You say goodbye, I say hello …

A vintage home, a perfect summer day, and a stunning, tree-lined street surrounded by million-dollar homes. My client was so excited: “Kim, I love it, and I’m willing to waive the home inspection.”

This is how the property tour ended in Newport. What could go wrong?

There is often confusion about what it means to “waive the home inspection.” Here is a quick overview of one of the biggest decisions you can make when making a home purchase.

When you purchase a home in Rhode Island, you are entitled to a 10-day inspection period referred to as the Inspection Contingency. As a buyer, it gives you a window of time to have the property inspected by a professional to identify any potential issues, such as structural problems, electrical concerns, plumbing issues, or other defects that might not be immediately apparent. When you waive these 10 days, you not only forgo the home inspection, but you also miss out on something important — the opportunity to think.

The inspection contingency is more than just the home inspection. When you waive it, you pass on the whole 10-day period, and the chance to step away from your emotions about the purchase. You are essentially agreeing to forgo not just the inspection itself, but also the time to be objective about one of the biggest financial decisions you will make for your future.

You are deciding to accept the property “as is,” regardless of any underlying issues that may exist in the home. You are also accepting the neighborhood and surrounding area.

While the decision to waive the inspection period makes your offer more appealing to the seller, it’s a big deal! Once that contingency is gone, the seller is no longer obligated to negotiate or address any issues. Also, the seller can, and most likely will, keep your deposit if you change your mind for any reason once the inspection period is waived.

From the seller’s perspective, a waived inspection period can be a double-edged sword. On one hand, it can speed up the transaction and reduce the likelihood of the deal falling through due to inspection-related issues. On the other hand, if the buyer later discovers a significant defect and feels misled, it could lead to legal disputes or a strained relationship with the buyer.

Back to my excited Newport buyer. We did NOT waive the home inspection. We retained the right to inspect the basement and the roof for structural defects. I connected my clients with an expert who determined the basement needed about $30,000 in repairs. They looked at the big picture, worked their numbers, and purchased the house with a much better idea of what to expect. They love living in Newport!

There are certainly times when a waived inspection period can make sense, and the purchase works out perfectly. When I work with buyers, I try to find creative ways to write offers that maintain all, or some of the inspection protections, and still give buyers at least a few days to negotiate or terminate the transaction.

We are still in a very competitive market so you may be tempted to say goodbye to your home inspection – I’d like to get your offer accepted and still say, hello to your home inspection.

Engle & Volkers is a luxury real estate brand connecting clients around the world with the homes of their dreams.