I’m in the process of buying a home in Washington and my agent says she’s never had a client waive the inspection contingency unless they’re buying a cheap fixer-upper to flip.
Edit: Also, the expectation was auto-escalating offers, eBay style. The owner set a date to take offers and picked the best one.
In the last 15 years I've purchased in both Toronto and in rural Ontario with the full set of conditions; financing, inspection, etc. As a buyer I simply won't do it otherwise. We have a 6 acre hobby farm near Hamilton.
But I also just don't bother to go look at properties with language in the text like "Accepting offers on...". We won't play the multiple offers game. In Toronto maybe this is the only way to get a home, but we were able to avoid it there back in 2005 by just hunting in areas that weren't "cool."
My experience is there's always almost other places that come up, where the seller has more scruples.
We might sell our hobby farm soon. I would fully expect any potential buyer to demand inspection.
Aside from the stress of weekly rushes to view, inspect, bid, and bid-up, the process primarily compressed the entire process into a short period of time. The biggest inefficiency was that essentially all buyers were forced to become journeyman experts at the compressed-time process.
It seems like it is healthiest for homes to be on the market for about two weeks. Part of the trouble with short-duration listings is that it is a high-stakes version of the optimal-stopping problem. I think a little more holistic visibility into the market's offerings might yield better matches between buyers and homes.
Choosing an abode for the next few decades amidst weekly auto-escalation bidding wars just doesn't seem healthy for the future dwellers.
A good example of the kind of change I’m talking about is development in 100-year flood plains in Houston[0]. 30 years ago, a naive home buyer would not have had to worry about it, because flood plains were off limits. What changed? Greedy developers? Ignorant planners? More population? Perhaps all of it. But now you have to be educated to make the right call.
[0] https://www.houstonchronicle.com/news/houston-texas/houston/...
Using Houston as an example, 50 to 100 years ago it was the norm to bring in fill dirt from other regions, flatten and grade a piece of land, and construct a gridded residential neighborhood with total disregard for natural drainage. Flooding was dealt with by artificially channelizing bayous and streams, which is why Houston's urban waterways look so unnatural. Many of these older neighborhoods along the gulf coast were unsustainable and are not being rebuilt after hurricanes.
Starting around 30 years ago, local, state and federal policymakers started to get a clue. Neighborhoods were more commonly build to accomodate the drainage patterns -- this is why developments from the 1990's, 2000's tend to have large retention ponds, (example: https://www.google.com/maps/@29.5517845,-95.4295706,3a,75y,2... )
while neighborhoods from the 1950's-60's do not.
As I understand it, in competitive urban markets it has become common for sellers to do a pre-inspection and then sell / provide that info for interested parties. This potentially makes for a faster sale and may create a more competitive situation if more potential buyers see less risk in the condition of the house and are willing to make an offer. But, at least in my state, anything a seller learns about the condition of their home must be disclosed so this could also backfire.
Any time you can remove a contingency in a competitive situation it will be a potential advantage, but caveat emptor all day long - sellers seldom have a complete understanding of their home and property so it is to the buyer's best interest to do everything they can to inform themselves before completing the purchase.
Economists define the natural interest rate as "the interest rate that supports the economy at full employment/maximum output while keeping inflation constant"[wikipedia]
For the last decade we've seen very little time at full employment and absolutely no accelerating inflation by any standard measure. So by any textbook definition of a natural interest rate we've been keeping interest rates too high.
Agreed interest rates are at an all time low. At the same time, the supply of loans is at an all time high, thanks to new (old) mechanisms like loan securitization being thoroughly commoditized.
Discuss - why shouldn't the price of loans (interest rates) be subject to the laws of supply and demand just like everything else?
They should be. It doesn't work though when the Fed comes along and buys the lion's share of loans.
A $1,000 1 yr bond is a promise to a $1,000 in 1 year. If you'd pay $500 for it than the interest rate is 100%. If you bid it up to $750 than interest rates drop to 33%.
If the Fed comes along and buys loans from the Banking system it increases the supply of loans... (banks are restricted by Basel Capital regulation in the supply of loans they can provide, otherwise too much liability money creation.)
If they buy loans from anybody else - since the Fed creates money to do so (by virtue of also being a bank), they again potentially increase the supply of loans, if the lenders then relend the money.
And the total quantity of debt goes up, its price goes down, and everybody wonders why.
Most inspections are "pay us <stupid_number> to point out the obvious and we don't include <list of anything that requires more than just walking around the house eyeballing things to determine> and our liability limited to <price of inspection>". It's no surprise people wave them.
I researched my own inspector and chose a very technical retired engineer. He identified significant issues with the home that resulted in the price being reduced by 15%. You're an idiot if you waive inspections.
I've never needed to call anyone else so I just assumed they were all like this.
The article says waiving of inspection is out of control and going up, but nowhere near "most".
Of course your local market is probably completely different than the entire US overall.