Buying a home is one of the biggest investments most people will make in their lifetime. To ensure that you’re getting a quality property, it’s important to have a home inspection done. A home inspection contingency is a clause in a real estate contract that allows the buyer to cancel the contract if the inspection reveals major issues with the property, or the option to re-negotiate, request repairs and/or credits. In this article, we’ll take a closer look at the 15-day real estate home inspection contingency and how it can protect buyers.
What is a 15-day real estate home inspection contingency?
A 15-day real estate home inspection contingency is a clause in a real estate contract that allows the buyer to have a home inspection conducted within 15 days of signing the contract. If the inspection reveals major issues with the property, the buyer can then either negotiate with the seller to have the issues fixed, ask for a credit, or cancel the contract altogether.
This contingency is important because it gives the buyer time to thoroughly inspect the property before making a final decision. It’s also a way for buyers to protect themselves from buying a property with major issues that
could be costly to fix.
In recent years, to be more competitive, buyers’ have been waiving the home inspection clause and buying the home “as-is”. In the last six months, home inspections are becoming prevalent again but there are ways to alter the clause to make it more appealing to the seller. A buyer could change the 15 day home inspection period to just 3, 5, 7, 10 days. By shortening the length of time, it puts the seller at ease that you will do your due diligence in inspecting the property quickly. Should something happen and the buyer want out, the seller could list their home back on the market without wasting too much time.
How does it work?
When a buyer finds a home they’re interested in, they’ll typically make an offer that includes the 15-day home inspection contingency clause. Once the seller accepts the offer, the clock starts ticking on the 15-day period. During this time, the buyer will hire a professional home inspector to inspect the property. The inspector will examine the home’s structure,
plumbing, electrical, HVAC, and other systems to determine if there are any major issues.
If the inspection reveals major issues, the buyer can then decide how to proceed. They can negotiate with the seller to have the issues fixed, ask for a credit, or cancel the contract altogether. If the buyer decides to move forward with the purchase, the contingency clause is typically removed from the contract, and the sale moves forward.
Why is it important?
A 15-day home inspection contingency is important because it protects the buyer from purchasing a property with major issues. It allows the buyer to fully assess the property’s condition before making a final decision, which can save them a lot of money in the long run.
Without a home inspection contingency, the buyer would be responsible for any repairs or issues that arise after the sale is finalized. This could end up costing the buyer thousands of dollars, and it’s something that can be easily avoided with a home inspection contingency clause.
What are the potential drawbacks?
While a home inspection contingency is important for buyers, there are potential drawbacks to consider. For example, if the inspection reveals major issues, the buyer may be required to negotiate with the seller or cancel the contract.
This could delay the closing process and lead to additional expenses. Additionally, if the seller receives multiple offers on their property, they may be less likely to accept an offer with a home inspection contingency. In this case, the buyer may need to weigh the risks and benefits of including the contingency in their offer.
Conclusion
A 15-day home inspection contingency is an important clause to include in a real estate contract. It allows the buyer to fully assess the property’s condition before making a final decision, which can save them money in the long run. While there are potential drawbacks, the benefits of a home inspection contingency far outweigh the risks. If you’re in the process of buying a home, be sure to discuss the home inspection contingency with your real estate agent
to ensure that you’re protected.