The Pre-Contract Inspection Explained

What is the pre-contract inspection? A pre-contract inspection is when an agent with their buyer conducts a home inspection before the buyer submits an offer. Why might a pre-contract inspection be a good option for you as a buyer? This type of inspection would allow a buyer to waive the inspection contingency in a multiple offer situation, making your offer “cleaner” or more attractive to a seller. There are two types of pre-contract inspections in this scenario – a walk and talk and a full inspection without time limits. Generally speaking, if multiple offers are expected, sellers will limit the amount of time for inspections (as a full inspection can take 2-3+ hours depending on the size of the property), walk and talk inspections are most common.

A walk and talk is an in-depth inspection however the inspector is focusing on items that would cost more than $1,000 to repair and a report is not issued (so you will need to take notes!). The cost of a walk and talk would be about half the cost of a full inspection.
A full inspection without time limits is exactly what it sounds like. The inspector will note every little thing that is found and a report is issued. The costs vary from about $250-$800+ depending on the size of home and inspection type.

Why might a seller want to allow pre-contract inspections? A pre-contract inspection lets the buyer present a “cleaner” offer to the seller. It is booked in much the same way as showings (with the ability to accept or decline them through Showing Time). What is the benefit to the seller? It removes the buyer’s ability to void the contract via a home inspection contingency. Is there any downside to pre-contract inspections for a seller? The pre-contract inspection may identify something that will discourage potential buyers from making an offer, or they may come in with a lower offer. However, we feel the benefits outweigh the potential costs. We always recommend sellers and buyers sign a pre-contract home inspection document. For more on why, reach out to us today to discuss! In markets with low inventory, buyers may frequently have to forgo home inspection contingencies in order to be the winning offer. In these cases, the pre-contract inspection is a great way for buyers to make sure they still have the information necessary to both get an understanding of any deficiencies with the property and ultimately determine whether or not to move forward with an offer. It’s also a great option for sellers who are looking for a clean and straightforward offer. For more on all things home inspections, check out our blog here. — If you’re looking to buy or sell in Northern Virginia, we’d love to help. Contact us today!