their offers more competitive, buyers are making some unique decisions.1 Here’s more from a Redfin analysis:
- Of the successful offers submitted by Redfin agents in June in select major U.S. markets, 19.9% waived the home inspection contingency. This compares to 13.2% in June 2019.
- Winning offers waived the appraisal contingency at a rate of 20.6%—up from 17.4% one year earlier. As a result, those buyers must come up with cash to account for any differences between a low appraisal and the offer price.
- When these contingencies are waived, agents are seeing lower bids accepted over higher ones, as sellers are opting for the surer deal.
While these unorthodox strategies may often work, clients are still encouraged to use the protections offered by home inspections and appraisals. Please check in with me if you’d like more information.
1Lily Katz, “20% of winning home offers waived the inspection contingency in June, up from 13% last year,” Redfin, last updated July 28, 2020.