To waive inspection or not?

[Joshua Van Every]

Hey guys,

Yesterday I put my first offer in on a beautifully remodeled flip. Everything from the electrical, plumbing, roof, interior and exterior was brand new. I’m in Milwaukee and it was located in West Milwaukee/Southside area. My initial plan was to invest into multi-family units. But after evaluation and getting numbers back on expenses vs income, I’d cash flow about $500 on 5 bdr 2 bath.

My realtor said the offer we put in was very strong and gave the option to waive the inspection saying he had previously seen this happen on a property that was fairly new as well. However, I wasn’t comfortable taking the risk of waiving the inspection contingency and out of the 12 offers, we lost. My realtor was confident we would’ve won if I would’ve waived it but understood my concern. Someone suggested having a “basement expert” come in for a small cost and give the green light or to hold off and we didn’t find one in time.

Is this something common to waive inspection on properties that are in bid wars? If so, is there something I can do to analyze better myself? It seems like a crap shoot. Any experience or advice would be helpful!