Why Skipping the Home Inspection Could Cost You

In a recent article, the National Association of REALTORS® (NAR) explores a growing trend: more homebuyers are choosing to waive inspection contingencies to make their offers more competitive.

 In such highly competitive markets, skipping a home inspection can seem like a shortcut — but it’s raising eyebrows among state regulators and real-estate professionals alike.

What’s Happening

According to NAR, about 21% of buyers in September waived the inspection contingency—up from 18% one month earlier and up from 17% a year earlier. States such as Massachusetts have already responded by banning sellers from conditioning acceptance of an offer on the buyer waiving inspection. A similar bill is being introduced in New York.

Why Home Inspection Matters for Buyers & Sellers

For buyers, waiving an inspection can seem appealing in a bidding war: fewer contingencies, cleaner offer. But the downside is clear: you’re giving up a critical opportunity to uncover defects — issues that might cost thousands to repair (roof, foundation, mold, etc.).

For sellers, an inspection waiver may make your offer look stronger. But if major problems surface later, there may be renegotiation, repair demands or even legal liability.

From a market perspective, the surge in waivers suggests heat, but state reaction indicates concerns about fairness, transparency and consumer protection.

Practical Tips

• Buyers: Even if you’re in a hurry to close, insist on a home inspection or at least a limited version. The risk of hidden defects is real and sometimes costly.

• Sellers: Consider having an inspection pre-listing. That gives you the chance to fix problems and market the home as “inspected and repaired”—which can actually put your offer in a stronger position.

• Agents & Brokers: Make sure your contracts clearly explain the risks of waiving inspections and the legal implications. As national and state rules evolve, transparency is increasingly important.

• Market watchers: Keep an eye on whether legislative action creeps into your state. If new laws make inspection waivers harder or illegal, the market strategy will shift.

The Bottom Line

Skipping a home inspection may win you a bidding edge, but it also exposes both buyer and seller to greater risk. The data from NAR shows more buyers are taking short-cuts—but states are responding. Whether you’re buying or selling, your best move is an informed one.