Buying a house is a far more complicated process than buying a car or the latest smartphone model. The process itself has a lot of moving parts, one of which is having the property checked by a professional home inspection. You might be thinking that you can do the inspection yourself and that hiring someone else to do it is just a waste of time and money.
However, if you want to make sure that the property you’re buying doesn’t have any underlying issues, it is crucial to have it inspected by a professional. You also need to make sure that the contract you’ll be signing with the seller has a home inspection contingency. This guide should help you learn more about what a home inspection contingency is and how important it is in any real estate transaction.
What is Home Inspection Contingency?
Home inspections are a necessary part of a real estate transaction since it provides an opportunity for the buyer to identify any major issues with a home before closing. This involves hiring a real estate professional or an engineering specialist to go through a home and give buyers a report on its condition. The transaction itself involves the signing of contracts, and it’s important to have a home inspection contingency clause in it.
A home inspection contingency is a clause in the real estate contract that lets the buyer cancel the sale or try to negotiate repairs if the results of the inspection looked unsatisfactory. This protects you, the buyer, from spending your life savings on a property that has too many issues to deal with.
How Does a Home Inspection Contingency Work?
During the process of buying a home, you can have a contingency period where you can hire a professional home inspector to assess the condition of the property. This should be stated in the home inspection contingency in the real estate contract exchanged between you and the seller. It basically allows you to gather information about the condition of the house. Some of the things being looked at during the inspection are:
- Yard, landscaping, trees, and walkways in good condition
- Ridge and fascia board lines appear straight and level
- No leaks of any kind, especially on the septic tank
- Visible foundation in good condition
- No stains on exterior surfaces
- Wood frames and trim pieces are secure, with no cracks, rot, or decay
Those are just examples of what inspectors look out for in a new or previously owned property. Once they’ve completed their assessment, they will then provide you with an inspection report detailing their findings.
If the inspector did not find any major problems in the property, then the buyer can choose to push through with the sale. However, if there are issues like structural damage, pest infestations, mold, and other hazards, you can either negotiate or cancel the transaction altogether. You can negotiate with the seller to decrease the sale price, or ask them to repair the damages and shoulder the expenses.
If you’re worried about the many financial pitfalls that can occur when buying a house, having it thoroughly inspected could be the solution you’re looking for. Home inspection contingencies are not compulsory at all. Seeing how it can protect you from potential loss of money, you’ll benefit a lot from it should you need to use the contingency clause.
AEI Inspections is the number one firm when it comes to structural engineering and home inspections in Tulsa. Our team of licensed professional engineers is here to aid you in residential and commercial property inspections, structural design, and forensic structural engineering investigations. Contact us to learn more about the services we provide!