There's no red flag. The seller doesn't demand anything. In a hot market they simply sell to the person who waived inspection. For example, a house goes up for

There's no red flag. The seller doesn't demand anything. In a hot market they simply sell to the person who waived inspection. For example, a house goes up for sale, three people bid within three days of the listing. Two of them for $300,000 with inspection waived, one for $300,000 with inspection not waived. The bid with inspection not waived is never even considered. It would be irrational for the seller to take the risk associated with the weaker bid.