A home inspection contingency is a central part of many (but certainly not all) real estate contracts -- but it’s also a part of the process that buyers and sellers can unintentionally misunderstand, especially if it is your first time buying or your first time selling.

Buyers: Don’t assume that the inspection gives you an automatic chance to renegotiate the price. If legitimate issues are uncovered -- safety concerns, structural problems, major repairs, etc. -- it’s likely reasonable to ask the seller to address those issues or to offer you a credit to allow you to address the deficiencies after settlement. But the inspection isn’t meant to be a second round of negotiating the price down. If you agreed to a purchase price up front, you should expect to move forward at that price unless the inspection reveals something unexpected and significant.

Sellers: Don’t assume that nothing will come up during the inspection or that you won’t be asked to make any repairs or concessions. Some property deficiencies exist in almost all homes, even well-maintained homes.  Be prepared for the possibility that a buyer may request repairs or a credit -- and keep in mind that this is a normal part of the process, not a personal critique of your home or how you have cared for it.

The home inspection period (if your contract allows for one) is a time for further discovery and, if necessary, some further negotiation based on new findings. Buyers and sellers who stay flexible and realistic through this contingency tend to have the smoothest path forward through and beyond that negotiation.