Property Inspection Types
Home inspections are an important contingency in Ocean City real estate contracts. There are several different home inspection contingencies you can choose to include in your real estate contract, which you will find outlined below.
AS-IS WITHOUT INSPECTIONS
Under this scenario you are purchasing the home or condo in its current condition without performing any type of property inspections. Purchasing a property "As-Is" provides the least amount of protection and the highest risk for the Buyer, but is the most attractive scenario for the Seller. Purchasing a property "As-Is" is only recommended as a last resort in markets with a lot of competition and for properties that are in relatively good condition.
AS-IS WITH INSPECTIONS
When you purchase a home or condo “As-Is with Inspections” you are acknowledging that you will purchase the property in its current condition, however you reserve the right to perform property inspections. Along with the right to perform property inspections comes the right to terminate the contract if the property inspections turn up issues that are unacceptable to you. "As-Is with Inspections" provides good protection to the Buyer, while also being attractive to the Seller. "As-Is with Inspections" can be utilized in a variety of scenarios where the property is in relatively good condition and you are ok with taking on some repairs.
CONTINGENT ON HOME INSPECTION
Making an offer “Contingent on Home Inspection” is the standard process and affords the Buyer the most protection. The sale will be contingent on a Buyer having property inspections performed and the satisfactory negotiation of any deficient items that are uncovered during the property inspections. “Contingent on Home Inspection” provides the most protection for the Buyer, but is the least attractive situation for the Seller. “Contingent on Home Inspection” is the recommended scenario for Buyers where possible, though it can present challenges in getting contracts accepted in competitive markets.
HOME WARRANTIES
Home warranties are service plans that help with the costs to repair or replace a home’s systems and appliances. When an item breaks in your home, you make a claim with the home warranty company and they will come out and repair the item. In the event they can not repair the item, they will replace it. Home warranties can provide protection in situations where you do not have property inspections performed or when you are purchasing an older property.
The inspection contingency you choose to include should be based on the condition and type of property you are purchasing, current market conditions (strong market vs. slow market) and your overall comfort level with the property and potential repairs and renovations.
If you have any other questions about real estate in Ocean City feel free to contact me anytime at 443-614-9179.
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