A home inspection is a required step in the home-buying process. Following the acceptance of a buyer’s offer, the buyer hires a licensed professional to inspect the wiring, flush the toilets, peer into the attic, and test the heating and air conditioning systems.
A home inspection seeks to identify significant issues such as water leaks, mold infestations, and cracks in support beams. Buyers frequently use the inspection as a bargaining chip in a buyer’s market or a balanced market. A running toilet does not affect the underlying safety and soundness of the home, but it does provide an opportunity for the buyer to request a repair or credit from the seller.
Meanwhile, the home inspection contingency is legalese that allows a buyer to back out of a deal.