Eager Charlotte buyers: Don’t skip the home inspection, experts say
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Housing in Charlotte
A closer look at the real estate market, affordability and advice for buyers.
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In a market as hot as Charlotte’s, the competition is fierce to get your offer to the top of the list.
The most recent monthly report from Canopy Realtor Association showed there were only 2,427 homes in May available for sale in the Charlotte metro area, a 10-county region across North and South Carolina. In that month homes sold in 16 days, on average.
That means lots of people losing out on offers.
But in the rush to put an offer at the top of a seller’s list, real estate agents and inspectors who spoke to the Charlotte Observer recently warned against taking shortcuts on the inspections.
While it’s still not the norm, real estate agent Mike Hege of Pridemore Properties said he’s seen buyers drastically cut down the due diligence period, including all the way down to same-day.
A due diligence period, agreed upon by both parties, determines how much time the buyer has to complete structural inspections, as well as others for radon or termites. That time period is bought with a due diligence fee from the buyer, which is nonrefundable if they back out of the contract.
“I would never advise any of our clients to waive their due diligence period for any house,” Hege said. “We are seeing that (period) compressed a bit. It used to be last year, we would see three to four weeks. These days, you’re lucky to get two to three weeks.”
The inspection calculation looks a little different over the border in South Carolina, where many contracts include an inspection contingency that the prospective buyer could be tempted to waive in an attempt to submit a competitive offer.
Jonathan Osman, a broker and owner of Tryon Realty Partners, said that’s not advisable either.
“That’s really ill-advised,” he said. “They may have some some kind of cruddy wiring some place or leaky plumbing. It may be small potatoes and no big deal, or you can find several thousand dollars worth of a problem that you’re buying.”
While most lenders require a property appraisal before closing on a mortgage, it varies whether lenders require buyers to complete a home inspection.
‘You certainly want to know’
Preston Sandlin, owner of Home Inspection Carolina, said with the market so firmly in the seller’s favor, buyers know they may not be able to negotiate any repairs before the sale. He still recommends an inspection so buyers go in with open eyes.
“You certainly want to know what you’re getting into,” he said. “Russian Roulette is never a good idea ... And that’s kind of what you’re doing if you’re skipping the inspection.”
In response to the booming market, Sandlin said his company has begun offering what he calls a “walk-through consultation” while a prospective buyer is touring.
It doesn’t replace an official inspection, Sandlin said, and he makes sure agents know his team is looking for some “major red-flag” structural issues but isn’t doing in-depth checks on air conditioning, plumbing, or other more time-consuming elements.
But, he said, it’s some peace of mind before a buyer commits to a potentially large (and non-refundable) due diligence payment after an offer is accepted.
Buying a home as-is could lead to a host of costly repairs down the line, he said, including issues with the foundation, termite damage or mold.
This story was originally published July 12, 2021 at 10:59 AM.
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