Last month a buyer I was working with almost waived their inspection on a 1940s bungalow in North Park, right off 30th Street. The seller's agent hinted that competing offers were coming in clean, no contingencies. My buyer panicked and wanted to do the same.
I talked them out of it. And when we got the inspection report back, there was $22,000 worth of foundation and plumbing work hiding under that cute Craftsman exterior.
Here's the mistake I see first-time buyers make constantly: they treat the inspection contingency like it's disposable. Like it's just a bargaining chip you toss away to look more attractive. I get why. San Diego is competitive. You lose a couple offers and you start thinking, "What else can I give up?"
But the inspection isn't leverage. It's protection.
A lot of older neighborhoods in San Diego (North Park, South Park, Normal Heights, parts of Hillcrest) have homes built in the 1920s through the 1950s. Beautiful curb appeal. Original hardwood. Character for days. They also have galvanized pipes, outdated electrical panels, and drainage issues that don't show up on a walkthrough. You're not buying a condo in a 2019 build. You're buying something with history, and history comes with hidden costs.
I'll be direct: I think agents who encourage first-time buyers to waive inspections are doing them a disservice. There are other ways to make an offer competitive. Flexible closing timelines. Larger earnest money deposits. A well-written cover letter from your agent to theirs. Dropping the inspection shouldn't be the first move. It should be the last resort, and even then, I'd push back.
If you're worried about losing a deal because you want an inspection, consider this. You can shorten the inspection period to five or seven days instead of the standard ten. You can agree to a "pass or fail" inspection, meaning you'll only back out for major structural or safety issues, not cosmetic stuff. Those compromises show the seller you're serious without leaving yourself exposed.
The house on 30th Street? My buyers renegotiated $15,000 off the price after that inspection report. They closed two weeks later.
That wouldn't have happened if they'd waived it.