Buyer Step 12 - What is An Inspection Contingency Notice?

April 29, 2021

Step 12

Navigating Inspection Outcomes: Crafting Your Contingency Notice

As the curtain falls on the home inspection, Step 12 unfurls the Inspection Contingency Notice, a pivotal addendum to the purchase-and-sale agreement. This notice signals to the seller that the inspection is complete and outlines your course of action within the specified timeframe. Failure to submit this notice in time relinquishes your right to demand property issue resolutions.


Your Options in the Contingency Notice:


  • Remove Contingency: If satisfied, you can proceed by removing the inspection contingency.
  • Requests for Resolution: Dissatisfied? You can opt for various requests, such as:
  • A reduction in the asking price to a specified amount.
  • A repair credit provided at closing.
  • Specific services, repairs, or replacements to be executed by the seller before closing.
  • Contract Termination: If the property proves unsatisfactory, you reserve the right to terminate the contract without requesting repairs or credits.


Navigating Negotiations:


Repair credits and price adjustments can be mutually beneficial. Sellers may prefer these options, avoiding the complexities of repairs, while buyers can oversee fixes to meet their standards. Our collaboration with your loan officer ensures informed decisions regarding price adjustments or repair credits.


Interactions with the Seller:

A meeting is scheduled with the seller or their agent to elucidate the scope and cost of inspections. The seller holds the cards, choosing to accept, reject, or negotiate repairs, especially for substantial issues like electrical faults or foundation cracks.


Seller's Response:


Acceptance: If the seller accepts the contingency notice, whether by committing to repairs, a repair credit, or a price reduction, the contract remains intact.


Rejection or Alternative: The seller may propose alternatives. You can:

  • Reject, preserving your earnest money and terminating the contract.
  • Accept the alternative.
  • Continue with the contract, acknowledging the seller won't perform repairs.


This negotiation dance may continue until a common ground is found, or a decision is made to part ways. Emotions can soar, fueled by the seller's emotional connection to the property and the inspector's meticulous scrutiny. Your Realtor® becomes a crucial mediator, objectively steering the process to safeguard your interests and maintain the deal's integrity. In this intricate performance, we skillfully navigate each step, orchestrating a seamless transition toward the realization of your homeownership dream.

Home Negotiations
SEE ALL 21 STEPS
21 BUYER STEPS

FREE DOWNLOAD

TO PURCHASE A HOME
Get the full PDF download
DOWNLOAD
By Bonners Ferry Herald September 18, 2024
Best Realtor - 1st Place Best Commercial Realtor - 2nd Place Best Real Estate Agency - Century 21 Four Seasons - 2nd Place
September 16, 2024
Step 10 - You've Sold Your Home!
By James Greenslitt April 24, 2025
REDUCED - Level and Open 10 Acre parcel on the North Bench!
By Adriana Rice April 24, 2025
NEW - Move to Your perfect private Idaho Retreat with Mountain & River Views!
By Jim Greenslitt April 24, 2025
NEW - Desirable 4 bed 3 bath home on the North Bench with 3 car Attached Garage!
By Kirsten Madden April 22, 2025
NEW - Self Sufficient Off Grid retreat on 43.70 Acres!
By Kirsten Madden April 22, 2025
NEW - 3.03 Build-Ready Acres in the Heart of North Idaho!
By Kirsten Madden April 22, 2025
NEW - AVAILABLE AT AUCTION SITE ONLY! AUCTION OPENS APRIL 21ST
By Adriana Rice April 21, 2025
NEW - 2 bed 1 bath home on 3.16 acres set up for horses and stunning mountain views!
By Jim Greenslitt April 17, 2025
NEW - 3 Bed 2 Bath home on 40.52 acre Horse Property!
By Adriana Rice April 16, 2025
PRICE REDUCED - Live on a private road in a beautiful custom home on 1.25 acres!
By Kirsten Madden April 16, 2025
PENDING - 3 bed 2 bath home built in 2019 on 0.97 acre in Moyie Springs!
Show More

Share This: