You’re looking to buy a home but you’re not sure what to do about your home inspection. Look no further, as we will explain why it is important to make your closing contingent on an actual home inspection.
While the process of finding your dream home can be exciting, it’s crucial not to rush into closing the deal without thoroughly understanding the property’s condition. One of the smartest moves you can make as a homebuyer is to make your offer contingent on a professional home inspection. We’ll explore five important reasons why a home inspection is a crucial step in the home-buying process. But first, what is a contingent offer?
What Does it Mean to Make Your Offer Contingent?
Making your offer contingent on a professional home inspection means that your offer to purchase a home is conditional upon the property passing a thorough inspection conducted by a qualified home inspector.
In other words, you are stating that you are willing to proceed with the purchase of the house, but the deal will only be finalized if the home inspection report meets your satisfaction.
When a homebuyer includes a contingency for a professional home inspection in their offer, it gives them the opportunity to have the property thoroughly examined by an independent inspector before committing to the purchase.
If the inspection report reveals any significant issues, defects, or safety concerns, the buyer has the right to negotiate with the seller to address these problems. Depending on the terms of the contract and the specific contingencies, the buyer may be able to request repairs, credits, or a price reduction to account for the cost of addressing the issues.
In case the inspection reveals extensive or severe problems that the buyer is not comfortable dealing with, the contingency allows the buyer to back out of the deal without any penalties or forfeiture of their earnest money deposit. This protection is crucial, as it ensures that buyers are not stuck with a property that requires extensive repairs or poses safety hazards that were not initially apparent.
Why it is Important to Make Your Offer Contingent
1. Uncovering Hidden Issues
No matter how well-maintained a house may appear, there could be hidden issues that aren’t so obvious. A professional home inspection conducted by a qualified inspector will help reveal any potential problems, such as structural issues, electrical or plumbing defects, roofing problems, and more.
Identifying these issues beforehand gives you the opportunity to address them with the seller or reconsider your purchase decision.
2. Negotiation Power
Making your offer contingent on a home inspection provides you with valuable negotiation leverage. If the inspection report highlights significant defects or necessary repairs, you can use this information to request the seller to fix the issues or offer a price reduction. This way, you can ensure that you’re not overpaying for a property with hidden problems.
3. Budget Planning
Knowing the condition of the property allows you to plan your budget accordingly. If the inspection reveals that certain components of the house need repairs or replacements, you can factor in these costs and assess whether you can comfortably afford the property in light of these additional expenses.
4. Avoiding Surprises After Closing
Without a home inspection, you run the risk of discovering problems after closing, which can lead to significant stress and unexpected financial burdens. By conducting an inspection before closing, you have the opportunity to address any concerns and ensure a smoother transition into your new home. This is saving you a MASSIVE headache later on! Trust us.
5. Safety and Peace of Mind
A home inspection not only focuses on structural and maintenance issues but also on potential safety hazards. This includes identifying fire hazards, insect/animal infestations, mold infestations, radon gas, and other health and safety concerns. Knowing that your future home is a safe environment for you and your family provides priceless peace of mind.