We understand that there’s a lot to learn before embarking on your home buying experience. Before you buy a home, it’s important to make sure that it’s structurally sound and there are no major defects with the property. A professional home inspection isn’t always required unless it’s specified in the loan contract, but it can be to your advantage to schedule one.
Home inspections and contingencies seem to go hand-in-hand. Time and time again people are saved if there’s something seriously wrong with the property and learning about these early in the process can prevent pitfalls down the road or catch them before the mortgage deal is finalized.
A well-written contingency will provide first-time homebuyers with peace of mind to confidently purchase a house on their own terms. So, what is a home inspection contingency?
A contingency clause in a contract is some condition or action that must be met for the contract to become binding. The intent of contingencies in real estate contracts is to make sure the buyers have a full understanding of the home they are about to buy. It protects buyers, giving them room to back out of the sale or negotiate the contract further without penalty or breach of contract.
A home inspection contingency protects the buyers and gives them the right to have an inspection in a specific period of time. An inspector will provide the buyer a list of issues, necessary or potential repairs or damage found in the home so the buyer is fully informed on the physical condition of the home before moving forward with the investment.
It’s important to remember as a first-time homebuyer to consider the ramifications of any contingencies you may want to negotiate. Refrain from asking for any contingencies that are not absolutely necessary, as the more you add, the more likely sellers are to discredit your offer. Consequently, the fewer contingencies, the more attractive your offer is likely to be.
And many first-time homebuyers question whether to get an inspection when buying a new home. A new home isn’t guaranteed to be problem-free. If the construction crew or the builder did sloppy work or generally cut corners, you might have issues down the road.
A home inspection will cost you a little bit of time and money, but the inspection can reveal problems that you may be able to get the current owners to fix before you move in – or else, prevent you from inadvertently buying a money pit. For new home construction, it’s an imperative part of the home buying process. If you are a first-time homebuyer, an inspection can give you a crash course in home maintenance and a checklist of items that need attention to make your home as safe and sound as possible.
Remember, it takes two happy sides to take a deal to the closing table. The seller needs to be aware that contingencies are merely a safety measure exercised by buyers, and buyers need to recognize that contingencies are essentially an additional obstacle in the transaction, but in the long run you’ll be glad you did it.
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