For most home buyers, the peace of mind from a home inspection is an investment worth making. It’s common in most markets to include a home inspection contingency in the contract.
In recent years, however, a growing number of buyers in highly competitive housing markets have chosen to waive that contingency to make their offer more appealing to home sellers. The REALTORS® Confidence Index, a monthly market outlook from the National Association of REALTORS®, showed that in September, NAR members reported 21% of buyers had waived the inspection contingency, up from 18% one month earlier and up from 17% in September 2024.
A New Law in Massachusetts
Because of the prevalence of such waivers, the home inspection industry has been lobbying state legislators to look at the issue.
As part of the Massachusetts Affordable Homes Act that was signed into law in 2024, home sellers in that state are now prohibited from making an inspection waiver a condition of accepting the offer. The rule, which went into effect on Oct. 15, states that “a seller of a residential property, or their agent, shall not condition the acceptance of an offer to purchase or the execution of an agreement to sell on the prospective purchaser's agreement to waive, limit, restrict or otherwise forego a home inspection.” There are exceptions, however, like auction sales.
Although the legislation is “well-intended as a consumer protection,” says Sarah Gustafson, ABR, SRES, 2025 president of the Massachusetts Association of REALTORS®, the impact is likely to be limited. “The market was already shifting back toward offers including inspections, [and inspections] are only one term,” says Gustafson, operating principal with Keller Williams Pinnacle Central & Metrowest. “A buyer can present an attractive offer to the seller using other terms such as price, closing date, etc."
MAR has created a resource that its members can use to educate themselves and their clients on the new inspection rules. Sellers in Massachusetts are required to provide a written form stating the buyers have a right to an inspection and to allow “a reasonable period of time” during which the buyers can determine whether to proceed with the transaction if they’re not satisfied with the inspection results.
Throughout the legislative and rulemaking process, the Massachusetts Association of REALTORS® was able to advocate for changes in the rule. MAR succeeded in extending the implementation deadline and in getting flexibility for agents and their clients on the inspection and repair timeline.
Legislation Introduced in New York
In New York, a similar effort is underway. A bill introduced for the 2025–2026 legislative session would “prohibit both the sellers and the buyers of residential real properties from agreeing to sell or offering to purchase properties contingent upon the waiver, limitation, or restriction of a buyer's right to choose to obtain a home inspection.”
In May, the New York State Association of REALTORS® issued a statement in opposition to the bill, stating that the “bill has the potential to harm middle-class homebuyers with less capital and liquidity by limiting a potential competitive advantage in a tight housing market.”
NYSAR’s letter of opposition goes on to point out that the bill does not take into account the inspection process for cooperative apartments, which, by some estimates, make up as much as 75% of the apartment stock in New York City.
The New York legislation is currently held in committee. NYSAR Vice President and Chief Lobbyist Mike Kelly says that, while the association’s members recognize and consult with their buyer clients about the importance of home inspections, the decision about whether to have a home inspection remains with the buyer—and the terms of the purchase agreement are between the buyer and seller.
