What is a Home Inspection Contingency?

Published On: December 15, 2021|Categories: Blog, Buyers, Home Buyers|Tags: , |

What is a Home Inspection Contingency?

Real estate agents often build home inspection contingencies into their clients’ contracts. But what are they, and how does this type of contingency affect you?

What is a Home Inspection Contingency?

A home inspection contingency is a condition that real estate agents often include in their clients’ real estate purchase contracts. This condition says that if a home inspector discovers major issues with a home, the prospective buyer can change their mind about the deal and walk away.

Most buyers do hire a home inspector. It’s just smart to do so, because without a professional opinion on a home, buyers can’t really know what they’re getting into.

What Happens if the Home Inspector Finds Major Issues With the Home?

An inspector’s job is to examine all the major components of a home and look for issues that may affect the buyer’s enjoyment of the space, cost the buyer money to fix, or make the home uninhabitable. After an inspection, the inspector turns in a detailed report to the prospective buyer.

Buyers usually use these home inspection reports to negotiate with sellers. Whether the issues on the report are minor or major, buyers can ask sellers to lower the price, repair the issues, or offer them a credit so they can repair the issues themselves.

If an inspection report shows major issues that a buyer considers to be deal Breakers, the buyer can walk away from the transaction without penalty.

What Happens to a Buyer’s Earnest Money Deposit?

If the buyer’s real estate agent has built a home inspection contingency into the real estate purchase contract, the buyer can walk away with their earnest money deposit. In this case, the seller does not get to keep the earnest money.

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Popular Jasper, Indiana Home Searches:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Classic 3 Bedroom, 1 Bath home on Jasper's southeast side. Offers .89 acres and a full basement. $195,000 Pending

455 E Schnellville Road Jasper, Indiana

3 Beds 1 Baths 1,980 SqFt 0.89 Acres

Listing courtesy of Brian Uebelhor from SELL4FREE-WELSH REALTY CORPORATION.

This Elegant All-Brick Home offers 4 Bedrooms, 3 Baths, a RARE Walkout Basement, 2 Car Attached Garage, all Nestled in a peaceful setting. The beautiful kitchen, designed for both style and functionality, seamlessly connects to the open dining area, leading to a walkout deck—perfect for entertaining and grilling. A convenient main-floor laundry adds ease to everyday living. The master suite serves as a tranquil retreat, featuring a walk-in closet, double vanity and a beautiful walk-in shower. The modern walkout basement enhances comfort and entertainment with a Wet Bar with Island and Dishwasher, basement also includes a full bathroom, bedroom, and a theater room, complete with screen, seating, and projector. Step onto the tranquil patio, where a charming creek provides a serene backdrop, inviting you to unwind and embrace the peaceful surroundings. $420,000 Pending

4298 W Beringer Drive Jasper, Indiana

4 Beds 3 Baths 1,636 SqFt 0.48 Acres

Listing courtesy of Opal Sermersheim from SELL4FREE-WELSH REALTY CORPORATION.

This beautifully maintained 3-bedroom, 2.5-bath split-bedroom home is sure to impress. A charming covered front porch welcomes you into a spacious living room, which opens seamlessly into an expansive kitchen and dining area. The kitchen boasts abundant cabinetry, a breakfast bar, a walk-in pantry, and brand-new hardware and appliances. The oversized dining area is perfect for hosting large gatherings and offers picturesque views of the private backyard. The freshly updated walkout basement features new flooring and trim in the rec area, playroom and half bath.  The cozy woodburning stove, during the cold season, will be much appreciated.  The laundry room and storage rooms completed the basement.   Step outside to relax on the covered deck or patio—both overlooking the expansive backyard. Additional perks include a storage shed and a basketball goal by the front driveway, 2 car attached garage.  Some Recent Updates: 2025 most basement with laminate flooring, trim, front wall B-Dryed, Sump Pump. 12/24 Kitchen Appliances, Cabinet Hardware, HVAC 2023, Water Heater 2020 $359,700 Pending

1735 W 5th Street Jasper, Indiana

3 Beds 3 Baths 2,719 SqFt 0.82 Acres

Listing courtesy of Brenda Welsh from SELL4FREE-WELSH REALTY CORPORATION.