We understand that there’s a lot to learn before embarking on your home buying experience. When you finally make the decision to buy, you want to know that the home is safe and that there are no major defects. This applies to both new construction homes and older homes alike. This is why a professional home inspection is suggested. Home inspections are not always required, 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.
If any areas of concern are found, a contingency will provide first-time homebuyers with peace of mind. So, what is a home inspection contingency?
In real estate, a contingency clause is written into the contract to point out a condition or action that must be met in order for the contract to become binding. Contingencies assure that buyers have a full understanding of the home they are about to buy and it protects them by offering them to either negotiate the contract further without penalty or breach of contract or give them room to back out of the sale.
A home inspection contingency gives buyers the right to have an inspection completed in a specific period of time. An inspector will then provide the buyer with a list of issues or potential repairs or damage found in the home. This allows the buyer to be 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. It’s easy to see a list of items that need repair and at first thought expect the seller to repair everything. But, think about the sellers and what might sound fair to them. If you ask for each item to be fixed and another buyer is willing to overlook some of the items, the seller is more likely to sell to them.
A home inspection will cost you a little bit of time and money but could possibly prevent you from inadvertently buying a money pit. If you are a first-time homebuyer, you can learn a lot from a home inspection. The checklist you will receive from the inspector can easily become a checklist of items that need attention upon purchase.
Remember, it takes two agreeable 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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