Strategies For Securing A Contract WITH A Home Inspection Contingency


Strategies For Securing A Contract WITH A Home Inspection Contingency
By Scott Rogers • May 4, 2021
Some would-be home buyers are, reasonably, not comfortable entering into a contract to purchase a home without an inspection contingency. But...in a competitive market where there are often multiple offers, it is harder to compete as a buyer if one or several of the competing offers does not include an inspection contingency. Of note, we won't really know if competing offers do or do not have inspection contingencies, but when there are multiple competing offers in the current market, it seems that there will often be at least one without an inspection contingency. So, how can a buyer who desires an inspection contingency compete in such an environment? Here are a few ideas... 1. SHORTEN THE TIMELINE Proactively get on a home inspector's schedule so that you can include a shorter timeline in your offer for the inspection contingency to be resolved. 2. REMOVE YOUR OPTION TO TERMINATE The standard home inspection contingency gives you the option to either request repairs or terminate the contract after completing the inspection. Give the seller a bit more peace of mind that you won't just terminate the contract even if the inspection goes reasonably well by removing that second option from your inspection contingency. 3. SACRIFICE YOUR DEPOSIT Consider offering to give the contract deposit to the seller if you cannot work your way through the inspection contingency. This will show that you are committed to making the deal work and successfully getting through the inspection contingency. 4. RAISE THE STAKES If you are including an escalation clause to make your offer $1K above any other offers -- consider raising that threshold, If your escalation clause takes your offer to $276K with an inspection contingency compared to another offer at $275K without an inspection -- the seller will probably choose the offer that is $1K lower without an inspection contingency. But if your escalation clause made your offer $5K higher than other offers, the seller might decide to accept your $280K offer with an inspection contingency instead of the $275K offer without. In the end, it can be a challenging time to secure a contract on a house regardless of the contingencies you want to include -- but including an inspection contingency can make it much more challenging to be successful. If you definitely want that inspection contingency in place, consider any or all of the strategies above to increase your odds of securing a contract to buy a house. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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