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.
- 5 Bedrooms
- 4 Bathrooms
- 5,700 Sq Ft
- 6.100 Acres
938 E Jasper Dubois Road Jasper, Indiana
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Listing courtesy of Kevin Bayer from RE/MAX Local.
- 4 Bedrooms
- 4 Bathrooms
- 3,906 Sq Ft
- 0.595 Acres
3289 St Charles Street Jasper, Indiana
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Listing courtesy of Annette Wigand from ERA FIRST ADVANTAGE REALTY, INC.
- 3 Bedrooms
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- 3,376 Sq Ft
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1928 S A St. Jasper, Indiana
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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.
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- 4 Bathrooms
- 2,986 Sq Ft
- 1.482 Acres
4536 W 150 N Jasper, Indiana
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Listing courtesy of Stacey Thieman-Wright from THIEMAN REALTY.
- 3 Bedrooms
- 3 Bathrooms
- 4,376 Sq Ft
- 0.590 Acres
836 W 20th Street Jasper, Indiana
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Listing courtesy of Elizabeth Mehringer from RE/MAX Local.
- 4 Bedrooms
- 3 Bathrooms
- 3,610 Sq Ft
- 1.300 Acres
1245 W 6th Street Jasper, Indiana
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Listing courtesy of Steve Wigand from ERA FIRST ADVANTAGE REALTY, INC.
- 3 Bedrooms
- 2 Bathrooms
- 1,468 Sq Ft
- 0.314 Acres
1911 S A St. Jasper, Indiana
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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.
- 3 Bedrooms
- 2 Bathrooms
- 1,829 Sq Ft
- 0.346 Acres
1761 Sugar Pine Drive Jasper, Indiana
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Listing courtesy of Ryan Craig from RE/MAX Local.
- 3 Bedrooms
- 2 Bathrooms
- 2,374 Sq Ft
- 1.740 Acres
582 E 36th Street Jasper, Indiana
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Listing courtesy of KaraHinshaw from Key Associates Signature Realty.
- 3 Bedrooms
- 2 Bathrooms
- 2,403 Sq Ft
- 0.287 Acres
1371 W 5th Street Jasper, Indiana
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Listing courtesy of Tama Stemle from RE/MAX Local.
- 4 Bedrooms
- 2 Bathrooms
- 2,532 Sq Ft
- 0.170 Acres
1429 Jackson Street Jasper, Indiana
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Listing courtesy of Courtnay Begle from RE/MAX REVOLUTION.
- 3 Bedrooms
- 2 Bathrooms
- 2,322 Sq Ft
- 1.450 Acres
244 W State Road 56 Road Jasper, Indiana
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Listing courtesy of Stacey Hurst from RE/MAX REVOLUTION.
- 3 Bedrooms
- 2 Bathrooms
- 1,564 Sq Ft
- 0.344 Acres
306 Reyling Drive Jasper, Indiana
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Listing courtesy of Zach Holt from Whitetail Properties Real Estate.
- 3 Bedrooms
- 2 Bathrooms
- 3,520 Sq Ft
- 0.680 Acres
4828 N US 231 Highway Jasper, Indiana
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Listing courtesy of Kevin Bayer from RE/MAX Local.
- 3 Bedrooms
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- 0.460 Acres
888 Susanna Avenue Jasper, Indiana
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Listing courtesy of Gina Mehringer from F.C. TUCKER EMGE.
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Newest Homes for Sale in Dubois County
View the newest homes listed in Dubois County in the last 10 days:
888 Susanna Avenue Jasper, Indiana
3 Beds 1 Baths 1,538 SqFt 0.460 Acres
Listing courtesy of Gina Mehringer from F.C. TUCKER EMGE.
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Listing courtesy of VeraGreven from Fathom Realty IN, LLC.
103 E Northview Dr. Huntingburg, Indiana
3 Beds 2 Baths 1,910 SqFt 0.288 Acres
Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.