You may be wondering what is a home inspection contingency. A home inspection contingency is something that is added to an offer when purchasing a home and it typically states that the sale of the home is contingent on the home inspection.
Many times people will automatically have a home inspection completed on the home they are purchasing to ensure they are not buying a home with a ton of issues. However, in this competitive market buyers are trying anything to stay competitive and beat out other people who are trying to purchase the same home.
For example, you have finally decided it is time to buy a home, you find one you love and submit an offer but it is not accepted. On to the next house! You submit an offer but again, it is sold to someone else. When you are exploring houses and submitting tons of offers it can definitely get discouraging when your offer is not selected. It can be so frustrating and many times you will begin to consider all the different ways you can make your offer stand out from others. In a competitive market, many people are offering well above the asking price and submitting their best offers.
The Market is Very Competitive
The scariest part of a competitive market is unfortunately, some buyers are choosing to forgo a home inspection contingency when writing an offer. Skipping a home inspection can sometimes make your offer seem more promising to sellers because they have less risk of you backing out of the deal if an inspector finds something wrong.
This is very scary and risky because if something is majorly wrong with the home you run the risk of not knowing prior to closing on the home. During a home inspection an inspector will review the entire home and list any issues or safety concerns. When you skip the inspection process completely you do not have the thorough inspection process that helps you know all the safety concerns and areas that need fixed in a home.
Although skipping a home inspection is not recommended, we understand that many people are choosing to drop a home inspection contingency to make their offers sound more favorable. If you are someone who is considering dropping a home inspection contingency be sure to weigh all the pros and cons of doing so. Make sure that if you choose to skip any contingencies in your offer you are comfortable with your decision and know the risks.
If you choose to purchase a home without having a home inspection completed it is a great idea to have one finished after the closing for your own personal benefit. A home inspection provides you with a detailed report of all areas of the home and any potential safety hazards. Having this information is very beneficial to any homeowner so they can prepare for what they need to fix and pay attention to.
Should You Skip a Home Inspection Contingency?
So if you are asking the question, “Should You Drop a Home Inspection Contingency When Submitting an Offer?” The short answer is no! However, in a competitive market sometimes buyers have to drop it to purchase the home they want and to stay competitive with other buyers. If you are considering dropping a home inspection contingency from your offer, be sure to get a second opinion of the property and schedule a walk and talk inspection prior to submitting the offer.
Having a home inspection completed after purchasing a home is a terrific idea as well, for your own benefit. Be sure to do your own research as a buyer and only do what you are comfortable with. Happy House Hunting!