Methuen’s real estate market is getting very competitive lately. In April 2024, the home prices were up 4.8% as compared to last year. This year, the homes are sold after 16 days of being on the market, while last year it took 20 days. With such high competition faced by homebuyers in Methuen, they almost forget that they need to ensure that the property they’re buying is worth the investment. Just so they don’t miss on the property, most of the home buyers end up purchasing a house without getting it inspected. If you’re also someone who is planning to do something similar, we’d stop you right there. Yes, waiving a home inspection seems like a smart choice in the competitive market of Methuen. But you shouldn’t take your home purchase lightly, that too without a thorough consideration first.
You’re making the most significant purchase of your life, so you’ve got every right to ensure that you’re not throwing your money in a pit. It’s recommended that you include a home inspection contingency in your offer. This is one of the most effective ways of protecting your investment.
In this blog, we will explain a home inspection contingency in detail and will also highlight its importance.
What Is A Home Inspection Contingency?
A home inspection contingency, also known as “due diligence contingency”, is a legal clause that is often added to the agreement between you and the seller. This home inspection contingency clause gives you the right to conduct a detailed inspection within a specified timeframe. Once you add this clause into the purchase agreement, you get the right to either negotiate with the seller, ask for the repairs, or even back out of the deal. Your decision depends on how serious the issues found during a home inspection.
Example of a Home Inspection Contingency Clause
The home inspection contingency clause can differ from state to state. But here’s a general idea about what you might get to see in a typical home inspection contingency:
“Under this agreement, the buyer is obligated to carry out a buyer’s inspection of the property. The buyer has the right to perform a property inspection within seven days of the accepted offer.
In case the buyer is not satisfied with the property’s condition after the inspection, they need to notify the seller of the unsatisfactory condition within a day of getting the inspection report. They may ask the seller to fix the issues.
If both the parties can’t agree on mutual terms and conditions, the buyers may terminate the sale, or they may decide to proceed ‘as-is’.”
Often, the home inspections are negotiated between both parties (the buyer and the seller). Most of the time seller agrees to make repairs. Other times, the seller offers the buyer a concession in the buying price.
However, if it is a seller’s market, the sellers decide to get away with the issues and do nothing about them. In this case, the good side for the buyer is that they don’t buy a property that would have brought different costly issues up in the future.
The Importance of A Home Inspection Contingency Clause
A home inspection contingency more likely works in the buyer’s favor. It lets you have a tour of the property with a home inspector’s professional eye – assessing every nook and cranny of the property. Besides this, the contingency has other advantages to offer you as well, some are discussed below.
Revealing Hidden Flaws and Issues
Firstly, a home inspection lets you have an idea about all the hidden issues or flaws within the property. An expert home inspector assesses your property to see issues like leaks, defective wiring, or structural damage that are not visible to an untrained eye. With this, you can avoid any unexpected costs and potential safety hazards by learning about what’s coming your way once you buy the property. You can also demand the seller for repairs or negotiate for a lower price that covers all the needed repairs.
Peace of Mind
A home inspection contingency also offers you peace of mind. It’s definitely stressful to make as major an investment as buying a home, and that too, being unaware of the property’s condition. A home inspection can assure you that the choice you made for buying a home is either good or bad. You can comfortably move forward with the home purchase, knowing that your home is in good condition and the inspector hasn’t found any significant issues. But, if the inspector finds any issues, then it is on you to either cancel the deal or request repairs.
Save Money in the Long Run
With a home inspection contingency, you can save money big time. The price of an inspection depends on different factors, like the size and location of the property. But even then, it doesn’t cost an arm and a leg as compared to the possible expense of addressing hidden issues after buying the property. Without a home inspection contingency clause, you might be expected to pay for the repairs that can range from hundreds of dollars to thousands of dollars.
Protecting Your Investment
A home inspection contingency helps protect your investment. Real estate contracts are legally bound in the court, and once the deal is close, you’re liable for any of the issues that arise in the house. With a home inspection in place, you can make sure that you’re making an informed decision by adding a home inspection contingency clause in the contract. If the inspection shows serious issues, again, you can decide to cancel the deal and ask the seller to make the repairs or negotiate for a lower selling price.
Conclusion
If you’re buying a property in Methuen, it’s better to get the home inspection contingency as a part of your home-buying process, no matter how competitive the conditions are. With the benefits this clause offers, you can ensure that you’re not investing just in the “appeal” of the property but for its structural integrity and reliable features.
It’s fair to say that the home inspection contingency is the best way to protect you from surprising issues and expenses and ensure that you’re aware of the property’s condition before finalizing the deal.
Don’t leave your biggest investment to chance. Schedule a comprehensive home inspection with RJ Home Inspections today and gain peace of mind knowing your home is safe, secure, and in top condition. Our experienced inspectors provide detailed, easy-to-understand reports and actionable insights to help you make informed decisions.