rookie: Inspection contingency, help?!

[Emmanuel Ivory]

Hi BP,

So my brother and I are buying our first home in Sacramento with intention of house hacking. We are speaking with the seller who wants to sell the house as-is, which I understand but the seller also wants us to waive inspection.

As a first time home buyer and someone who has spent months saving money for a down deposit, I am afraid of pulling out and loosing earnest money.

We do have a Pest report estimated repairs of $10,000. Seller offering $4k credit at closing and home renovated with a great deal.

Am I overreacting? Please any advice would help.

[Leonard Brown]

@Emmanuel Ivory Hi Emmanuel, I agree with @Chris Pasternak. From the details you’ve provided, it appears the seller is trying to offload a problem property. Take it from me, if a pest inspection yields a $10k remediation, there is almost always a larger issue at hand. Think roof, plumbing, foundation, and grading.

I just did an inspection for one of my clients who was in the market for another investment property. The seller intentionally attempted to cover up the extent of the termite damage to sell the home rather than solve the problem. Termites had eaten through the floor joist AND subflooring. This seller didn’t request inspections to be waived but did nail up plywood to cover the damage to the subfloor.

Short story even shorter, be cautious.