Sellers in Delaware’s real estate market could receive offers from motivated buyers who wish to forgo inspections. According to the National Association of Realtors, 25% of homebuyers waived inspection contingencies during May 2021.
Real estate investors often use cash rather than rely on residential mortgages. Many investors also generate income by taking risks. They may waive property inspections in exchange for faster transactions.
Buyers dependent on mortgages may not have an option to forgo inspections
Potential homeowners relying on traditional mortgages usually cannot waive inspections. Before most banks approve a home loan, the property must go through an inspection and appraisal process.
The outcome of an inspection helps determine the home’s appraised value. During the procedure, an inspector examines a property for its structural soundness, safety and sanitation. If conditions do not meet minimum standards, a buyer may not obtain a bank’s final approval for a mortgage.
Inspectors could discover issues that sellers missed
A thorough property inspection conducted by a professional could protect buyers and sellers against possible surprises. As reported by CNBC Grow.acorns.com, 85% of buyers surveyed fixed one or more unforeseen problems after moving in.
Some typical problems found after the sale included roofing, electrical and drainage issues. Mold and insects also required unexpected treatment. On average, more than $7,000 went into repairs that buyers did not know about. One out of three respondents admitted they would not have made the purchase if they had discovered the problems sooner.
Under the Delaware Code, residential real estate sellers must disclose material defects in writing. A disclosure form may include deed restrictions, environmental hazards and plumbing issues. If buyers insist on forgoing inspections, a contract may include clauses outlining sold “as is” conditions.