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Cost of waiving home inspections

Homebuyers are going to great lengths to win bidding wars. Experts warn that it could cost them big in the future.

MOUNTAIN TOP, Pa. — Justin Weber says he's never seen anything like it before.

"It's really going to be putting people in a bad position. I think in a couple of years, when they find out, you know, what's really in their house."

Weber owns Mountain to Valley Home Inspections, based in Mountain Top. The service he provides is one many homebuyers are doing without these days.

Realtor Christopher Madden says it's out of desperation.

"A lot of people, you notice changes in their personality as they lose bidding wars one after another. Many people have bid on, I believe the average is nine houses, before they get one in this market."

To make their offer more attractive to a seller, buyers are forgoing home inspections.

While that might get you the house, it also gets you all the unseen problems that might come with it.

"You look at different components of a home such as a roof, the septic, the foundation, that can be very expensive to fix. And if there's no inspection contingency, then you're kind of stuck with whatever you get," Weber says.

And those costly repairs will hurt even more if you're already stretched thin. Madden says a lot of people are going beyond their means and overpaying for homes.

"It's usually one of the biggest investments people making their entire life and you don't want to just win the house; you want a house that's safe, that isn't going to bankrupt you, that is good structurally. Don't deviate from that."

Weber worries we're going to see a lot of buyers' remorse in the coming months, even years.

"We're already starting to see some of that, you know, with articles that are coming out, and new stories of people that have waived the inspections that are kind of going in blind, and then they're getting hit with these really large bills. Hopefully, it'll break loose soon, but as for right now, that's kind of the market that we're in."

But there are signs the market could cool down soon. Mortgage rates hit the highest level since 2009 this week.

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