What’s The Biggest Reason To Make Your Offer Contingent On A Professional Home Inspection?

What’s The Biggest Reason To Make Your Offer Contingent On A Professional Home Inspection

Do you want to learn the biggest reason to make an offer contingent on a home inspection?

As a home inspector, I have seen so many house problems and defects it would make your head spin. I have seen structural problems, roof leaks, entire plumbing system defects, and much more.

You may also want to read my guide on the 16 key questions to ask during a home inspection so you can get the most out of it.

In this guide, I will go over…

  • My top reason to get a home inspection contingency
  • Using the inspection contingency on an ‘as is’ purchase
  • And a template of actual home inspection contingency language
Table Of Contents

Why Make Offer Contingent On Home Inspection?

The most important reason to have a home inspection contingency in your offer is to ensure that you can walk away from the home and get your deposit back if you find a large defect.

If you didn’t have a home inspection contingency, you may be able to walk away based on an undisclosed repair (hopefully not get sued), but you definitely won’t get your deposit back.

And don’t forget that with any defect, the seller has the option first to fix the issue before you are allowed to back out of the contract. The seller may also offer to lower the purchase price instead of fixing the repair which will be up to you to accept or reject.

If you are still looking for a qualified home inspector, I invite you to try out my contractor search tool. It will get you free quotes from trusted home inspectors who have been pre-vetted and who are in your local area.

Read Also: How To Do A Home Mold Inspection?

Defective HVAC System Example

Let’s say the home inspection shows that the HVAC system is 25-years old, broken, and it’s leaking refrigerant. The refrigerant is outdated R-22 which is very costly (currently defunct & banned from production) and the HVAC contractor recommends to install a new system.

You may also be interested in reading my guide on things that fail a home inspection so you can prepare for potential repair negotiations.

Well, now the seller has the option of installing a new HVAC system, giving a discount off of the purchase price — or you can walk away from the purchase and get your deposit back.

If you didn’t have a home inspection contingency, it doesn’t matter if the HVAC system breaks, you will still be obligated to go ahead with the purchase or lose your deposit.

What Does Contingent On Home Inspection Mean?

Being contingent on a home inspection means that there is language in the purchase contract called a clause that states the buyer is allowed to get a home inspection as a condition of the purchase.

The buyer is allowed to get a home inspection within a certain period of time, and provide a list of requested repairs to the seller.

The seller is free to either perform the requested repairs or to reject it. If the seller rejects the repair request, then the buyer is able to back out of the contract without penalty and get their deposit back.

You may also be able to renegotiate the purchase such as the sales price based on the results of a home inspection.

Read Also: What Are 10 Home Inspection Tips For Sellers?

Can A Home Purchase Be Contingent On An Inspection When Being Sold “As Is”?

Yes, the purchase can be contingent on a home inspection even if the home is sold ‘as is’. The only difference is that your only right is to cancel the contract — not request repairs.

The whole point of an ‘as is’ condition of the sale is that the seller doesn’t warranty the condition of the property, and that are unable or unwilling to do repairs. In this situation, if you find that the repairs or more than you can handle or desire — you can cancel the contract and get your deposit back.

If you are still looking for a qualified home inspector, I invite you to try out my contractor search tool. It will get you free quotes from trusted home inspectors who have been pre-vetted and who are in your local area.

Read Also: How To Do A Home Inspection For Foundations?

What is the biggest reason to make your offer contingent on a professional home inspection?
Home Inspection Contingency On “As Is” Offer (Maryland Realtor Contract)

Offer Contingent On Home Inspection Template

Depending on your state, you are likely to have a slightly different variation of the home inspection contingency.

Your best bet is to ask a Realtor for a sample of their actual home inspection contingency to look over. Here is a sample from an actual realtor contract in the state of Maryland for a home inspection contingency…

What’s The Biggest Reason To Make Your Offer Contingent On A Professional Home Inspection?
Home inspection contingency (MD Realtor Contract)

Get A Home Inspection Contingency If You Can

Unless it is the home of your dreams, and you are in a super hot market — I couldn’t imagine buying a home without a home inspection contingency. It can literally save you from a financial disaster.

Unless you have a contractor background and know what to look for — the average person can’t spot hidden and major defects. Major house problems aren’t always clearly visible, and home inspectors are trained to find these issues. It can be a foundation problem, an attic infestation, a decaying roof, or a myriad of house problems.

And if you do make a purchase offer without a home inspection contingency, at least put down a deposit that you are willing to walk away from — and still get a home inspection performed.

It is also important to verify that the home inspector is licensed in your state (if required) otherwise it will not satisfy the requirements of the contingency.

Read Also: Should The Seller Be Present During The Home Inspection?

Other Home Guides

Looking to learn more about home maintenance? Check out our other informative home product reviews and guides!

things-that-fail-a-home-inspection-1

After inspecting hundreds of homes, I have a strong idea of what will ‘fail’ a

Read More »
should seller be present at home inspection

The question of whether a seller should be at the home inspection is really dependent

Read More »
asbestos home inspection cost (1)

How To Inspect For Asbestos During Home Inspections? Home inspectors are always on the lookout

Read More »
questions to ask during a home inspection (1)

The home inspection is a really important part of the home buying process, and you

Read More »
home-foundation-inspection

Home foundation inspections typically involve walking the perimeter of the foundation closely looking for cracks

Read More »
how much does a home inspection cost (1)

Do you want to learn about the typical cost of a home inspection? The cost

Read More »

Leave a Comment

Arie Van Tuijl

Arie Van Tuijl

I am a licensed home inspector in two U.S. states and the founder of Home Inspector Secrets. After performing hundreds of inspections, and seeing thousands of house defects, I realized people would love to have an online resource dedicated to home maintenance. I write detailed home guides and product reviews sprinkled with inspection tips. You can read my bio here.

Like? Please Share With Friends

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit

About Home Inspector Secrets

Home Inspector Secrets is an online resource for owners, buyers, and sellers to understand all aspects of home maintenance. We have detailed home guides, product reviews, inspection advice, and much more.