Welcome back to another episode of “Keeping in Tune With the Market.” Today’s question is: What is a home inspection contingency and how do I deal with it?
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Welcome back to another episode of “Keeping in Tune With the Market.”
Today’s question is: What is a home inspection contingency and how do I deal with it?
Imagine you’ve just found a great home or a great buyer for your home, and the time has come for the home inspection. A home inspection is usually done before an offer is made or accepted. A home inspection contingency is an addendum that is placed on a contract that states certain agreed-upon repairs must be completed within a given time frame.
After a licensed home inspection company has completed the inspection, which takes about an hour, they will then submit a written report to the buyer. The buyer will turn the report over to the agent, who will then turn it over to the seller.
Sometimes, structural or safety issues may be uncovered during the inspection. But it’s important to remember that not every item an inspector puts on the report is urgent. Some issues will just be cosmetic.
But if there are major repairs, the buyer’s agent is going to make a repair request of the seller. A seller can obtain a second opinion from another professional at this point.
Once the buyer and seller are made aware of the items on the inspection report, negotiations can begin. It’s critical that everyone approaches these negotiations reasonably.
After everyone is in agreement, the seller must take care of the agreed-upon repairs prior to closing. The seller will need to provide the buyer with written receipts for any and all repairs.
There is still the possibility of the contract being canceled by either party if they cannot reach a consensus on a given item. However, if the contract moves forward and all repairs are taken care of, then the inspection contingency will be removed.
If a transaction is taking place between a good buyer and a willing seller, it’s best to take care of these issues as soon as possible.
Additionally, if you’d like a free copy of our report on how to avoid 11 costly home inspection mistakes, send me a quick email at firstname.lastname@example.org or text me at (727) 595-8880.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.