You can’t change your mind on a home after closing, but you can rethink the deal after the inspection. When a report turns up more than you planned for, it’s normal to wonder if this is still the right house at the right price.
But when to walk away after a home inspection can be personal. We’ll help you weigh the risks of repairs, factor in your budget and timeline, and ultimately, decide when it’s best to trust your gut — whether you’re buying a home in Madison, WI or Sacramento, CA.
First, protect yourself with a home inspection contingency
A home inspection contingency is the safety net for homebuyers. It says, in writing, that you can inspect the property within a set window and either renegotiate repairs/credits or cancel and recover your earnest money if you want to walk away after the home inspection.
In a lot of markets, buyers have between 5-10 days to get the home inspected and get back to the seller. If you want the option to walk away after the inspection without legal or financial risks, a home inspection contingency is highly recommended.
What should your contingency cover?
- Clear response deadline. Your contract will state how the “days” are counted (calendar vs. business days). Note this and set reminders.
- Buyer’s sole discretion to cancel. Strong inspection clauses let you withdraw after the home inspection and keep your earnest money, as long as you give notice on time and as the contract states.
- Right to seek further evaluation. If the inspector notes foundation, roof, electrical, plumbing, or moisture issues, you may want to bring in specialists and get repair estimates.
- Repair/credit options. Ask your real estate agent to include that you may request seller credits at closing (they can be cleaner than pre-close repairs) or a re-inspection if the seller completes the repairs.
Know when to walk away after a home inspection
A home inspection is when a licensed inspector…