Home buyers skipping inspections as market keeps hot
SIOUX FALLS, S.D. (Dakota News Now) - The hot housing market in the Sioux Falls area is driving buyers to compete fiercely against each other. That also means some are skipping on an important step in the process, to try and get an edge.
With a limited inventory of houses in and around Sioux Falls, buyers need to be in the know with their agents on the most competitive way to purchase their home.
“Educating them on how the process works, and what they’re up against. Where there will be the road blocks that they’re going to have, and what they need to adjust their expectations for in order to get to that finish line. Which is the closing table.” said Amy Stockberger, Broker and Owner of Amy Stockberger Real Estate.
Stockberger said her business has seen that competition ramp up to many skipping on home inspections, as a way to sweeten the deal for sellers.
“A lot of times what we’ve seen in the last 24 months, is that buyers have been removing that home inspection contingency to make their offer be less risky,” said Stockberger. “There are ways around that though, because that home inspection contingency does have a lot of weight for the buyer. Because that’s the money your spending to make sure you’re not getting into a money pit.”
But skipping on that step during the sale or entirely can have consequences. Brian Shabino, the owner of National Property Inspections said a full home inspection is much more thorough that some might think.
“We’re going to be getting up on your roof. We’re going to be crawling in that attic. We’re going to be inspecting the furnace, water heaters, things that typically a buyer is not going to notice when they’re coming into a home.” said Shabino.
He said even those home owners who skipped the inspection at first are soon to call after the purchase.
“We have had clients call us after they have purchased the home, a little alarmed on what they have actually walked into. Now that they’ve got into their home, and they’ve started living, and they ask us, ‘Can you come in and do an inspection now?’” said Shabino.
Stockberger said some may skip the inspection because they believe it will only cost more overall to get their home, and scare away sellers to offers without the contingency. But she said it’s an important step in making a sound purchase, and won’t ultimately won’t affect the sale purchase much.
“They’re going to find some things. That’s just part of home ownership,” said Stockberger. “We’re very clear with our buyers that it’s not a point of renegotiation. A homeownership does have some items that will need to be fixed. But that’s the luxury.”
Shabino said even if buyers skip the inspection before purchase, there’s always time to do it after to give them a full rundown of their new home.
“We can always come back in, and do that inspection once they’ve already purchased the house.” said Shabino.
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