There is a great importance in making your offer contingent on a professional home inspection as it lets you back out of the contract if there is something wrong with the house. First, you should know what a contingency clause is.
Basically, it is a condition or action that is needed to be met for a real estate contract for becoming binding. It is an important part of the contract when both the buyer and seller sign the agreement. Thus, it can save the buyer from scams and frauds.
Reason for Making Offer Contingent
Do you want to know what’s the biggest reason to make your offer contingent on a professional home inspection? Here is the answer to your question. The major reason is to make sure that you can walk away whenever you want and get your deposit back if there is a critical defect in the property.
If you do not have the house inspection contingency, you cannot get your deposit back if you walk away from the property. On the basis of this agreement, the dealer can fix the issue before you are granted to back out of the agreement. The seller can also offer a lower price of the house instead of fixing the issue with the house, then it would be up to you whether you accept the offer or deny it.
Defect In The Property
If you notice there is a major defect in the property or house, you have the right to walk away and get your deposit back from the seller. These defects may include a defective HVAC system that is broken and is leaking refrigerant. You can come up with a potential repair negotiation.
If the HVAC system is damaged, the seller has the option to give a discount on the total price of the property or install a new HVAC system for the buyer otherwise you can walk away and get your complete deposit back. But it is only possible if you want a home inspection contingency. If not, you cannot walk away from getting your deposit back.
For Peace of Mind
You need a home inspection contingency for your peace of mind even if you have checked the property thoroughly before buying it. But still, the contingent ensures that you are safe and are protected from scams. The seller and the buyer feel satisfied due to having this agreement. This agreement also includes what type of defects are included and what is excluded.
Is Waiving a House Inspection Worth It?
You should know when you are waiving a house inspection contingency, it means you are accepting the current condition of the house. It shows that you do not have any problem with this house even if there are some minor or major issues with it. You accept all the flaws and problems that come with this house.
For your information, waiving a house inspection contingency is worth it if you are a well-funded person but you should know that it does not prevent you from having a home inspection. It only means that you cannot use the results of the home inspection against the seller if there is any major issue with the property.
If you find a major issue with the house after getting it inspected, you still have the option to walk away. Waiving a house inspection contingency can make your offer stand out in a competitive market but there are also some disadvantages associated with this act. For example, you will not be able to bargain with the seller over the inspection results.
Is Everything Fixed by Sellers After Inspection?
Fixing the issues found by the inspector is based on the contract between the seller and the buyer. This contract includes what to fix and what not to. Commonly, buyers do not buy a house before getting it inspected by a home inspection company.
The major issues are fixed by the seller before selling the house. But if the seller has forgotten to fix some issues or systems in the house, you can ask him to fix them before buying the house. And if you haven’t noticed those issues before buying the house, you can ask the seller to fix them later if you have a house inspection contingency.
The major reason to have house inspection contingency is to keep yourself safe from scammers and save your money from getting wasted. This agreement allows you to walk away from the house if there is a major issue with the house. You can also take your deposit back or agree upon an offer made by the seller later when you decide to leave.