The collapse of trust in real estate wasn’t caused by one scandal. It’s been a slow erosion—chipped away one waived inspection, one silenced disclosure, one misled buyer at a time.
In Part 1, we looked at the systemic failures that brought us here: inflated commissions, hidden agendas, and transactional pressure. But if there is one domino that triggered real consequences for everyday people, it was the breakdown of due diligence.
The Consequence of Waiving Inspections
In 2021, 1 in 4 buyers waived the inspection contingency, according to Zillow. That was the height of the post-pandemic buying frenzy. Fast-forward to 2024, and although that number improved—dropping to 14% in some quarters—the waiver rate still climbed back to 22% by early 2025, according to NAR’s Realtor Confidence Index.
The reasons? Competitive offers. Agent pressure. A warped perception that inspections are obstacles rather than protection.
But the results of waiving due diligence aren’t hypothetical. They’re real. They’re costly. They’re life-altering
“We didn’t skip the inspection to win. We skipped it—and lost anyway.”
Case 1: The Termite Infestation
A couple in Arizona bought their dream home. Just three days after closing, they discovered an active termite infestation. Despite having multiple inspections, the issue had been concealed or overlooked. It took tens of thousands of dollars to remediate. And the emotional toll? Immeasurable.
Case 2: The Agent-Endorsed Blind Spot
One Reddit user shared that their agent urged them to waive inspection in a competitive bid. The home passed appraisal. They bought it. Within six months, mold, grading issues, and roof problems surfaced. The inspector they might have used had been dismissed as “too thorough.
Case 3: The $100,000 Lesson
In a high-value transaction, a buyer lost their $100,000 deposit due to closing day confusion and legal pressure. There had been no inspection, and post-sale findings led to regret and resentment. The agent had recommended moving forward quickly to “beat other offers.”
Seller Disclosure: The Half-Truth Trap
It wasn’t just buyers who were misled. Sellers, too, were coached into silence.
In the pandemic boom, many agents advised sellers to avoid pre-listing inspections and to disclose as little as possible. Why? Because full transparency was framed as a liability. Sellers feared scaring away buyers. Agents feared losing commissions.
But withholding known issues comes at a cost. Disclosure lawsuits are one of the leading causes of post-sale litigation. Sellers who thought they were protecting themselves may end up in court, paying for problems they didn’t fix and didn’t reveal.
> “Disclose less, close faster” was the mantra. And that mantra is now costing people everything.
When Inspectors Became Inconvenient
Inspectors, once the neutral third-party truth-tellers, became a political pawn in the deal process. Many agents began recommending only those who would “keep it light.”
> “Don’t use him—he always kills the deal.”
When inspections become a threat instead of a safeguard, the system isn’t just broken. It’s actively endangering people.
And that danger shows up in:
Surprise foundation issues
Undisclosed roof leaks
Faulty wiring and fire risks
Water intrusion and mold
The System Logic Is Backwards
Here’s the real flaw:
Inspections come in the middle of the deal.
By the time the inspector is called, the buyer is emotionally committed, the seller is mentally out the door, and the agent is already spending their commission.
If the inspection is clean: everyone wins.
If it’s not: it’s a warzone.
It creates a high-stakes, emotional, zero-sum game. Someone has to lose—or bend—for the deal to survive.
And what gets lost? Trust.
> “When inspections became a liability instead of a lighthouse, the shipwrecks multiplied.”.
The Hidden Cost: Lawsuits, Regret, and Cynicism
Every skipped inspection, every pressured disclosure, every buyer who felt tricked becomes a future cynic:
Less likely to trust the next agent
Less likely to refer friends
More likely to file lawsuits
And yet, we wonder why real estate professionals are seen as untrustworthy?
This isn’t personal. It’s systemic.
A Hint at What Comes Next
Due diligence didn’t die by accident. It was squeezed out by greed, fear, and false urgency.
But it can be resurrected not just by going back to old practices, but by redesigning the sequence, shifting the power, and bringing transparency to the start of the deal. Some agents have quietly admitted that the timing of the inspection is the real flaw. What if we changed the timing
What if inspections happened before the first showing?
What if the buyer could see the truth before the pitch?
> Because inspections aren’t the problem
They’re the only part of the process still telling the truth.