When buying a home, the inspection contingency is a crucial part of the process that protects buyers from unforeseen issues. However, mishandling its negotiation can lead to costly mistakes, lost opportunities, or unnecessary stress. Below we’ve outlined a few key do’s and don’ts to avoid when negotiating a home inspection contingency, helping buyers make informed decisions and safeguard their interests.
1. DON’T Waive the Inspection Contingency Entirely
One of the biggest mistakes is agreeing to waive the home inspection contingency just to make an offer more attractive in a competitive market. While this might speed up the sale, it exposes the buyer to the risk of hidden defects, expensive repairs, or even legal issues after closing. On the seller side – if you’re looking to move to close quickly – consider having an inspection done and offering it to buyers for review. This may help overcome initial questions, especially for unique properties.
2. DON’T Accept a Limited Scope Inspection
Some sellers or agents may suggest limiting the inspection to only certain aspects of the property, such as just the roof or foundation. By not insisting on a comprehensive inspection, buyers may overlook problems with plumbing, electrical systems, appliances, or pest infestations. A good approach is to engage an inspector that can complete a general review of the entire property. Based on those results it may make good sense to get additional inspections on specific areas by specific professionals. This information can be key in preparing the inspection response.
3. DON’T Rushing the Inspection Timeline
Negotiating for a very short inspection period (e.g., 24–48 hours) can leave buyers scrambling to schedule a qualified inspector, review findings, and make informed decisions. Always ensure the contingency period allows enough time for a thorough inspection and consultation. If an inspector is available quickly – great – both buyer and seller agents are typically flexible knowing professional inspectors in our area may be booked out a bit and it’s your agent’s job to ensure that timeline isn’t an issue. Buyer tip – in a competitive bidding situation? Get a tentative appointment when crafting your offer to work through inspection quickly but diligently if you’re working towards providing a quick close as part of your offer.
5. DO Engage Licensed Inspectors & Additional Inspections
Agreeing to use a seller-chosen or unlicensed inspector can compromise the objectivity and quality of the inspection. Buyers should negotiate the right to choose a qualified, licensed, and independent inspector. Some properties, especially older homes, may require specialized inspections (e.g., mold, radon, sewer line). Not negotiating for the right to conduct these additional inspections can leave buyers vulnerable to unforeseen problems.
This response is important, and those area-specific professionals mentioned in item 2 are extremely helpful in this phase. Typically, a concern would be noted by your general inspector, your agent will work with you to get a certified professional to further investigate and quote needed repairs for that concern. In providing an inspection response, your agent can then outline the issue, have a third part professional recommendation for the remedy and it eliminates disagreement on the issue itself and potentially the estimated cost of the repair. For instance, say an inspection finds a window isn’t working properly and needs to be replaced. The buyer may feel that replacement is a $500 fix and the seller may disagree and feel it is a $200 fix. Having the professional estimated providing an actual cost to fix eliminates the opinions and provides good data for both the buyer and seller to negotiate from.
4. DO Negotiating Terms for Repairs in Good Faith
The inspection response is designed to specify what happens if issues are discovered during the inspection—such as needed repairs, who pays for repairs, or what constitutes a deal-breaker. Your agent should be adept at presenting the issues you feel are important in a way that conveys remedies requested to address prior unforeseen issues that have been determined through the inspection. Keep in mind that repair or credit requests to remodel, improve, or address aesthetic issues will often not sit well with sellers.
Conclusion
Negotiating a home inspection contingency requires careful attention to detail and a willingness to protect your interests. As stated at the beginning of this article, inspections are in place to protect buyers from unknown issues, new information about specific health or safety problems with the property. Avoiding these common mistakes helps ensure that your home purchase is a sound investment and that you’re fully informed about the property you’re buying.