The inspection contingency is your window to investigate the home and decide how to proceed. The inspection report is your roadmap — it tells you what to negotiate, what to investigate further, and occasionally what should make you walk away.
What to do when the report arrives
- Read the full report, not just the summary.
- Sort issues into safety/structural, functional, and cosmetic.
- Get repair estimates for major items.
- Order specialty inspections (sewer, roof, foundation) if flagged.
- Decide your ask: repairs, credit, price reduction, or proceed.
- Submit your request in writing before the contingency expires.
Repairs vs credits vs price reduction
- Repairs: seller fixes items before close — good for safety issues.
- Credit: seller credits money so you control the work after close.
- Price reduction: lowers your loan basis and may be cleaner.
- As-is: you accept the condition, often in exchange for a stronger position.
When the report is a deal-breaker
Major foundation, structural, or systemic issues with large, uncertain costs can justify cancellation within your contingency window. Use estimates, not guesses, to decide. Where a number varies, confirm current figures for your transaction.
This is general information, not legal, tax, or financial advice — consult a licensed professional for your situation.
Keeping it productive
Focus negotiations on health, safety, and big-ticket systems rather than every cosmetic nitpick. Reasonable requests are more likely to be accepted and keep the deal alive.
Protecting your deposit
As long as you act within the inspection contingency window, you generally retain the right to cancel and recover your earnest money. Don't let the deadline pass without a written response.
Building your inspection response
Turn the report into a clear, prioritized written request before your deadline. Lead with safety and major systems, attach estimates, and keep the tone collaborative to keep the deal alive.
Frequently Asked Questions
What can I do after the home inspection?
Request repairs, ask for a credit or price reduction, order more inspections, proceed as-is, or cancel within the contingency window.
Should I ask for repairs or a credit?
Credits give you control over the work and timing; repairs ensure safety items are fixed before close. The right choice depends on the issue.
Can I cancel after a bad inspection?
Yes, generally, if you act within the inspection contingency period and follow the contract's cancellation process.
How long is the inspection contingency?
Often around 17 days by default in California, but it is negotiable. Where a number varies, confirm current figures for your transaction.
Who pays for the inspection?
The buyer typically pays the inspector's fee. Where a number varies, confirm current figures for your transaction.
Should I sweat cosmetic issues?
Generally no — focus negotiations on safety and major systems for the best outcome.
