Over the past five years, we have been in what is mostly a seller's market. Often in a seller's market, buyers are forced to waive contingencies, increase purchase prices, and provide very favorable terms to the seller.

One of the most common contingencies that is waived is the home inspection contingency. This is usually waived for obvious reasons. Without a home inspection contingency, the buyer can't renegotiate terms or terminate the agreement for something found during the home inspection, whether it is major or minor.

In Pennsylvania, buyers can terminate the agreement for any reason. That means if the only issue in the home inspection report is a GFCI outlet that needs to be replaced, the buyer can still terminate the contract.

This is a significant concern for sellers because, even if their property is in excellent shape, a buyer might still back out due to cold feet. Waiving the contingency eliminates this risk for sellers. The home inspection contingency is also the most common point at which contracts fall apart.

Since the 2020 post-COVID market shift, I have noticed that more of my contracts are being accepted with home inspection terms. However, sellers tend to be very strict with their responses because we are still in a seller's market. In the back of their minds, they know they can terminate the agreement and likely find another buyer.

One of the things sellers hate the most—regardless of the market—is when buyers use the home inspection contingency to negotiate minor issues just to get money out of the seller. This practice, commonly known as "nickel and diming," frustrates sellers and can jeopardize deals. It can leave the seller very angry and not want to negotiate ANY terms with the Buyer. While the Buyer might think that asking for all these minor credits that add up is a good strategy, what they forget is that they are dealing with a human being. That human being can become offended and not want to negotiate further. This jeopardizes your chances at maximizing your negotiated terms.

A strategy I use for my buyers to improve their awareness and increase their chances of negotiating better terms after the inspection is to be as informative as possible during the showing. While this might seem straightforward, many agents don't do it.

Many agents act as "yes men" (or women), praising the house while ignoring visible issues that the buyer might not notice. This approach creates problems later during the home inspection process.

When I walk through a property with my clients, I immediately note things that need to be addressed. I don't focus on aesthetics like wall colors, kitchen cabinets, or flooring materials—those are personal preferences. My job is to identify necessary repairs and make sure my Buyer is buying a solid home. If I see that all the windows need replacing, I make sure the buyer knows. If the electrical system is ungrounded and needs rewiring, I point it out. Any other issues that stand out, I highlight for the buyer.

This way, when the buyer submits their offer, they are already aware of the existing issues and can reflect that in their price or terms. When those issues appear in the inspection report, they are fully prepared for them, understanding that these are problems they will have to address. As a result, when buyers negotiate with the seller, they are more prepared, less likely to get cold feet, and more confident in what needs to be fixed and how much to ask for.

If there are issues we didn't notice during the walk-through that arise in the inspection report and they are significant concerns, we always address them. Unless there's a major structural or other issues that significantly impacts the property's value and will be an absolute deal breaker, we inform the seller that we were already aware of other items during our walkthrough but are only requesting remediation for the major concerns that were not directly seen or disclosed.

This strategy has been highly effective in negotiations. It signals to the seller that we are not trying to squeeze every dollar out of them, which often leads to frustration. It also shows that we are serious buyers who want to proceed with the purchase but need to renegotiate due to significant, unforeseen issues.

Ultimately this keeps the Buyer at ease, fully aware, and prepared, and gives them highest chances of success for home inspection negotiations. If you are a Buyer that is waiting to use the home inspection contingency, regardless of the condition of the home to renegotiate terms and get more of a discount, you will only upset all parties.

Good luck to all!