How Does a Home Inspection Contingency Affect the Homebuying Process?

Although there is no single, national law governing home inspections during the homebuying process, home inspection contingencies are an essential part of the purchase contract in most states. This practice gives prospective buyers the freedom to make an offer and yet be able to cancel or alter their offer based on problems that surface during the home inspection. Additionally, homebuyers can use the home inspection findings as a valid reason for negotiating the needed repairs.   

Key Advantages of Getting a Home Loan From a Non-Bank Lender  

The average home inspection costs around $315, with condos and small homes under 1,000 square feet costing as little as $200. Larger homes over 2,000 square feet will run $400 or more.

Home Inspection Timeframe

Scheduling and paying for the home inspection are the buyer’s responsibility. Normally, the buyer must have the home inspection completed within one or two weeks depending on the deadline stated in the contingency. The timeframe for the home inspection can be lessened or increased during the offer negotiation process. Your real estate agent can help you coordinate inspections and send the findings to the seller in a timely manner.

What Does a Home Inspector Inspect?

It is imperative that an objective third-party professional inspect the house. The American Society of Home Inspectors (ASHI) trains and certifies inspectors across the country. They state that “the standard home inspector’s report will cover the condition of the home’s heating system; central air conditioning system (temperature permitting); interior plumbing and electrical systems; the roof, attic and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and structural components.”

The home inspection report may include one or more recommendations for further inspections by licensed specialists regarding issues such as plumbing, electricity, mold, or termites and pests.

A professional home inspection is an invaluable tool for understanding a house’s real condition and value without having your judgment clouded by the strong emotions of buying a new home.   

What Are Your Rights When You Buy a “Fixer-Upper?”

You will still need a home inspection if you are interested in buying a fixer-upper for a low price. However, in your situation, you can take advantage of a special program from the Department of Housing and Urban Development. HUD’s 203(k) program provides FHA-insured loans specifically designed for homebuyers planning on repairing and occupying “handyman-specials and fixer-uppers.” The 203(k) program allows borrowers to purchase or refinance a property and include the cost of repairs and improvements in the loan.

The popular This Old House TV show cautions against buying a “fixer-upper” in need of “significant structural improvements” such as plumbing and electrical system overhauls, foundation upgrades, and extensive roof and wall work. These repairs are usually “invisible” and hardly ever raise the value of the house enough to offset renovation costs.

What Does a Home Inspection Cost?

The average home inspection costs around $315, with condos and small homes under 1,000 square feet costing as little as $200. Larger homes over 2,000 sq ft. will run $400 or more. Radon or mold testing will cost extra, but typically will cost less if you purchase them with a home inspection.

A professional home inspection is an invaluable tool for understanding a house’s real condition and value without having your judgment clouded by the strong emotions of buying a new home.

A and N Mortgage Services Inc, a mortgage broker in Chicago, IL provides you with high-quality home loan programs tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.

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