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Your real estate agent can help you arrange the inspections and send the findings to the seller in a timely manner. When you submit a sales contract with a home inspection contingency, it is essential to conduct the inspection as soon as possible—the extra time could be helpful. If the home inspector says you should call an HVAC specialist to test the heating system further, you might have to contact several firms before finding someone who can come out within your time frame.
The inspector will look for signs of decay, including missing or broken parts. In addition to noting any problems, home inspectors also point out the positives! They will inform buyers of things that won’t likely need to be replaced anytime soon. They will point out the “good things”, that in turn make buyers feel comfortable and reassured about the house they want to buy. Make sure you bring up items that are only deal breakers for you to purchase the home.
Colorado’s Top Rated Inspection Company:
If the title review deadline draws near and the home is not proven to legally belong to the self-proclaimed owner, the buyer can reclaim their good faith money. If you are unsure about your contingency deadlines, you’ve come to the right place! Check out these commonly disputed deadlines so that you can be prepared and know what to look out for. By doing this, the prospective buyer is showing the seller that they are serious about the transaction. Purchasing rural property comes with a whole different set of considerations.
After the home inspection results are received, the buyers and their buyer’s agent will review the reports and discuss the results. If there are no issues of concern, some buyers will be satisfied and not ask the seller to make any repairs. But what happens when there are things on the report that concern buyers? How long after a home inspection does a buyer have to decide what to do? The typical timeframe is within 14 days of the “contract acceptance date”. Whatever timeframe was agreed upon in the contract determines how long a buyer has to respond.
What is a home inspection contingency clause?
We've had many over the years where the listing agent was negligent. We don't alert them (don't give them another bite at the apple), just wait until a couple of days before settlement, do the walk-through and send the bill to the Title Company to deduct from the Seller's net. However, if the buyer discovers something he/she didn’t like after the agreed upon deadline, the seller often has the choice to refund the earnest money or not. Some of those repairs in the addendum that might be in your best interest to fix are called reasonable repair requests. These are repairs that a buyer is within reasonable grounds to request and are usually health or safety concerns.
The buyer pays for their inspections, and therefore, the inspection and the results are “belong to them”. The buyer, their real estate agent and the inspector appreciate the privacy to talk and inspect without a nervous homeowner lurking nearby. Most lenders require a “wood-destroying insect inspection” in order to approve a loan to buy a house. They want to be sure there is no structural threat to the house, as well as any pests that can cause damage. In this instance, the seller is required to pay for the inspection.
How to Handle an Inspection Objection
Generally the attorney will keep their eye on the ball in regard to contract deadlines...however, we agents are always double checking, just in case. A contingency period typically lasts anywhere between 30 and 60 days. If the buyer isn’t able to get a mortgage within the agreed time, then the seller can choose to cancel the contract and find another buyer. But be aware that there are some state-mandated nonnegotiable repairs like fixing smoke detectors, railings or other retrofit items that sellers are required to address. Talk with your real estate agent to see what these necessary repairs are in your state. Also, check the addendum for any repairs that might be in your best interest to fix or negotiate.
A home inspection contingency clause is a stipulation in the purchase agreement that says the buyer can inspect the home, top to bottom, and then decide whether to move forward with the purchase. If your contract contains an inspection contingency and the applicable deadline hasn't passed, the seller should return your earnest money deposit. Whether your inspection contingency period is the typical 10 days or you’ve agreed upon a different time period in your contract, have patience. Buyers have until the end of the contingency period to back out of the sale or risk losing their earnest money.
Buyers can also choose to “back out”, terminate the contract and walk away from the deal if they aren’t satisfied with the seller’s decision to only fix certain items. Typically, negotiations will continue until both the buyers and sellers come to an agreement. When a seller agrees to complete all of the repairs that were requested, buyers typically have peace of mind and the negotiation of repairs is over. The seller has up until settlement to have the repairs completed.
When a seller won’t make any repairs after a home inspection, the house will be sold “as is”. If they don’t, negotiations for repairs could possibly continue in case the sellers will change their minds. Otherwise, the buyer can choose to “back out”, terminate the contract and walk away from the deal. When buyers ask the sellers to make repairs, and the sellers respond within the required 5 days, backing out can become more difficult. If the sellers do not agree to fix everything on the repair list, buyers can terminate the contract and back out. However, if the sellers agree to fix everything on the list, buyers can not terminate and back out of the contract.
These could include homes that have experienced extreme weather in recent years, like flooding or a severe hail storm that’s notoriously damaged houses in the area. Older homes, where the electrical, plumbing or other vital systems may now be outdated, should probably also be inspected. Having a plan in writing to get out of a contract — in the event that the home inspection report turns up some big-ticket issues — can protect you from becoming a financial scapegoat for those issues. Scott Home Inspection provides integrity-based home inspections, energy assessment services, and rental inspections to help Colorado families live in safe, healthy, and comfortable homes. Scott Home Inspection is Colorado’s highest rated inspection company offering home inspections, energy services, and Boulder Rental License Inspections.
As a seller, make calculated repairs based on your ability to sell the house to someone else for the same price. If you could sell the house to someone else for the same price with the same issues, it's probably not wise to make the repairs. The negotiation process is largely emotional, especially right after an inspection. As you go to the seller with all the issues you want them to fix with the house, remember that this is a place they've spent large amounts of time, energy, and money on and it has emotional value for them. Regardless of the inspection results, home inspectors should not be advising buyers as to whether they should move forward with the purchase. Their job is simply to inspect and report their findings, and then let the buyer come to their own conclusion.
Not hearing from them usually means they accepted the condition of the home, not rejected it. So don’t worry if it’s getting close to the inspection deadline and you haven’t heard from them yet. There are several ways a buyer can back out of a contract after receiving the results of inspections. At some point, usually during the first 2-3 weeks a house is under contract, an appraiser will go to the house to provide an accurate value. When the appraiser goes to the property, he or she will not only determine the value of the house, but will also look for anything the lender will require to be repaired. Very few home inspections are “clean,” meaning there’s not a thing wrong with the house.
Jeff, this is a contingency where we need to be as compulsive as the house nerd who did the inspection! Great info Jeff, sometimes it is hard to get buyers to understand that completion dates are not suggestions... Luckily, New Venture Escrow is here to help guide you through every step of the way. Whether you want to buy a house, refinance or take cash out, you’re not alone. All of these are valid questions and we’re here to ease your mind as you move forward in your selling journey.
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Chris Scott is an ASHI certified home inspector with multiple years of experience in home inspections, blower door testing, duct leakage testing, and Boulder Rental License Inspections. Occasionally something will come up in the inspection that requires further evaluation. Maybe you want a roofer to look at a problem or a structural engineer to evaluate something we found during the inspection. Deadlines can be moved for these items, but if you give yourself extra time you can save the trouble.
For example, if the home's water pressure is low, the home inspector will note the low pressure on the home inspection report and suggest that the buyer hire a licensed plumber to take a look. The cause could be tree roots growing into the plumbing system, or the pipes could be corroded, but a home inspector can't tell any of that from a visual inspection. Under last year’s contract, many brokers in competitive purchase situations would delete the inspection resolution deadline. This essentially created a contract whereby the buyer could terminate upon inspection, but the buyer could not object and then seek a resolution.
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