In competitive housing markets, when demand outstrips the supply of homes, some buyers may become anxious to secure a property. This eagerness to make a purchase after an extended search period can potentially be exploited if buyers aren’t cautious.
In their haste, some buyers might consider waiving standard rights in their contract of sale to appear more attractive to sellers. While this strategy may seem tempting in a tight market, it’s important to approach such decisions carefully.
As an experienced real estate agent, I strongly advise against using waivers as bargaining chips. These protections are designed to safeguard buyers from purchasing homes with structural issues or to provide protection in case of financial complications.
Using waivers as a negotiation tool can be risky. It might lead to buying a property that requires substantial unexpected repairs or losing your deposit if you need to withdraw from the deal.
Below, I’ve listed five waivers you must not give up as part of a negotiation. In the meantime, if I can help you buy your next property, please do not hesitate to contact me. There are some great opportunities in our neighborhood, and I’ll make sure we don’t surrender these waivers!
Home inspection
It’s critical you have a builder provide a report on the property’s structural integrity and roofing. A pest inspection is another must-have. Diligent buyers of older homes will seek inspections of the electrics and plumbing, too.
Mold remediation
It’s amazing what a coat of paint will hide. However, an inspection should uncover any mold problem. Remediating a mold problem is expensive as you’ll have to call in specialists. Mold can be the source of multiple health issues, so avoid damp and mold problems.
Your loan
Even if you have a pre-approval, that’s not a 100% guarantee the lender will come through for you. It will want to inspect the property and make sure it’s issuing a mortgage for a property that is not over-valued.
Appraisal
This waiver is linked to the lender’s assessment of the property. If it thinks the property is worth less than you have offered, it might issue a loan that reflects its estimation of value. That’ll leave you to find cash for the shortfall. In this scenario, most deals fail, which is why this waiver is so important.
Water and septic
If your home has independent systems, such as an in-ground well or tank, you need to know it’s in tip-top condition. You’ll blow tens of thousands of dollars on getting any issues fixed which is why you must have them inspected. Without a get-out clause, you’re on the hook or you’ll lose your deposit.