Worth It?

Guide

The Home Inspection Contingency, Explained

What the contingency is, how long it lasts, what's in scope, how to respond, and when (or whether) to waive it. Written for buyers, not lawyers — but worth running by your agent and the contract you actually signed.

What is an inspection contingency?

An inspection contingency is a clause in your purchase agreement that gives you the right to inspect the property within a defined window and to back out — or renegotiate — if you find something you don't like. As long as you follow the rules in your contract, your earnest money comes back to you if you withdraw.

It is, simply put, one of the most powerful protections a buyer has. Without it, your earnest money is at risk the moment your offer is accepted. With it, you have a window to discover what you're actually buying and to course-correct.

How long is the contingency period?

Most purchase agreements give buyers 7 to 14 calendar days from the binding agreement date. A few state-specific defaults to know:

  • California — the standard CAR contract gives 17 days for buyer investigations (inspection, appraisal, loan).
  • Texas— uses an "option period" instead of a contingency. Typically 5-10 days, separately paid for ($100-$500), with an unconditional right to terminate.
  • Florida — the AS-IS rider is the most common contract; inspection period typically 10-15 days.
  • Michigan — 7-14 days is typical; the exact length is whatever the purchase agreement says.

Read your contract. The number printed there is the number that matters, not what's typical in your state.

The clock starts at the binding agreement date — the moment the seller accepts your offer, not the moment you wrote it. In most states the days are calendar days, including weekends and holidays. Schedule your inspection within 48 hours of acceptance if you can.

What's actually inspected — and what isn't

A general home inspection covers what is visible and accessible on the day of the inspection. That includes:

  • Roof, gutters, chimney (from the ground or accessible roof)
  • Foundation and visible structural components
  • Electrical panel, wiring, outlets (sample)
  • Plumbing fixtures, water heater, visible pipes
  • HVAC operation and basic safety
  • Exterior walls, windows, doors, grading, drainage
  • Interior walls, ceilings, floors, doors, stairs
  • Attic and crawl space (if accessible)
  • Built-in appliances

What a general inspection does not include:

  • Destructive or invasive testing (no opening walls)
  • Behind-the-wall plumbing or electrical
  • Sewer line condition (no scope camera)
  • Lead paint testing
  • Mold testing or air quality
  • Radon testing
  • Asbestos testing
  • Termite or other pest inspection
  • Structural engineering opinion on cracks or movement
  • Pool and spa equipment (in most regions)

If your inspector flags something they recommend "further evaluation by a qualified specialist," that's your cue to add a specialty inspection — and the contingency window covers it, as long as you act quickly.

Specialty inspections worth considering

  • Sewer scope — $200-$400. Camera goes from cleanout to the city main. Catches root intrusion, collapsed pipes, illegal taps. Sewer line replacement is a $4,000-$15,000 problem; you want to know before you sign.
  • Radon — $150-$300. Two-to-four-day passive test. Mandatory in some markets; smart in any market with basements.
  • Mold — $300-$800. Visual + air sampling. Worth it if the inspector found water damage, musty smell, or visible growth.
  • Termite / pest — $75-$200. Required by VA loans, often required by FHA. Smart in any wood-frame home.
  • Structural engineer — $500-$1,500. The right call for horizontal foundation cracks, stair-step cracks in block walls, and any sign of differential settlement. See the Foundation Crack Calculator for which cracks warrant the call.
  • Chimney — $100-$300. Level 1 sweep + camera. Worth it for any wood-burning fireplace.

Four ways to respond during the contingency

  1. Accept as-is and proceed.The inspection was clean or the items are minor enough that you'll absorb them. No further action required; the contingency simply expires.
  2. Request specific repairs. Submit a written list of items you want the seller to fix before closing. The seller pays a contractor; you verify the work pre-close. Best for items that must be done before move-in (no heat, active leak, FHA/VA-blocking issues).
  3. Request a seller credit. Ask for a dollar amount applied to closing costs instead of physical repairs. You pick the contractor after closing. Better than asking for repairs in most cases. Use the Seller Credit Calculator to set the number.
  4. Withdraw.Notify the seller in writing within the contingency window. Earnest money returns to you. The contingency exists for this case — major structural, environmental, or systems issues that change what you're actually buying.

How to withdraw without losing your earnest money

The mechanics matter. Get this wrong and you can lose the money.

Procedural guide, not legal advice.Your contract's specific terms control. If money is on the line and you're unsure, call your agent or a licensed real estate attorney before acting.

  • Notice must be in writing.Email through your agent is usually fine; some contracts require a specific form. Verbal doesn't count.
  • Notice must arrive before the contingency expires. If the window closes at 11:59 PM on day 10, your notice has to be delivered before that. Don't wait until the last day.
  • Follow your contract's procedure exactly. Some contracts require notice to the listing agent, some to the seller's attorney, some to both.
  • Keep a paper trail.Save the inspection report, the email confirmations, the read receipts. If the seller disputes the cancellation, you'll need the documentation.

When buyers waive the contingency

In competitive markets, buyers sometimes waive the inspection contingency to make an offer stand out. This is a real and growing practice — and a real and growing risk.

The danger: any latent defect found after closing becomes your problem. If the foundation has a horizontal crack you didn't discover because you waived the inspection, that's $15,000 you paid for without realizing it.

A few compromises that keep you competitive without fully waiving:

  • Information-only inspection.You inspect, but agree not to request repairs or credits. You retain the right to walk away if something serious turns up — and that's what usually matters.
  • Shortened window. Cut it to 3-5 days instead of the standard 7-14. You still get the protection; the seller gets a faster path to closing certainty.
  • Pre-inspection. Inspect before writing the offer. Often allowed in hot markets. You go in eyes-open and can write a stronger offer because you already know the condition.

Full waiver is a bet that the home has no significant hidden defects. For new construction, that bet is often safe. For a 50-year-old home with original mechanicals, it isn't.

Common mistakes to avoid

  • Scheduling the inspection too late. Book it within 48 hours of acceptance. The longer you wait, the harder it is to add specialty inspections or extensions.
  • Asking for everything. A laundry list of cosmetic items dilutes the urgency of the real ones. Decide what matters and cut the rest.
  • Not getting specialty inspections when warranted. If the inspector wrote "recommend further evaluation by a qualified specialist," do it. That sentence is the inspector saying "this is above my pay grade."
  • Missing the deadline. The contingency expires on a specific calendar date. Put it on a calendar with a 48-hour warning.
  • Verbal-only communication.Every request, every counter, every withdrawal goes in writing. Texts and emails are acceptable in most cases; phone calls aren't.

Once you have your inspection report — make it work for you.

The contingency window is short. WIT reads your inspection PDF and turns it into actionable findings: cost estimates, decision tags, a sticky budget summary, and a complete negotiation letter at the end. One analysis is $29.95 — the cost of a few contractor coffees, and a lot less than a missed deadline.

Analyze my inspection report — $29.95

Frequently asked questions

How long is a typical home inspection contingency?

Most purchase agreements give buyers 7-14 calendar days from the binding agreement date. California's standard CAR contract uses 17 days. Texas uses an option period instead. Your contract is the only number that actually applies to you.

Do I get my earnest money back if I cancel during the contingency?

Yes, in almost every case — provided you cancel in writing within the contingency window and follow the notice procedure in your contract. Cancel after the window closes and you may forfeit some or all of the earnest money.

Should I waive the inspection contingency?

In hot markets some buyers waive to make their offer competitive. The risk is real — any defect found after closing becomes your problem. Better compromises: shorten the window to 3-5 days, or keep the right to withdraw but waive the right to request repairs.

What does a home inspection actually cover?

A general home inspection covers visible and accessible systems: roof, foundation, structural, electrical, plumbing, HVAC, exterior, interior, insulation, and appliances. It does NOT include destructive testing, lead paint, mold, radon, sewer scope, pest inspection, or a structural engineer's opinion — those are separate specialty inspections.

Can I extend the inspection contingency?

Sometimes. Both parties have to agree in writing. Sellers will often grant a short extension if you have a legitimate reason — a specialist visit, a delayed report. They rarely grant open-ended extensions.

Related resources

This guide is general information and is not legal advice. Real estate contracts vary by state, jurisdiction, and the specific agreement you signed. For questions about your contract or your specific situation, consult your real estate agent and, where applicable, a licensed real estate attorney.