Why Sellers Don’t Want You To Have A Home Inspection
June 2nd, 2018
“There’s nothing to hide” an agent told me as we spoke about the fact that her listing had multiple offers. “They’re looking for offers that aren’t contingent on an inspection”.
It wasn’t the first time I’d heard this from an agent on the other end of a deal. The real estate market in Rochester has been so hot that buyers are often forgoing an inspection just to win the deal.
When you’re buying a home it’s always a good idea to get a home inspection, but in Minnesota getting an inspection can complicate a deal.
Minnesota, unlike many states, doesn’t allow a seller the “right to remedy” an inspection issue. This ultimately means that during the inspection phase a buyer can back-out and the seller has no recourse. Because of this the sellers would always prefer their deal isn’t contingent on a home inspection.
In this hot real estate market homes are drawing multiple offers which gives the seller more leverage to control the deal. Sellers are looking for as much money as possible, but they also want a deal with favorable terms. Contingencies create additional hurdles to jump through in order for a deal to close. I definitely know of situations where a seller accepted an offer that gave them less money because the terms were more favorable.
When a deal falls through it looks bad for the seller. One problem, in my opinion, is that the days on market doesn’t reset. If a house sells in one day, pends for 15 days and gets cancelled then it’s been on the market for 16 days according to our MLS. The only way to reset the counter is to completely remove it from the MLS for 30 days.
It’s easy to see why sellers want non-contingent deals. Buyers often think the seller has something to hide when I tell them the seller wants a non-contingent deal. And maybe they do. But in most cases it’s a problem with the way Minnesota handles home inspections, not a problem with the house.