Dian Hymer has a good article in Inman News today that encourages buyers to insist on inspections and appraisals even in hot markets.

“In areas where demand for listings is high and inventory is low, buyers will compete not only on price but also on terms. The winner is often the buyer who offers the highest price, the quickest close and the fewest contingencies. A contingency protects buyers if they need to satisfy a condition – like arranging financing – for the sale to go through.”

“Some buyers waive their right to inspect the property in order to be competitive. This is risky because you could end up paying far more than the purchase price if the property needs a lot of work. If you buy without an inspection contingency, be sure to have inspections done before you make an offer. Otherwise, you could end up short of cash if you find out after closing that a big-ticket item, such as the roof, needs to be replaced.”

I don’t allow pre-offer inspections on my listings, as it encourages multiple buyers to spend the $500 inspection fee when only one of them can actually be the final purchaser. Instead, I would encourage a buyer to keep their contingencies SHORT and do their inspections and appraisal in two or three days. This takes the pressure off of the seller to risk losing their momentum on the sale while still offering everyone in the transaction the liability protection of giving the buyer a chance to do their due dilligence.

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