After the Home Inspection
After the home inspection, several possible scenarios may unfold depending on the findings of the inspection and the terms outlined in the purchase agreement.
1. Reviewing the Inspection Report: The home inspector will provide a detailed report outlining their findings, including any issues or concerns discovered during the inspection. Both the buyer and seller will review this report to understand the condition of the property.
2. Negotiation: If significant issues are identified in the inspection report, the buyer may choose to negotiate with the seller to address these concerns. This could involve requesting repairs, credits, or a reduction in the purchase price to compensate for the necessary fixes.
3. Requesting Repairs or Credits: Based on the inspection findings, the buyer may submit a formal request to the seller asking for specific repairs to be completed before the sale closes or requesting a credit to cover the cost of repairs.
4. Waiving Contingencies: Depending on the terms of the purchase agreement, the buyer may have a specified period of time, known as the contingency period, to conduct inspections and negotiate repairs.
5. Further Inspections or Assessments: In some cases, the inspection report may uncover issues that require further evaluation by specialized professionals,.
6. Terminating the Contract: If the inspection reveals significant issues that the buyer is unwilling to accept or if negotiations with the seller fail to reach a satisfactory resolution, the buyer may choose to terminate the contract.
Home Inspection Contingency : Importance, Clauses & Addendums
A home inspection contingency is a clause included in a real estate contract that allows the buyer to hire a professional home inspector to evaluate the condition of the property before finalizing the purchase. This contingency typically specifies a certain period of time, often around 7-10 days, during which the buyer can conduct inspections and negotiate repairs or credits with the seller based on the inspection findings. If significant issues are discovered during the inspection that the buyer is unwilling to accept or address, they may have the option to withdraw from the contract without penalty, or negotiate with the seller for repairs, credits, or a reduction in the purchase price.
Geeky Takeaways:
- The home inspection contingency provides buyers with a crucial opportunity to assess the condition of the property before committing to the purchase.
- If significant issues are uncovered during the inspection, buyers can use the findings as leverage to negotiate with the seller.
- Typically, the home inspection contingency comes with a specified time frame, often around 7-10 days.
Table of Content
- Importance of Home Inspection Contingency
- What a Home Inspection Covers?
- Exterior Inspection
- Interior Inspection
- Not Covered in a Home Inspection
- After the Home Inspection
- Is Home Inspections Worth the Investment?
- How and When to Waive the Inspection Contingency?
- Conclusion
- Home Inspection Contingency – FAQs
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