Should You Ever Buy a Home Without an Inspection?

The quick answer? No.

To call today's housing market "tricky" would be a glaring understatement. That's because housing inventory is so limited that it's making it possible for sellers to get away with charging sky-high prices for their homes. 

A lack of inventory is also putting buyers in a desperate position where they're forced to make compromises. That could mean settling for a smaller home, an older home, or a more expensive home that comes with higher monthly mortgage payments. 

In fact, sellers have been struggling so much to purchase homes that many are going the extra mile to get their offers accepted. For some, that means offering to pay in cash. For others, it means waiving home inspections. But the latter is a move you shouldn't even begin to entertain -- even if you're really eager to become a homeowner.

Why you need to have that inspection done

Normally, a home inspection is a standard part of the closing process. During an inspection, an outside professional comes in and examines the home you're looking to buy from top to bottom. The inspector will then identify issues with the home, if applicable, that you should know about before you move forward with your purchase.

Usually, when issues are found during a home inspection, buyers give sellers one of two options. The first is to fix those issues before completing the sale of the home. The second is to take money off of the home's purchase price -- enough to cover the issue at hand.

In today's real estate market, however, buyers are increasingly offering to forgo home inspections in an effort to get sellers to accept their offers. But that could end up being one of the most expensive mistakes you ever make.

Imagine you're already stretching your budget to purchase a home at today's prices, and you also agree to waive an inspection. What if you move into that home and discover an issue that will cost you $50,000 to fix? At that point, you could land in a serious financial lurch. 

Plus, some issues could really pose a health hazard. Imagine you're looking at a home whose electrical work isn't up to code. That's not a home you should want to live in. Or, perhaps the home you're looking to buy has a mold infestation that's difficult to spot on your own, but that an inspection uncovers. Would you really want to sleep in a home that could end up making you ill?

Use other tactics

Tempting as it may be to waive your home inspection in today's tight housing market, it's a dangerous move you really shouldn't even consider. Instead, try other tactics to get a seller to work with you. 

One option is to come in with a mortgage pre-approval letter. That shows the seller you're a serious buyer whose finances have already been examined. 

You can also try making an offer above a seller's asking price from the start. Say a home you're in love with is listed for $500,000. If you offer $520,000, your seller might be pleased enough with that offer that they say yes right away. And while $20,000 extra might seem like a lot more money to spend on a home, it could pale in comparison to the amount you end up having to spend if you pass up a home inspection and uncover a costly issue shortly after you move in.