![[Company Name] Logo](/images/logo.webp){kind=logo}
Inspections, Appraisals, and the Contingency Phase
The Stage Where Most Deals Get Tested
After an offer is accepted, the inspection and appraisal phase is where deals either move smoothly toward closing or get tested by findings, contingencies, and renegotiation. Strong representation matters here.
See What Your Home Is WorthThe Buyer's Property Inspection
Once your purchase agreement is signed, the buyer typically has a specified window to complete property inspections, secure their financing, and resolve any remaining contingencies. This is the phase where most deals get sideways — or get strengthened. How findings get handled determines whether the deal closes on the original terms, gets renegotiated, or falls apart entirely.
This guide covers what to expect during buyer inspections and appraisals, how to respond to findings, and the contingency framework that governs this stage.
Property Inspections
Most buyers hire a licensed property inspector to verify the property's condition matches what's described in the contract. Inspection timeframes are specified in the purchase agreement based on standard local practice.
Some buyers hire multiple specialized inspectors:
- General home inspector for overall condition
- Roof inspector for older properties
- HVAC, plumbing, or electrical specialists
- Pool or pest inspectors as relevant
Inspections almost always identify some issues — even on well-maintained properties. The question isn't whether issues will be found but how they get handled.
Have questions about handling inspections and appraisals? Complete the form .
Get In Touch
Appraisals and Lending
If the buyer is financing the purchase, the lender will require an appraisal by a licensed third-party appraiser. The appraisal determines whether the property's value supports the purchase price and loan amount.
Appraisers evaluate building condition, square footage, recent comparable sales, property amenities, and (for investment properties) operating income. If the appraisal comes in at or above the purchase price, financing typically moves forward. If it comes in below, the parties may need to renegotiate.
The Closing Agent
A title company or attorney serves as the closing agent (escrow agent). Their role is to examine the property's recorded history, confirm clear title (no leases, mortgages, or restrictions blocking transfer), and ensure the title transfers cleanly to the buyer at closing.
The closing agent also holds and disburses funds, coordinates document signing, and records the deed with the County Recorder's office to complete the transaction.
Contingencies
A contingency is a condition that must be met before a contract becomes legally binding for closing. Most purchase agreements include standard contingencies:
Inspection Contingency Buyer has the right to inspect the property and request repairs, credits, or termination based on findings.
Financing Contingency Buyer's purchase depends on securing the planned financing. If financing falls through, the buyer can typically terminate without penalty.
Appraisal Contingency The property must appraise at or above the purchase price (or close to it). If it doesn't, the deal may need to be renegotiated.
Title Contingency The title must be clear of encumbrances that would prevent clean transfer to the buyer.
Document Review Buyer's right to review HOA documents, disclosures, leases (for investment properties), and other materials.
The buyer typically completes the necessary steps under each contingency within the timeframes specified in the contract — securing financing, reviewing documents, conducting inspections, and resolving findings.
Responding to Inspection Findings
When inspections reveal issues, the buyer typically requests one of three responses:
- Repairs — seller fixes specific items before closing
- Credits — seller provides a closing credit allowing buyer to handle repairs after closing
- Price reduction — seller reduces purchase price to account for findings
How to respond objectively and fairly while protecting your interests is where experienced representation matters. Some findings warrant accommodation. Others are nuisance requests buyers use to extract additional concessions. Knowing the difference comes from experience.
We help evaluate each request, recommend responses that protect your position while keeping qualified buyers engaged, and structure agreements that allow the deal to move forward without unnecessary concessions.
Ready to Move Forward?
If you have questions about the inspection or contingency phase of your sale, complete the form above or call us at 123.456.7890.