While there isn't one single "inventor" of the idea, the trend of waiving home inspections was born out of extreme market desperation and has evolved through several "waves" in real estate history.
It is widely considered by professionals, including Good Eye Home Inspections team, to be one of the most dangerous financial risks a buyer can take & the dumbest unless you are very experienced in homes/remodeling which most people are not.
1. The Origins: The "Investor" Play
Long before it hit the mainstream, waiving inspections was a tactic used almost exclusively by institutional investors and "flippers." * The Logic: These buyers have massive cash reserves and their own construction crews. They aren't looking for a "move-in ready" home; they are looking for a shell. They factor the cost of a new roof or foundation into their offer, making a "clean" offer without contingencies more attractive to a seller.
2. The Turning Point: The 2020 Pandemic Frenzy
The move from "niche investor tactic" to "mainstream trend" happened during the COVID-19 housing boom.
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Supply vs. Demand: Housing inventory hit historic lows while demand skyrocketed. Buyers were routinely competing against 15–20 other offers.
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The "Nuclear Option": To win, buyers (often pushed by aggressive agents) began removing every possible hurdle for the seller. By April 2021, data from the National Association of Realtors (NAR) showed that 25% of all buyers were waiving their inspection contingency—a number that peaked near 30% in 2022.
3. Who "Pushed" the Idea?
While the market conditions created the fire, several groups fueled it:
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Aggressive Real Estate Agents: In a "highest and best" bidding war, some agents advised clients that an inspection was a "deal-killer." This allowed for faster commissions and a higher "win rate" for the agent, but shifted 100% of the structural risk to the buyer.
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The "I-Buyer" Algorithms: Companies like Zillow and OpenDoor popularized the idea of "instant offers" that bypassed traditional due diligence, further normalizing the skipping of professional assessments.
Why It's the "Dumbest Thing You Can Do"
As you noted, waiving an inspection is a massive gamble. Here is what you lose when you waive:
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The "Exit Ramp": An inspection contingency is your legal way to walk away with your earnest money if a $20,000 foundation issue is found.
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Negotiation Leverage: You lose the ability to ask for a "repair credit" to cover things like a 25-year-old furnace or a leaking roof.
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Insurance Eligibility: Many insurance companies in 2026 require an inspection or 4-point report to even issue a policy. If you buy the home and find it's uninsurable due to old wiring, you could be in default of your mortgage immediately.
The "Smart" Alternative: The Informational Inspection
If you are in a competitive market like Dayton or Cincinnati, many experts recommend waiving the "Right to Remedy" but NOT the "Right to Inspect."
This means you tell the seller: "I won't ask you to fix anything, but I still want an inspection. If the house has a major structural failure, I still reserve the right to walk away."
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