Thursday, December 15, 2016

Thinking About Waiving Inspection?

by Osman Parvez
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The Boulder area market has very little inventory, so it's not uncommon for buyers to find themselves in a bidding war - especially on a fresh listing.  In some, it makes sense to scale back the inspection contingency to increase the competitiveness of the offer. 

When you think about waiving inspection, just remember this photo. 




This is what a 1950's cast iron drain line looks like when it fails.  The normal failure mode is to rust from the inside.  Boulder is filled with drain lines that look just like this. 

In most cases, if my buyer is considering waiving inspection, I recommend a partial "pass/fail" type inspection instead. It allows a buyer to determine the health of the envelope and main system of the house while sending a signal to the seller that the buyer is serious. It assures the seller that there will be no second round of negotiation over trivial inspection problems, but still reserves the buyer's right to exit the contract and get their earnest money back if a deal killer is found. 

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

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