Did you know the buyer’s market is so intense these days that buyers are putting in some really over-the-top offers? Portland real estate agent Esty Perez recalls a bidding war where one party put in a bid over the asking price and sweetened the deal with added high-value cryptocurrency. In such a competitive market, you want to make sure you’re getting what you deserve as a buyer. That’s why a home inspection contingency is so important when you’re putting in an offer, big or small.
But what is a home inspection contingency exactly? And is it really worth the effort of adding it to your offer?
We’re here to fill you in. Keep reading below to learn why you should consider a home inspection contingency when submitting a home offer.
What Is a Home Inspection Contingency?
A home inspection contingency is a clause written into a purchase offer that allows the buyer to back out of the deal if the inspection goes poorly. Essentially, a contingent offer of any kind is one that’s dependent on the results of the specified contingency.
Benefits of a Home Inspection Contingency
A home inspection contingency allows you to evaluate any major or minor issues before you follow through with your purchase. This can be essential, especially in older homes where issues are often more prevalent.
A home inspection is often also required if you’re working with a loan provider. Most lenders won’t offer financial assistance without a completed home inspection.
A home inspection contingency also gives you a little more wiggle room to negotiate with the sellers. Once the report returns, you’ll have the chance to request repairs. For homes that have been on the market for a long time, this can be a great chance for them to make some snappy repairs and finally close the sale.
A home inspection contingency also gives you a chance to back out of the sale. After the pre-purchase home inspection has been completed, you’ll have the chance to withdraw your proposal within a certain window of time.
It will also give you more insight into what to expect when you’ve moved in. What repairs will you have to make on your own? What areas of the house can you leave alone and leave as-is?
Benefits of a Home Inspection Contingency
Buying a home is a stressful process, so to prevent any hiccups after the sale has closed, it’s important to add a home inspection contingency to your offer. With the guide above, you’ll be able to decide whether a contingent offer is right for you!
Looking for a qualified company to inspect your new home before purchase? The team at Central Florida Building Inspectors is here to help.
We offer everything from complete home inspections to thermal imaging to mold testing. Schedule an appointment with one of our state-licensed inspectors today to get started!
