In periods of excited housing markets often called a “Sellers Market”, buyers may be tempted to provide an “Unconditional Offer” in order to be more appealing to the seller and differentiate their offer from other competing buyers. The purchase of a home is one of the largest and most important financial decisions a family can make. It is also often a very emotional transaction. In Sellers Markets the buyer is often under time constraints/pressures that influences the buyer to act quickly.
These factors may pressure a buyer to violate one of the cardinal rules of negotiations – “When negotiating a deal, a party should attempt to obtain as much information as possible in order to make an informed decision.” Buyers who forego a home inspection to provide an unconditional offer are purposely not making an informed decision and are accepting all risks (and associated costs) for the repair of any major conditions affecting the home. Depending on the item, these costs can run into the tens of thousands of dollars. There are lots of horror stories of out there of buyers suffering major “buyer’s remorse” and costs of an unconditional offer.
An alternative is to arrange for a home inspection prior to submitting the unconditional offer. It may take a couple of days longer to provide the offer, but most realtors and sellers will often be prepared to wait especially if there is a high probability that they will be receiving another competitive offer. Protect yourself and your investment by obtaining a home inspection in order that you may make that informed decision.