Home Inspection Contingency | Why You Should Have One
Home inspections aren’t always necessary when purchasing a home. However, they are essential for finding any underlying and potentially costly issues that a home-buyer may face in the near future. It’s highly recommended that home-buyers protect themselves in their real estate contracts with an inspection contingency. This will allow them the option to make changes to the contract after a professional home inspector reports his or her findings.
What is an inspection contingency?
Also known as a “due diligence contingency,” an inspection contingency gives a home-buyer the right to have an inspection on the home. Usually the inspection must occur within 3-7 days of going under contract. It protects the home-buyer from incurring a home that needs costly repairs that couldn’t be seen without the trained eye of a home inspector.
After an inspection, buyers have the ability to cancel their contract on the home. They can also negotiate with the sellers about repairs based on their inspection report. Home inspections typically involve the evaluation of the property’s physical components. These include: electrical, plumbing, structural and HVAC conditions. Within about 36 hours, the report will detail any issues, what their significance is and suggestions for how to repair them.
What are the buyer’s options after the inspection report?
Buyers now have the report they need to make an informed decision about their contract. They can:
- Make no changes and simply move forward with the closing on their home
- Back out of the contract and request a refund of earnest money
- Ask for additional time for further inspection
- Request that the seller make repairs or ask for a concession to cover the costs of repairs. If the seller agrees, they’ll move forward with closing on the home. If the seller doesn’t agree, the home-buyers can back out of the contract and request a refund of their earnest money.
In the event you’ve chosen to have an inspection contingency in your real estate contract, your next step will be to search for a reliable home inspections company. Beryl provides licensed and certified home inspectors who surpass InterNACHI’s Standards of Practice and provide flexible scheduling for a timely inspection. Contact Beryl today to learn more.