Should I make an offer with no inspection contingency?
In entry level homes in Marin County, where the competition is red hot, we are getting this question a lot right now. And as much as we don’t like to do it, sometimes our buyers waive that contingency in order to be competitive.
However, it is only with certain conditions. Often the Seller has done critical inspections up front. If that is the case, and the inspectors are reputable, we can often get those inspectors to walk through the home for a nominal fee and take the Buyer through the inspection points. Then the Buyer can ask questions, see the issues in person, and determine if they are comfortable moving forward and waiving the inspection contingency. We are working through that scenario right now with buyers in Corte Madera.
If everyone feels comfortable at that point, then it is ok – the Buyer knows exactly what they are getting, and can make an informed decision. Often times the verbage in a report sounds worse than the actual condition, so seeing it and discussing it in person is remarkably helpful.
An offer with no inspection contingency is much more compelling as the Seller now has to only worry about financing contingencies. Here, a solid pre-approval letter from a reputable lender will provide very high odds of the deal going through.
Some buyers are even waiving the financing contingencies. In any market, we consider that extremely risky. While the odds of something not going through after a good pre-approval letter is written are very low, it does happen. We still aren’t comfortable with that one, but have done it at the Buyers direction to stay competitive when they believe it is absolutely necessary.