Question: My wife and I are house hunting. A friend told us that the market is hot, and there are very few house available for a large number of potential buyers. We were advised to consider including an escalator clause in any contract we present to a seller. And if there is an escalation clause, how do we deal with the amount of the loan we plan to get. It was also suggested that we decline having a home inspection. What do you think about these issues? Alvin
Answer: Maybe for the first and absolutely no for the second.
Lets look at the inspection contingency. Unless you are a professional engineer or architect, what do you know about houses? Is the electricity up to code? Does the HVAC system work? Are the joists that seem to be holding up the basement ceiling adequate (true story)? You are investing in what may be the biggest purchase of your life; don't take a chance that something -- possibly major -- will occur soon after you take title....