The search for the perfect home can be exhausting. Once you finally have found the home you want, planned to go through with the purchase, discussed terms with the seller, secured financing, and had all the paperwork drawn up, it's a done deal right? Slow down. Does the contract include an inspection contingency? If not, the contract may need to be amended.
What an inspection contingency does is gives you the right to back out of the purchase of the home should a home inspection reveal that the property is not in its stated condition. It should also empower you to renegotiate certain parts of the contract should problems be discovered. With this protection in place, you will be able to cancel the contract should the home inspection report list unsatisfactory conditions in regard to the home or property. In some cases the seller will agree to pay for repairs so that the home sell will proceed.The inspection contingency will do little good if you do not select a highly qualified home inspector. If problems are missed, you may be none the wiser and continue on with the purchase. Once problems are discovered, it may be too late to take any action. Feel free to do an inspection of your own. However, this should never take the place of an actual home inspection. The average person will not be able to spot certain red flags, and may not know what elements of the home need to be closely examined. A qualified home inspector will look a hundreds of different parts of the home.
In some cases the real estate agent may go ahead and include an inspection contingency in the contract. However, since these can be deal breakers, expect this to be the exception and not the rule. Specifically ask your real estate agent to include an inspection contingency in the contract, and refuse to sign it if it is not included. Should you have already signed the contract without the contingency included, it may be possible to have the contract amended, but do not count on it. Both real estate agents and sellers tend to view a contingency as vehicle for possible problems, which neither of them want.
Note that an inspection contingency make only be in place for a period of time. Be sure to have the home inspection completed as soon as possible to allow time for any additional inspections that may be needed. A general inspection could reveal a problem that needs to be closely examined by a specialist. Quick inspection will also allow provide you with the inspection report right away, and may allow time for repair negotiations if needed.
