What is an Inspection Contingency?
Who needs one and how does it affect me as a seller?
An inspection contingency allows a buyer to have the property inspected and the right to terminate the contract or ask the seller for repairs or monetary concessions based on the inspection. The inspection contingency has a default of
10 days but oftentimes is shortened. During this timeframe, a buyer may rescind for any reason and receive their earnest money back as long as it is in writing before the expiration of the contingency.
So the question is do you need an inspection contingency? As a buyer yes! Now there may be some circumstances where you don't need an inspection contingency but in most cases you will want one. It allows you and out in the contract in case something changes or you discover something about the property or neighborhood you do not like or you just get cold feet. And it allows you to have an inspection of the structural and mechanical and general condition of the property and check for
hazardous materials and pests. You don't know these things about a house usually until you do some deeper investigation. There can be recalled items water in the crawlspace, foundation issues or more that usually you cannot see at the time of viewing the property.
The inspection must be performed by the buyer or by a licensed inspector. So how much does an inspection cost? The price depends on the square footage of the house but typically between $450 and $700. But it can save you thousands of dollars in costly repairs if nothing else it will give you peace of mind that you are buying a good home!
Now if you are a seller it is a much stronger offer if a buyer does not include an inspection contingency or includes one with a very short timeline. The inspection contingency is a very important contingency for both the buyer and the seller and it can be a bit confusing.
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