Home Inspection Contingency 2026
What it covers, how to use it to negotiate, and when waiving it is (and isn't) a good idea.
Sarah Mitchell
NMLS #123456 · Senior Mortgage Advisor & Real Estate Strategist
12 years advising buyers on contract contingencies and negotiation strategy. Helped buyers save an average of $6,400 through strategic inspection contingency use.
Quick Answer
A home inspection contingency gives you the right to inspect the property and either request repairs, negotiate a price reduction, get a seller credit, or walk away with your earnest money back — all within a set window (typically 7-14 days). It's one of the most important protections in a real estate contract. 86% of home inspections uncover at least one issue; the average repair cost found is $14,000. → Get pre-approved so you can negotiate from strength.
How the Inspection Contingency Works — Step by Step
Offer accepted
Your purchase contract is signed. The inspection period clock starts.
Schedule inspection
Hire a licensed home inspector. Cost: $300-$500 for a standard inspection. Attend in person.
Inspection completed
Inspector spends 2-4 hours examining the property. You receive a written report within 24-48 hours.
Review report & decide
Review findings with your agent. Decide: request repairs, ask for credit, accept as-is, or cancel.
Submit repair request (if any)
Your agent submits a formal repair request or addendum to the seller. Negotiation begins.
Contingency deadline
If you haven't formally waived or addressed the contingency, you can still cancel and get earnest money back.
Move forward or cancel
Once you sign a repair agreement or waive the contingency, you're committed. Canceling after costs you earnest money.
What a Home Inspector Checks
Roof & Exterior
- •Roof condition, age, missing shingles
- •Gutters and downspouts
- •Siding, trim, fascia
- •Driveway and walkways
- •Grading (water drainage away from foundation)
Foundation & Structure
- •Foundation cracks or settling
- •Structural walls and beams
- •Crawl space condition
- •Basement moisture/water intrusion
- •Floor levelness
Electrical
- •Panel capacity and condition
- •GFCI outlets in wet areas
- •Wiring type (aluminum wiring is a concern)
- •Smoke and CO detectors
- •Visible junction boxes
Plumbing
- •Water pressure and flow
- •Pipe material (lead, galvanized, PVC)
- •Water heater age and condition
- •Visible leaks under sinks
- •Toilet function
HVAC
- •Furnace/AC age and condition
- •Ductwork condition
- •Filter condition
- •Thermostat function
- •Chimney and fireplace (visual)
Interior
- •Windows and doors operation
- •Attic insulation and ventilation
- •Signs of water damage on ceilings/walls
- •Staircase safety
- •Garage door safety features
Your 4 Options After the Inspection
1. Request Repairs
Best when: Safety issues, major systems (roof, HVAC, electrical)PRO
Problem fixed before you move in
CON
Seller may use cheap contractor; delays closing
PRO TIP
Specify licensed contractor required in your request
2. Price Reduction
Best when: Cosmetic issues, items you want to choose yourselfPRO
You control the repair quality and timing
CON
Reduces purchase price (affects appraisal if large)
PRO TIP
Get contractor estimates before requesting a specific amount
3. Seller Credit at Closing
Best when: Any repair items; most flexible optionPRO
Cash in hand at closing; you choose contractor
CON
Lender must approve; may have limits (3-6% of price)
PRO TIP
Most flexible — preferred by experienced buyers
4. Walk Away
Best when: Major structural issues, foundation problems, undisclosed defectsPRO
Full earnest money refund; avoid a money pit
CON
Start house hunting over
PRO TIP
Always better than buying a house with $50K+ in hidden problems
Negotiate from strength — get fully pre-approved before making an offer.
Sellers take pre-approved buyers more seriously. Takes 3 minutes, no SSN required.
Should You Waive the Inspection Contingency?
Never waive if:
- ✗The home is 20+ years old
- ✗You see any visible issues (cracks, stains, old roof)
- ✗You're a first-time buyer without construction knowledge
- ✗You're stretching your budget — repairs could break you
- ✗The home has been vacant or foreclosed
- ✗The seller is refusing to disclose information
May consider waiving if:
- ✓New construction with builder warranty
- ✓You're a contractor or have deep construction knowledge
- ✓You've done a pre-offer walkthrough with your own inspector
- ✓Extremely competitive market (multiple offers, cash buyers)
- ✓The home was recently renovated with permits pulled
- ✓You can afford significant repairs without financial stress
Ready to Make a Confident Offer?
Get pre-approved so you can move fast when you find the right home. Compare rates from multiple lenders in minutes.
Frequently Asked Questions
What is a home inspection contingency?
A home inspection contingency is a clause in a real estate purchase contract that gives the buyer the right to have the property professionally inspected within a set timeframe (typically 7-14 days). If the inspection reveals significant problems, the buyer can: (1) request repairs or a price reduction, (2) accept the property as-is, or (3) cancel the contract and receive their earnest money back.
Should I waive the home inspection contingency?
Waiving the inspection contingency is risky and generally not recommended for first-time buyers or buyers without construction knowledge. It may be considered in extremely competitive markets when you're an experienced buyer, the home is newly built with a builder warranty, or you've already done a pre-offer walkthrough with a contractor. Never waive it on older homes (20+ years), homes with visible issues, or if you're stretching your budget.
How long do I have to complete a home inspection?
The inspection period is typically 7-14 days from the date the contract is accepted, though this is negotiable. In competitive markets, buyers sometimes offer 5-7 days to make their offer more attractive. You must schedule the inspection, receive the report, and submit any repair requests within this window.
What does a home inspector check?
A standard home inspection covers: roof condition, foundation and structure, electrical systems, plumbing, HVAC (heating/cooling), insulation and ventilation, windows and doors, attic and basement, and visible signs of water damage or mold. It does NOT include: pest inspection, radon testing, sewer scope, mold testing, or pool/spa inspection — these require separate specialized inspections.
Can I negotiate after a home inspection?
Yes. After receiving the inspection report, you can: (1) Request specific repairs before closing, (2) Ask for a price reduction equal to the repair cost, (3) Request a seller credit at closing to cover repairs yourself, or (4) Walk away if issues are too severe. Sellers are not obligated to agree to repairs, but they must disclose known defects to future buyers if you walk away.