What Is an Inspection Contingency?

Welcome back to another episode of “Keeping in Tune With the Market.” Today’s question is: What is a home inspection contingency and how do I deal with it?

Buying a home? Search all Long Island homes on the MLS

Selling your home? Get a FREE home value report

Welcome back to another episode of “Keeping in Tune With the Market.” Today’s question is: What is a home inspection contingency and how do I deal with it? Imagine you’ve just found a great home or a great buyer for your home, and the time has come for the home inspection. A home inspection is usually done before an offer is made or accepted. A home inspection contingency is an addendum that is placed on a contract that states certain agreed-upon repairs must be completed within a given time frame. After a licensed home inspection company has completed the inspection, which takes about an hour, they will then submit a written report to the buyer. The buyer will turn the report over to the agent, who will then turn it over to the seller. Sometimes, structural or safety issues may be uncovered during the inspection. But it’s important to remember that not every item an inspector puts on the report is urgent. Some issues will just be cosmetic.

Not every item an inspector puts on the report is urgent.

But if there are major repairs, the buyer’s agent is going to make a repair request of the seller. A seller can obtain a second opinion from another professional at this point. Once the buyer and seller are made aware of the items on the inspection report, negotiations can begin. It’s critical that everyone approaches these negotiations reasonably. After everyone is in agreement, the seller must take care of the agreed-upon repairs prior to closing. The seller will need to provide the buyer with written receipts for any and all repairs. There is still the possibility of the contract being canceled by either party if they cannot reach a consensus on a given item. However, if the contract moves forward and all repairs are taken care of, then the inspection contingency will be removed. If a transaction is taking place between a good buyer and a willing seller, it’s best to take care of these issues as soon as possible. Additionally, if you’d like a free copy of our report on how to avoid 11 costly home inspection mistakes, send me a quick email at info@homesbydonovan.com or text me at (516) 822-1222. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Who Really Determines a Home’s Value?

A home’s actual value is determined by two people: the appraiser and the buyer. Here’s why this is.

Buying a home? Search all Long Island homes on the MLS

Selling your home? Get a FREE home value report

When you’re getting ready to buy or sell a home, you often wonder who really determines the actual value of a home and what the sales price will eventually be. There are basically two people who determine the value of a home. The first is the appraiser. The appraiser will look at similar sold properties within the last six to 12 months. If you want to get an idea of what the appraiser will consider, all you need to do is go online and look at similar properties that have sold in the area within a mile or so of where you’re looking and what they sold for. In addition to the appraiser, there is one other person who determines what the final sales price of a home will be. Can you guess who it is? It’s the buyer. The buyer will offer a price for the home based on comparables of other homes currently for sale on the market and what they feel the house is worth to them. 

“

The appraiser and the buyer are the two people who determine a home’s value.

”

You’ll notice there’s one person I didn’t mention—the seller. While they don’t determine the eventual sales price of the home, they can determine how long the home takes to sell. They do this in two ways. The first is by making sure the condition of the home is optimal. The second is by pricing their home properly in the beginning when they first list it. 

We want to thank Gina for sending in her great question. For that, she will receive a $15 gift certificate to Panera’s. If you submit a question and I cover it in one of my future videos, you can also win a $15 gift certificate. 

If you want to know more about determining the value of a home or you’d like a market snapshot to help you know the value of a home you’re thinking of buying or selling, give me a call or send me an email. Until next time, stay in tune with the market and make it a great day! 

Is Now a Good Time to Sell in Long Island?

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Value Report

You may ask, "Is winter a good time to buy or sell a home?" Our answer is emphatically yes, and we've got the reports to back up our answer.

We have a free report on selling your home during the winter. This guide is chock full of useful information, featuring topics like:

• 5 reasons to sell now
• How to get the most money from the sale of your home 
• 5 demands to make on your real estate agent 
• Home prices over the last year

Peruse this information while you enjoy a cup of coffee or tea. We'll tell you how to do everything from setting the right price to how to make your home stand out from the crowd. This guide gives you all the details that will lead you to the home of your dreams.

We also have a great report for buyers looking for a home during the winter. This guide covers the following topics and more:

• 4 reasons to buy a home now 
• Why you need to work with a professional when buying a home 
• What do you really need to do to qualify for a mortgage? 

Even though it may be a little chilly, grab one of our free guides, sit by a fireplace, and get insider tips on how to buy or sell during the winter season. Get a jump on all of those folks who are still waiting for spring. You could be enjoying your new place sooner than you think.

If you have any questions, give us a call or send us an email. We would be happy to help you!