In the seller's market of late, many buyers have resorted to submitting firm offers (those with no conditions) when competing on properties, so that they are more appealing to (and more likely chosen by) the seller. Unfortunately, one of the biggest risks of this is giving up the right to a formal home inspection before firming up the deal. For one thing, they don't truly know in great detail what they are buying, which may include hidden deficiencies. For another, they aren't able to request that the seller complete any repairs - or compensate for the cost of repairs in the form of a price reduction - as part of firming up the deal. Finally, they aren't able to walk away from the deal like they would have been able to in a conditional ('contingent') situation.
Ideally, a seller could have an inspection done prior to listing a property. This allows them to know upfront what issues might exist, gives them a chance to resolve them (if willing), and of course provides valuable information to potential buyers upfront so they can feel more comfortable making a firm offer.
If the seller doesn't provide an inspection and a buyer still decides to take on the risk, it doesn't mean ditching the opportunity to do a home inspection altogether. It still makes sense to put a clause in the agreement that allows the buyer a visit for an 'informational' inspection sometime before closing. There is no recourse against the seller for any deficiencies found (and this should be clearly stated in the clause), but it still provides benefits to the buyer. It reduces the chance that the buyer encounters unexpected problems only upon moving in. Thus, they at least have some advance notice of what they will need to deal with, giving them the ability to make plans with their finances and their timeline. Perhaps this could mean scheduling repairs or services to occur as soon as they take possession before even moving in. Even aside from the serious, pressing issues, the inspector can include in the report any recommendations for smaller fixes or updates that aren't first priority but that would be smart to address over time. Finally, both the property walk-through with commentary from the inspector, and the written inspection report, will provide the buyer with in-depth information on all aspects of the specific home. This is especially valuable for first-time homebuyers needing a thorough understanding of the maintenance/workings of a home, and for buyers that just aren't familiar with features they haven't had in prior homes (depending on age, geographic location, optional upgrades, etc).
As a final thought, I urge buyers to consider how valuable this information is (for usually only a few hundred dollars) and to remember how much business has been lost to many inspectors due to the firm offer frenzy. Include (at least) an informational inspection in any agreement and it's a win-win. ~ Laura
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