HOME INSPECTION CONTINGENCIESSeptember 26, 2008
When purchasing a luxury home, you should hire a professional home inspector to examine all the basic systems and structures of the home. The inspection report will be your only documented proof of the actual condition of the property.
Your offer should include a contingency stating what will happen if material defects are discovered that affect the market value of the property. If a significant defect is discovered during the inspection process, you as the buyer should get estimates from several contractors to determine how much it will cost to correct the problem.
The period of time needed to complete the inspection should be specified in the purchase agreement, usually 10 days. This time frame allows you to either withdraw, or enter into a re-negotiated contract if the inspection reveals serious or consequential material defects that were undisclosed prior to signing the contract.
Having a home inspection usually addresses–and overcomes–your misgivings, fears, and buyer’s remorse, and confirms your decision to move ahead with the purchase.