Understanding the Home Inspection Contingency in Real Estate Transactions
In this blog post we are going to break down home inspections into THREE topics which include: What is a home inspection contingency, what’s expected in an inspection, and how are repairs negotiated during the inspection contingency.
What Is A Home Inspection Contingency?
With the COVID buyer frenzy behind us, we’re seeing a more normal buyer market which means we’re seeing consistent home inspections contingencies again! But what exactly is this contingency? It means after you and a seller agree on a contract, you have the option to inspect the home to ensure it’s going to work for you. And, if during that inspection timeframe, you determine it does not, you can walk away with your earnest money refundable to you and move on to the next house! But, you will be out the money you paid for that inspection (if you paid a private inspector which is most likely).
What’s Normal In An Inspection?
As part of your inspection, a home inspector will provide you with a full list and condition of nearly all the different systems and components of a home. From foundation to framing, electrical, plumbing, HVAC, the home inspector will try to find everything they can to give you an analysis of the home’s condition. It can feel overwhelming if you’re a new homeowner but know we’ve got your back.
How To Negotiate Repairs As A Buyer
Now, let’s say you’re under contract to purchase a home with an inspection contingency. You, with the help of your agent, will determine whether or not to ask for repairs to be made or credits to be applied. This is where working with an agent not only strong in negotiation matters, but one who actually understands the costs and fixes. It’s not uncommon to see contracts fall apart during an inspection, so make sure you pick a realtor that can educate you if a home’s condition is worth its price within a specific neighborhood.
Remember, you as the buyer will be paying for the home inspection(s). The pricing will vary depending on which type of add-ons you are interested in including in your home inspection. We have some great referrals when it comes to third-party inspection companies and we are happy to connect you with them! Our goal is to help you with this part of the home-buying process to make sure you feel comfortable with one of your biggest purchases!
