What Buyers Should Do After Home Inspection Contingency Is Removed
- Adam Garrett
- Sep 6, 2023
- 5 min read
Updated: Jun 20
In this article I'll be going over your next steps following home inspection contingency removal, assuming that you had one to begin with.
Ask your closing company to order the title search if they haven't already.
Title companies vary as far as if they will waive fees for the title search if the purchase doesn't close. Many buyers working with companies that waive fees if no closing occurs will have the title search ordered right after contract ratification. Especially if working with a company that doesn't waive fees, and you've waited until now to order the title search, asking your title company to order the title search now will be best for most unless you're unusually flexible with your closing date and wouldn't incur significant expenses if closing was delayed due to title defects. If it wouldn't be a big issue to delay closing, some buyers like to delay that until after receipt of the appraisal, but it's important to keep in mind that each of those 2 steps can take a few weeks or more to complete in the worst-case scenarios, though appraisals typically (but not always) occur within 14 days of being ordered.
IF closing in <20 days & owner occupant: consider beginning packing
At this point, you might consider starting the packing process if you haven't already, but it depends on how long it will take you to pack since the ideal time is really following the appraisal if that is a feasible timeframe. Keep in mind the "Use the Right Packing Materials" section of this article if considering cardboard, especially used cardboard from outside of your home. It's also best to use companies with flexible cancellation/rescheduling policies rather than those who would incur hefty penalties if you needed to cancel or reschedule, especially if the timing is going to be tight before closing or if using a lender who tends to be slower than typical lenders.
The deal could still fall through if contingencies remain.
Whatever preparations you make, keep in mind that if any contingencies remain, there are still matters that could cause the deal to fall through, though it's unlikely. For instance, if contingent on termite inspection, appraisal, septic inspection, well inspection, survey, (or moisture inspection in Hampton Roads on a typical REIN contract), there are still items that the seller may be unable or unwilling to take care of. Most contracts in SE VA have an amount of these that the seller has agreed to take care of upfront (See REIN Standard Purchase Agreement Page 7 Section 13A, multiple sections in VAR including Paragraph 17, ), but sometimes they don't agree to these in the contract, & sometimes the amount is insufficient to cover the issue and the seller is unwilling to come up with the difference. Also in some cases, buyer funded escrow hold backs are not an option for these repairs if the seller is unwilling to take care of them.
While it definitely costs more, it's safer to be "clear to close" with no remaining contingencies and the mortgage (if applicable) completely ready prior to solidifying things with people like flights, a landlord you are renting from, movers (though a tentative date with a flexible cancellation policy is best), etc.
If Renting
If you are renting, some find it good to update their landlord as well.
Just keep in mind that there are still matters that could cause the deal to fall through, as stated above.
If Using a Mortgage, Making the Wrong Move Now Could Cost You the Transaction & More, so See Below
Be sure to communicate the inspection contingency removal consummation with your lender (without sending them a copy or telling them anything about repairs).
Request & pay for the appraisal (within 3 days for REIN contracts, with the penalty you risk if you don't being buying firm and listing firm commission, your EMD, attorney's fees potentially, and more) and so that nothing regarding the loan will slow us down & please convey to me if your lender thinks that there will be any delays before the scheduled closing date. Be certain that the appraisal payment goes through once you pay. In 1 case, a buyer I worked with paid for the appraisal with their credit card, the charge was denied, & they didn't find out until days later which delayed closing.
You will need to receive & confirm receipt of the closing disclosure from your lender at least 3 days prior to closing, not including Sundays (& depending on lender, sometimes not including Saturdays).
If Getting An Appraisal
Please let me know once you receive the appraisal and send it to me shortly after receipt.
If the contract is contingent on appraisal (i.e. most mortgages), check to see if the value is sufficient to support the contract price (& if applicable, any appraisal guarantee). Check as well to ensure that the appraisal is "as is", not requiring any repairs to be completed at the property.
If Out of Town
It's possible to close remotely via mobile notary. It's also possible to arrange for travel. If you do arrange for flights, movers, etc.,
Walk Through Inspection Professional Inspector Scheduling if Desired
While also a possibility if there are no repairs, especially in cases where there are repairs, some buyers like to get a 2nd inspection, & it's important to alert your agent & coordinate scheduling with your agent and the home inspector if that's the case. One way that I like to reduce the need for this issue is by requesting pictures often in home inspection contingency removal addendums, but pictures only go so far. Most often buyers do not want to pay extra for an additional inspection by a home inspector for the walkthrough inspection unless repairs are extensive &/or there is significant work done in the crawlspace. If you are able to get the original home inspector, a re-inspection fee is typically between $75 and $250, but sometimes free. Often companies will not do re-inspections with someone other than the original inspector, and often the original inspector can be booked a week or more out.
On an even more rare occasion, some buyers like to pay to have additional specialists come to re-inspect, so please let me know if that is the case & if you would me to arrange someone rather than getting one yourself.
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