A contingency is a condition. When you make an offer with the inspection contingency in tact, you are saying: I want to buy this house, but I have the right to investigate it AND if I find something that I find is a deal breaker, I can cancel the agreement without consequence.
Inspection Contingency
Buyer's need to know everything they can about the house before the sale is finalized. There is a period of time (usually 17 days but can be longer or shorter), where the buyer has access to the property to visually inspect the house and land. This prepares the buyer to request repairs or plan on how they can remedy the situations themselves if there are issues. But, it also allows the buyer to back out of the deal if they find something in their investigations that they can not or will not repair. Once the buyer has completed all inspections and is satisfied with the contract and repairs, they will remove the inspection contingency. After the inspection contingency is removed, by contract, the buyer should not back out of the deal due to something on the inspection.
The two main inspections that are recommended by real estate brokers are the home inspection and the termite inspection.
The Home Inspection
The home inspection consists of inspecting all systems of a house by a licensed professional who is trained to see and point out issues in a home. The buyer will generally pay for this inspection during the inspection period. The cost is usually based on type of home and square footage.
It is important to hire a home inspector you trust. If you are unsure, the realtor you are working with will usually have experience with a few home inspectors. Make sure to get a few options and look into each company to make sure they are the one you want to hire.
Real Time Home Inspections* is a California home inspector who services the central valley. Here is a blurb from Greg Marty, the home inspector, about the importance of a home inspection:
"Why get a home inspection? For most people, their home is the single largest investment they'll ever make. Hiring a home inspector will help you determine the overall condition of that investment in Real Time. Think of a home inspection as an unbiased, third-party view of all the systems of a home. Top priority is given to finding any health and safety issues that may exist and who to contact for corrections or repairs. At the end of the day, a home inspection is peace of mind." --Greg Marty, Real Time Home Inspections, 559-593-5401
A home inspection can also help prompt you to hire a different type of inspector based on the home inspector's findings. For example, the home inspector will sometimes look at the roof if its accessible and point out any obvious defects. But, they will recommend you hire a roof inspector for a full roof report from a licensed roofer.
The small investment you make in a home inspection, can save you thousands of dollars from unexpected repairs/issues later. It is definitely worth the price.
The Termite Inspection
A termite inspection is performed by a licensed inspector to look for any evidence of live infestations of different types of termites and other wood destroying organisms and to point out any potential risk factors for wood destroying pests (like termites). The buyer is usually responsible for paying for this inspection during the inspection period, the cost varies from company to company.
A termite inspection is highly recommended as even the cleanest, well maintained home can have termites that the home owner is not aware of. Many home owners think that if they have regular pest control services, that they are in the clear. This is untrue! Regular pest services do not cover termites or subterranean termites (underground termites).
The inspector is trained to find these issues and are even able to fix them. Even newer homes can have termites. Getting an inspection lowers your risk of unexpected costs later from a termite infestation or other kind of wood damage.
Holly Covey-Wadham is a licensed California Termite Inspector who services the Central Valley with H&M Termite and Repairs*. Here is a blurb from her about Termite Inspections and their importance:
"It is estimated that: Approximately 600,000 homes are damaged by termites in the US each year. Each year, termites and similar pests cause an estimated $30 billion in damage to crops and man-made structures, homes, buildings and businesses. In a home, if left unchecked, termites alone can cause damage unseen and seen and owner can expect to spend an average around $3,000 to repair damage or do treatments. Also there can be fungus rot damage, water damage, leaks underneath the home Etc..
At H & M Termite & Repairs we recommend having a termite inspection when you purchase a home, or on a yearly basis. Some will ask why? As mentioned above, termites can cause damage quickly. The sooner you discover termites and take care of the problem, the less of a headache it will be down the road!
Some people will call it a “pest inspection“ however it is a WDO/WDI Termite inspection, When we come out to do an inspection, we look to identify any type of wood destroying pest or organism, that would be termites, fungus rot, water damage, or anything that can lead up to an infestation or infection, those would be condition conducive, stucco crack’s, plumbing leaks, Earth to wood contact Etc.
At H&M Termite and Repairs we provide a full written report with color photos and prices to do all of the items found. We also do free competitive bids! We have a construction company as well, we not only do the termite work, treatments and fumigation but we also can do Home inspection repairs, appraisal repairs, fences and more! We are licensed through the State of California, bonded and insured! We are a small family company, Holly is the owner and termite operator, and along with her husband Matt who owns Bent Nail! We are here to help with all of your termite and repair needs!"--Holly Covey-Wadham, H&M Termite & Repairs, 559-396-0710
There are many other types of inspections you can get. A/C, sewer line, pool/spa, and the ones named above are just a few.
As with anything in a real estate transaction, the buyer can negotiate with the seller to pay for some reports or repairs. However, the seller has no obligation to do so. So, the buyer needs to know as much as they can about the property to make a good decision on whether or not they wish to complete the purchase.
If you have any further questions about inspections or the inspection contingency. Message me or give me a call. 559-978-2413
Kelly Brennan
DRE02106427
Ironwood Properties
kelly@kellybrennanrealtor.com
*these are independent companies. I recommend you research, on your own, each company in consideration before making a decision on hiring an inspector.
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