By Barry Stone
Dear Barry,
In my area, properties sell as fast as they are listed. Sellers receive multiple offers at full price or above, with no contingencies for repairs or upgrades. In this competitive market, many buyers are passing up home inspections just to get an accepted offer. With this pressure to secure a deal, how thorough and complete a home inspection should a buyer expect to have without blowing the deal? -- Dave
Dear Dave,
"Feeding frenzy" real estate markets occur periodically with rising levels of economic excitement. When these cyclical urgencies encourage buyers to throw caution to the wind, the likelihood of adverse financial consequences is significantly increased. Regardless of perceived imperatives, the rush to buy, "condition-be-damned," is an invitation to monetary disaster and resultant grief. In short, it is gambling, as opposed to investing.
When purchasing commodities as costly as real estate, a full knowledge of what you are buying is indispensable, regardless of economic activity. In hot or cold markets, the kinds of problems likely to be discovered by a competent home inspector are the same. Turning a blind eye to these unseen conditions could saddle you with thousands of dollars in unexpected repairs or with conditions that could affect future resale of the property, when the buying momentum has diminished. Additionally, there are the potential consequences of undisclosed safety violations.
Competing offers from other buyers may prevent you from making repair demands on the sellers, but they shouldn't prevent your becoming fully informed before committing your hard earned dollars. Regardless of the real estate climate, it is essential to know what you are buying before you buy it. It's a simple matter of allowing prudence, not emotion, to direct your investment decisions.
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