Thinking About Waiving an Inspection? Here’s Why Experts Warn Against It

Did you know you’re not actually required to get a home inspection? Some buyers even choose to skip it entirely. That move—called waiving the right to inspect—is often used in competitive bidding situations to make an offer stand out without raising the price.

But with rates hitting historic highs and inventory at rock-bottom levels, buyers are pushing harder than ever and making aggressive offers just to win a house.

Recently, more buyers have been skipping their home inspections altogether — and in many markets, sellers now expect it. But industry experts warn this trend is putting countless new homeowners at serious financial risk.

In this post, we’re breaking down the key questions buyers ask about home inspections, including:

• Why inspections matter?
• How an appraisal differs from an inspection?
• What you’re really risking when you sign a waiver?

If buying a home without an inspection has even crossed your mind, read this first. It could be the difference between a smart purchase and a costly mistake.

What a Home Inspection Is Actually For

A home inspection is meant to give buyers and investors a clear picture of any repairs, code issues, or hidden problems within a property. The goal is simple: avoid purchasing a “lemon” that becomes a financial drain after closing.

Savvy investors even use inspection reports to estimate repair budgets and plan future costs.

That’s why most buyers see the inspection fee as a small upfront investment that protects them from potentially losing tens—or even hundreds—of thousands of dollars down the line.

Home Appraisal vs. Home Inspection: What’s the Real Difference?

It’s common to mix up a home inspection with a home appraisal, but while both are important, they serve completely different purposes—and understanding that difference is essential.

A home inspection is an optional service paid for by the buyer to make sure they’re not unknowingly purchasing a property with major issues. An independent inspector evaluates the home’s visible and functional systems—plumbing, electrical, structure, and more—to identify potential problems.

An appraisal, on the other hand, is required by lenders when a buyer is financing a home. Its purpose is to determine the property’s market value so the bank can be confident it’s making a sound loan.

Like inspections, appraisals are performed by a neutral third party. But unlike inspections, the lender will issue a mortgage only based on the appraised value—not the agreed-upon purchase price.

Key point: an appraisal cannot replace the protection a home inspection provides.

The Most Common Reasons Buyers Skip the Inspection Contingency

Even though a home inspection is one of the smartest financial steps a buyer can take, many still choose to skip it.

Why?

The most common reasons buyers choose to waive a home inspection contingency include:

1. Using it as a strategy to make their offer more appealing in a bidding war or tight market
2. Not fully understanding what a home inspection covers or how valuable it truly is
3. Being an investor or developer who already knows how to identify and price out repairs

Remember, there are plenty of other ways to strengthen your offer in a competitive market—such as offering cash, giving sellers flexibility on closing, or tailoring terms to meet their specific needs.

How Risky Is Waiving a Home Inspection Contingency?

Skipping it doesn’t just put your wallet at risk—buying a problem property can create real safety concerns too.

Our most recent national home inspection report, released in June 2021, revealed just how critical inspections really are. Across 50,000 homes surveyed, inspectors identified more than one million total repairs, with the average home needing roughly $10,000 in fixes. Additional highlights included:

• Nearly half of all homes didn’t have a working smoke alarm
• Over one-third were missing GFCI protection, creating a major electrocution risk in areas exposed to moisture
• Almost half showed drywall cracking, a possible sign of foundation issues
• Repair costs ranged from minor fixes under $100 to major problems exceeding $10,000

These aren’t small cosmetic concerns—they’re significant issues that impact both a home’s value and the safety of the people living in it.

Even If You Waived the Inspection Contingency, You Can Still Schedule an Inspection

The good news is that in many states, even if you’ve waived your home inspection contingency, you can still hire an inspector afterward at your own expense. And in states where inspections aren’t allowed during the transaction once the contingency is waived, savvy buyers are choosing to schedule an inspection immediately after closing.

In some situations, buyers also use post-closing inspections to uncover issues a seller may have withheld or misrepresented in their disclosures. So waiving the contingency doesn’t mean you can’t—or shouldn’t—get an inspection later. If any of the concerns we discussed today are on your mind, getting one done can offer valuable clarity, protect your safety, and give you real peace of mind.

Final Thoughts

A professional home inspection is essentially a risk assessment—one that can heavily influence the outcome of one of the largest financial decisions you’ll ever make.

Most inspections uncover only minor issues, but without understanding the true cost of those repairs, it’s nearly impossible to know whether you’re paying a fair price for the home. That’s where we can help. If you’d like a clear estimate of what it will take to address the items in your inspection report, you can learn more about our inspection repair estimates here.

Before you waive such an important contingency just to strengthen an offer, take a step back and look at your options.

In most cases, it simply isn’t necessary—and it’s rarely worth the risk.