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I live in a sellers markets in Houston with hot houses getting multiple offers and it seems many buyers are purchasing houses as-is without an option to inspect. I have been in several situations where my offer was significantly above asking price and the Seller still accepted another offer. What am I doing wrong? Should I waive the inspection next time I place an offer?
Is it true sellers will ignore higher offers and go with offers that have no inspection contingency ?
Is it true sellers will ignore higher offers and go with offers that have no inspection contingency ?
Maybe they would if they know something is wrong with the house and don't want to deal with it. If you are comfortable dealing with whatever comes up in future go ahead. If you aren't comfortable doing that inspect the house.
Do you want to let the fervor of some local housing market control what you do or do YOU want to control what you do? If you view these homes with a knowledgeable agent they can give you some idea of the condition (but obviously not to the level of an inspector).
I have never bought a home without inspecting it. It is the most valuable thing I'll ever own, the most expensive and complex thing I'll ever buy. Most of them are "used". I'd prefer knowing as much about it as possible before handing over the money. No one who knows me would call me paranoid.
It is rare for buyers to waive inspections in my area. So while you are losing offers, are you giving appraisal guarantees? We call it gap coverage out here. What percent down are you doing? Do you have a high earnest money amount? There are all sorts of things other buyers might be doing that are more aggressive that you aren't doing while writing offers. It isn't just about price. What are you doing to guarantee an easy sale for them?
Essentially, an "As Is"(aka: "no inspection") contract says you will not come back later and attempt to re-negotiate with the seller. This is certainly a more attractive option for the seller - and if that's how houses are selling 'above' asking price in the hot Houston market, you may be forced to 'join the crowd.' Of course the problem is you may later discover significant problems/issues that could have been uncovered in an inspection. This could be particularly problematic in older homes.
Unless a buyer is paying cash or pre-approved for a mortgage, there will be a closing time-frame during which the mortgage holder would conduct an appraisal and approve the buyer's mortgage application. During that time, it would seem the buyer could certainly pay for an inspection --- perhaps, conducted at the same time as the appraisal. If there was a major issue, the mortgage lender might certainly want to know about it prior to approving the loan.
It is rare for buyers to waive inspections in my area. So while you are losing offers, are you giving appraisal guarantees? We call it gap coverage out here. What percent down are you doing? Do you have a high earnest money amount? There are all sorts of things other buyers might be doing that are more aggressive that you aren't doing while writing offers. It isn't just about price. What are you doing to guarantee an easy sale for them?
Yes actually I am also sending a notice that gives me the right to terminate if the lenders appraisal is below the offer price. Do you think that’s why sellers are declining my high offers?
I don't think *most* people should buy *most* houses without inspection, but there are exceptions. The exceptions almost always have more to do with the skill and budget of the buyer than simply how competitive the market is. Desperation to get into a place is the wrong reason. Unless you're a pretty savvy handyman or have a pretty big budget for the unexpected, that's not where I would give up my options.
I live in a sellers markets in Houston with hot houses getting multiple offers and it seems many buyers are purchasing houses as-is without an option to inspect. I have been in several situations where my offer was significantly above asking price and the Seller still accepted another offer. What am I doing wrong? Should I waive the inspection next time I place an offer?
Is it true sellers will ignore higher offers and go with offers that have no inspection contingency ?
You can buy one as is and still get an inspection. Just put a clause that it is contingent on inspection but home is sold as is. I've bought quite a few like this.
Yes actually I am also sending a notice that gives me the right to terminate if the lenders appraisal is below the offer price. Do you think that’s why sellers are declining my high offers?
Probably. Your offers have two contingencies that we know of, while other offers may have only one or none.
IMHO do not ever waive the inspection. From defective pipes to mold infested Chinese drywall - you can run into HUGE issues in houses. Now will every inspector find things? No. But they have insurance for "errors" that you can go after if they were negligent.
Don't feel pressure in a sellers market. Wait it out. It's like a car salesman who talks about "someone else is interested in the one". It's a game between the realtors, buyers and sellers. Don't be sucker.
You can buy one as is and still get an inspection. Just put a clause that it is contingent on inspection but home is sold as is. I've bought quite a few like this.
So how should I word it in the contract? “Buyer is purchasing as-is without repairs, property is contingent upon inspection” ??
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