During the frenzy of 2021 through 2023, waiving the inspection became one of the most common ways buyers tried to stand out. Homes drew a dozen offers, and dropping contingencies felt like the price of admission. That pressure hasn’t fully gone away, and it’s still one of the questions I get asked most by buyers across Sioux Falls, Harrisburg, and Tea.

Here’s the short version: waiving your inspection is one of the riskiest moves you can make in a home purchase, and in today’s market you almost never have to.

Let me walk you through what you’d actually be giving up, what an inspection costs, and how to compete without gambling on a house you’ve never had a professional look at.

What “waiving the inspection” actually means

There’s an important distinction most buyers miss, so let’s clear it up first.

Waiving the inspection contingency is not the same as skipping the inspection. You can still hire an inspector to walk the home — you just give up your contractual right to renegotiate or walk away based on what they find.

When you keep the inspection contingency, you get two things:

  • Leverage. If the inspector finds a cracked heat exchanger or a failing sewer line, you can ask the seller to repair it, credit you money, or drop the price.
  • An exit. If the problems are worse than you can stomach, you can cancel the contract and get your earnest money back.

Waive that contingency, and both disappear. You can still learn about the problems — you just can’t do anything about them except accept the house as-is or lose your deposit walking away. In South Dakota, your earnest money is held in the listing brokerage’s trust account, and once you’re outside your contingencies, it’s exposed. If you want the full picture on that, I broke it down in my guide on how much earnest money you need in Sioux Falls.

One more thing buyers lean on that they shouldn’t: the seller’s disclosure. South Dakota requires most sellers to complete a Seller’s Property Condition Disclosure Statement under SDCL 43-4-44. That’s useful, but it only covers what the seller actually knows about. It’s not a substitute for a trained inspector crawling the attic and testing the systems. Plenty of real problems have never crossed the seller’s radar.

What a Sioux Falls home inspection costs — and what it catches

An inspection is cheap insurance. Here’s what you’ll typically pay in the Sioux Falls area, based on square footage:

  • Under 2,000 sq ft: $280 to $400
  • 2,000 to 4,000 sq ft: $400 to $510
  • Over 4,000 sq ft: $510 to $650

For that money, a licensed inspector goes through the roof, foundation, structure, HVAC, plumbing, electrical, water heater, and drainage — the systems that quietly drain your savings when they fail. A single furnace or AC replacement runs $6,000 to $12,000. A sewer line repair can run higher. Set that against a $400 inspection, and the math makes itself.

Two Sioux Falls-specific issues deserve their own line items.

Radon. Minnehaha and Lincoln counties both sit in EPA Radon Zone 1, the highest-risk category, and local averages run well above the EPA’s 4.0 action level. A radon test adds roughly $150 to $250, and it’s cheaper bundled with the inspection than ordered separately. If you’re weighing whether it’s worth it, I covered the full case in my post on radon testing for Sioux Falls homes.

Older homes and newer builds both need eyes on them. In established areas like McKennan Park, older West Sioux Falls, and parts of Brandon, you’re often buying character along with aging furnaces, older wiring, and settling foundations. On the new-construction side in Tea and Harrisburg, buyers assume a brand-new home is flawless — it isn’t. Punch-list items, drainage grading, and passive radon systems that need an active fan upgrade all show up on inspections of new builds. If you’re comparing the two, my breakdown of new construction versus resale in Sioux Falls goes deeper.

When waiving makes sense — and when it’s a mistake

I won’t tell you never to waive, because there are narrow situations where it’s a calculated risk. But they’re narrow.

Waiving might be defensible when:

  • You’re a cash buyer or investor who can absorb surprise repairs without blinking.
  • The home is brand-new construction still under builder warranty, and you’re at least doing a pre-drywall or final walkthrough.
  • You’ve had an inspector walk the property before writing the offer, so you’re waiving with full knowledge, not blind.

Waiving is a mistake when:

  • It’s your primary residence and your savings can’t cover a five-figure surprise.
  • The home is older or has visible deferred maintenance.
  • You’re doing it purely out of panic because you lost the last two houses.

That last one matters, because the market has shifted. Sioux Falls in 2026 is far more balanced than it was two years ago. Inventory has climbed, mortgage rates have settled around 6.8%, and homes are averaging roughly 40 days on the market instead of selling in a weekend. Buyers have more room to negotiate — which means the pressure to strip contingencies just to be competitive has eased. Patience and a disciplined offer win more often than a reckless one.

How to compete without going in blind

If you’re in a multiple-offer situation and want your bid to stand out, there are stronger levers than waiving your inspection:

  • Shorten the inspection window instead of eliminating it. Offer to complete your inspection and repair requests in five days instead of the typical seven to ten. You keep your protection; the seller gets speed.
  • Ask only for major, safety, or structural repairs. Signal up front that you won’t nickel-and-dime over a loose doorknob. Sellers fear the death-by-a-thousand-cuts buyer, not the reasonable one.
  • Strengthen the parts of your offer that cost the seller nothing extra — a larger earnest deposit, a flexible closing date, or a rent-back if they need time to move.
  • Get fully underwritten pre-approval, not just a pre-qualification letter. A clean, ready-to-close buyer often beats a slightly higher offer that looks shaky.

You can look strong without exposing yourself to a house you’ve never had inspected. That’s the balance I help my clients strike on every competitive offer, and it’s usually the difference between winning smart and winning into a money pit.

Frequently Asked Questions

Is a home inspection required to buy a house in South Dakota?

No, South Dakota doesn’t legally require a home inspection. It’s your choice as the buyer. But your lender may require certain conditions to be met, and skipping the inspection entirely means you’re buying with no independent look at the home’s condition.

How long is the inspection contingency period in Sioux Falls?

Most South Dakota purchase contracts give buyers about 7 to 10 days after acceptance to complete the inspection and submit repair requests. Sellers then typically have 3 to 7 days to respond. Miss your deadline and you lose your leverage, so mark the date and work backward from it.

Can I still get my earnest money back if I waive the inspection?

If you waive the inspection contingency, you give up the right to cancel over inspection findings and keep your deposit. You may still have other contingencies — financing, appraisal, and title — that protect your earnest money, but inspection-related problems would no longer be a covered reason to walk away.

Does the seller’s disclosure replace a home inspection?

No. The South Dakota Seller’s Property Condition Disclosure Statement (SDCL 43-4-44) only covers defects the seller actually knows about. An inspector finds problems the seller may have no idea exist, which is exactly why the disclosure and the inspection do different jobs.

Should I inspect a brand-new construction home in Tea or Harrisburg?

Yes. New homes still have defects — drainage and grading issues, incomplete punch-list work, and passive radon systems that may need an active fan after testing. A new build under warranty is lower-risk, but an inspection gives you a documented list to hand the builder before you close.

The bottom line

Waiving the home inspection can make your offer look stronger for a day, and cost you tens of thousands over the years you own the house. In a Sioux Falls market that’s finally handed some leverage back to buyers, that’s a trade you rarely need to make. A $400 inspection and a well-structured offer will almost always serve you better than going in blind.

If you’re weighing whether to keep or drop your inspection on a specific home, that’s exactly the kind of call I walk my clients through before we ever write the offer. Reach out anytime at 605-201-2846, and let’s make sure your offer is strong and smart.

About Jeff Merrill
Jeff Merrill leads The Jeff Merrill Team, powered by eXp Realty, serving Sioux Falls and the surrounding South Dakota communities of Madison, Mitchell, Canistota, and beyond. He helps motivated buyers, sellers, and new agents cut through the hype in real estate with honest guidance, hands-on mentorship, and a track record of real results. Connect with Jeff at siouxfallsgreathomes.wordpress.com or call 605-201-2846.