For the past couple of years, just like back in 2006 & 2007, home buyers are waiving their right to have a home inspection.
Home sales have been on fire and in most cases selling for way more than the listing price. Early in 2021 a home on the Cape was listed at $600,000 and sold for $900,000. Early 2022 in Topsfield, MA, a home listed for $760,000, sold for $942,000. Home inspections were likely waived at both of these sales.
Inspection requests have been down about 80% from normal so far in early 2022 because real estate agents are advising buyers to waive the inspection so that their offer stands a better chance of being accepted. The disturbing part is that these are mostly “buyers” agents giving out this advice. These agents claim they are working in the best interest of their home buying client by getting their buyer to waive the inspection because having an inspection will jeopardize the deal.
Well, those home buyers back in 2006 & 2007 overpaid for those houses and some of them who had to sell in 2009 & 2010, took a double beating. One, the market values crashed after their purchases in 2006 & 2007. Two, the potential buyers for their homes in 2009 & 2010 were having home inspections and finding issues further eroding the selling price.
I’m pretty sure history is repeating itself.
Update: November 2022, the market is cooling and some homes have been re-priced (lowered). Fewer homes are selling over the list price and those that do are only slightly above the list price. No more crowds to be found at open houses. Hopefully, potential home buyers will have the opportunity once again be able to have their potential new home inspected before and not after the purchase.