A high demand for homes leads to potential risks for buyers
WAUSAU, Wis. (WSAW) - There’s a high demand for homes in the market, leading potential buyers to skip an important step in the home buying process; a home inspection.
The rush to get an offer accepted by the seller is causing the process to be skipped. With the high demand for homes, some sellers are using this to their advantage.
“This market is crazy,” Central Wisconsin Home Inspector, Dan Obermann said. “We don’t have an equilibrium. We’ve got ten times more buyers than sellers right now.”
Some sellers are not even allowing some buyers to get a home inspection before the offer closes. Sellers are more attracted and willing to accept offers that don’t have a home inspection contingency, Obermann said.
Taking a gamble on a house without an inspection means walking in blind. Something most people wouldn’t do when buying a used car.
“They’re buying the house as is. [The buyer] is taking the word of the owner of the house,” Obermann said.
The risks of buying blind can lead to extra expenses people didn’t budget for. Those risks even changed the mind of a mortgage lender.
“Over the past few years as I have seen things home inspectors have found, I really have changed my attitude about home inspections in the last ten years, and saying they are really a good thing and really worth the money,” Vice President of People’s State Bank, Todd Schultz said.
A house inspection can offer ways to save money in the short and long-run.
“You’re going to save yourself a lot of money by paying that $400 upfront because you’re going to save a few thousand dollars on something the home inspector is going to find,” Schultz said.
Most banks in Wisconsin don’t require a home inspection.
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