Homebuyers in New York are increasingly waiving home inspections, raising concerns about property safety and buyer protection. According to the National Association of Realtors, nearly 25% of buyers opted to forgo these crucial inspections in 2024. Industry experts are now advocating for legislative changes to bolster protections for buyers in the state.
New York law mandates that sellers disclose certain information about their properties, and it allows potential buyers to request inspections from licensed professionals. However, the law does not prevent sellers from rejecting offers that are contingent on inspection. “The problem is, if you don’t have access to home inspection and you’re relying on property condition disclosures, you don’t have much protection,” stated Larry Ames, secretary and board director of the New York State Association of Home Inspectors. He highlighted that sellers often provide vague responses, leaving buyers exposed to significant risks.
The COVID-19 pandemic has transformed the housing market, creating a seller’s market characterized by limited inventory. Buyers, in their eagerness to secure homes, are now more likely to waive inspection contingencies to enhance their offers. Ames elaborated, “What’s changed is the resulting sellers market, with a very limited supply of houses, creating a situation where buyers may have been encouraged to waive a home inspection contingency.” In many cases, buyers are also submitting offers that exceed the asking price by 20% to 30%, placing themselves under financial strain.
The implications of bypassing home inspections can be severe. Without a thorough assessment, buyers risk encountering major repair issues after purchase, which can lead to disputes with insurance companies. “I’ve seen cases where the inspector came out and said, ‘Yeah, you need a new roof, a front porch, new electric service,’” Ames noted. The costs of such repairs can reach tens of thousands of dollars, leaving families in precarious situations without necessary financial resources.
To address these growing concerns, Ames and the New York State Association of Home Inspectors are advocating for state legislation that would strengthen homebuyers’ rights to inspections. Currently, Massachusetts has enacted a law to protect buyers in similar circumstances, prompting renewed efforts in New York.
State Senator Rachel May has introduced a bill for the 2025-2026 legislative session that would prohibit both sellers and buyers from agreeing to waive or restrict inspection contingencies. “I think it’s a necessary and an obvious step,” May emphasized. “The legislature has done that to support home buyers, and they’ve created the home inspection profession to support home buyers.” She underscored the importance of ensuring that buyers have access to professional evaluations to make informed decisions.
As the New York legislature prepares to reconvene in January, the future of this bill remains uncertain. Nonetheless, the ongoing dialogue about buyer protection is essential in a market that continues to evolve rapidly. The outcome could have significant implications for homebuyers and the overall integrity of the real estate market in New York.
