ID-100325163When purchasing a home especially during heated seller’s real estate market a home buyer or his/her selling agent may recommend submitting an offer with no home inspection contingency. However, a buyer may want to conduct the home inspection informational purposes only. 

What does “home inspection for informational purposes only” mean? 

It means you as a purchaser will hire a home inspector. However, the finding or any issues noted during the home inspection will be non-negotiable. The sellers won’t correct and you will purchase the home AS IS.

With the “Home inspection for informational purposes only can I void the contract?”

No, you cannot void the contract based on the home inspection since you submit and ratified the offer based on no home inspection contingency.

Can you submit an offer with “Home inspection for informational purposes only with a kick out clause?”

Absolutely!! What the above means is as a purchaser you will conduct a home inspection for information purpose only with a right to void the contract. If you come across any major issues you will void the contract and get your deposit back. This is a good happy medium for both the parties.

From a seller’s perspective, what are the pros and cons of selling a home “Home Inspection for information purpose”?

The obvious benefit of selling the home without a contingency helps sellers not to deal with renegotiating the contract terms and/or make repairs that will cost the home sellers.  Any expensed incurred can cost the bottom line plus the headache of dealing with the contractors. 

On the flip side as home sellers, if you do learn about any material defect after the buyers have discovered during the inspection you will be responsible for disclosing to the next buyers if you void the contract with the current buyer. For example, you learned the home has a higher level of Radon. If you void the contract for any reason you will have to disclose the radon issue to the next buyer irrespective you selling the home AS IS or with no home inspection. 

How do I decide if I should have a home inspection contingency or a home inspection for information purpose only?

Depending on your real estate market and/or your contract situation. I have seen many times on a newly build home, buyers offer an incentive to purchase the home with home inspection for information purpose only. Other times when the market is a seller’s market in order to win a bid to purchase a home (multiple offers) buyers may submit the offer waiving home inspection.  Other times when we are dealing with foreclosure homes in Virginia or a short sale deal in the Northern Virginia area buyer may submit with home inspection for information purpose only.




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