Everything You Must Know About Home Inspection Contingency- By: Leticia Carvalho
An increasing number of homebuyers are opting not to include home inspection contingency in their contract to buy a property. They choose to waive their right for a home inspection contingency to allow them to have the upper hand in multiple offer situations.
Meanwhile, it would be favorable on sellers, especially of foreclosed homes, that offers made by buyers do not contain a contingency for home inspection because it is like selling their properties as-is.
Without a contingency, buyers cannot require sellers to make necessary repairs, regardless of the house’s condition, that are not stipulated in the sales contract. Buyers cannot also void the contract even if the home requires major repairs upon purchase.
Furthermore, with a contingency to hire a home inspection company, buyers can renegotiate the price for the property to offset the added costs for repairs to be done.
Prudential California Realty realtor Fred Friedland said that he would never advise buyers to waive their option for inspection contingency. He warned buyers that they are facing a huge risk of purchasing a home with unanticipated defects if they waive their right to conduct home inspection services.
However, Friedland explained, not taking advantage of the option for inspection contingencies does not mean that home buyers are not aware of what they are buying into.
A buyer who works as a general contractor may make an assessment of the property without a home inspection report. He may then be able to avoid paying for potential home defects, such as faulty electrical wiring, defective cooling or heating system, malfunctioning major appliances or a leaking roof.
On the other hand, some states have disclosure laws that force sellers to divulge any defects on their homes of which they know of.
Smart buyers will never pass up the option to perform a home inspection because they know that it would help them make an informed decision.
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Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.