Interestingly enough, when it comes to conducting a home inspection, there are those who believe a home inspection is a PASS or FAIL process! Really…that is not the case at all.
Some may also view the home inspection response as a way to negotiate a lower price in lieu of work to be done…this too is not the real purpose of this vital step in the home buying (and selling) process.
In actuality, the home inspection process is essentially the home buyers opportunity to conduct an assessment of the property for the purpose of their use.
Some home buyers may be buying the home AS-IS and will conduct a home inspection only to determine if all the major systems are within their ‘comfort zone’ since they may be planning on doing a gob of work anyway.Others want the home inspection to be about what they need to know from a deferred maintenance standpoint. They know the home may need some work…they just don’t want any surprises!
Then there are home buyers who need to know the home is in the kind of condition that allows them quiet enjoyment with little to no need for work on their part.
Whatever your reason for conducting a home inspection, depending on the markets condition…not to mention the homes condition, the home inspection response should be crafted with diligence and the intent to identify and remedy issues found in the home.
The intention of this post is to outline what you should expect and lastly, what you should negotiate as a home buyer and a home seller to insure the deal does not get nasty or worse…fall apart.
THE HOME INSPECTION RESPONSE – CONTINGENCY PERIOD
In my humble opinion, every home buyer MUST have their potential home inspected! It’s both pragmatic and safe.
Even in the case of a very hot market where home buyers will waive their inspection contingency in order to curry favor with the seller and their offer…you still should do what you can to make sure the major systems are in good working order.
In the case of a surging sellers market or entering a bidding war where parties are waiving the home inspection in order to “win” the bid, make sure to conduct a pre-inspection.
A pre-inspection is a home inspection done before writing a purchase and sale. This ensures that you are not jumping into anything blindly and allows you to waive the home inspection contingency.
That said, market conditions aside, the S.O.P (Standard Operating Procedure) for most home buyers is to attach a Home Inspection Contingency to their Purchase and Sale Agreement.
This opportunity, known as the inspection contingency period, is established for the home buyer to have a specified time period, generally 10 days unless otherwise agreed upon, in which they can conduct their overall assessment of the condition of the property. This contingency period does not preclude a home buyer from conducting additional…
By Jason Fox | The Madrona Group