Home Inspection Contingencies In Royal Oak

You want your offer to stand out in Royal Oak, but you also want the right to walk away if inspections reveal major problems. That balance can feel tricky, especially with older homes and quick timelines. You’re not alone. Many buyers ask how to stay competitive without taking on avoidable risk.

In this guide, you’ll learn how inspection contingencies work in Michigan offers, what to expect on timing, which issues are common in Royal Oak homes, and how to negotiate repairs or credits with confidence. Let’s dive in.

What an inspection contingency does

An inspection contingency gives you time to hire professionals, review results, and decide how to move forward. During this period you can:

• Accept the property as‑is.
• Request specific repairs or a credit.
• Cancel within the contract terms if you and the seller cannot agree.

Local purchase agreements often use Michigan Association of REALTORS forms or similar broker forms. These set deadlines for your inspection window, your objection period, the seller’s response, and any re‑inspection. Sellers typically complete a written property disclosure, which can guide your inspection focus and questions.

You usually pay for the inspections you order. That includes the general home inspection and any specialty tests like radon or a sewer scope. Who pays for any follow‑up or re‑inspection is set by your contract or negotiated.

Royal Oak red flags to watch

Royal Oak and nearby Oakland County suburbs have many mid‑century homes, so you should plan for age‑related issues. A focused inspection can save you from surprises later. Common items include:

• Age and materials. Older roofs, original galvanized plumbing, cast‑iron sewer lines, and outdated wiring like knob‑and‑tube or aluminum in some homes.
• Basements and water. Basement moisture and drainage challenges are common. Watch for finished basements and confirm permit history.
• Foundations and masonry. Cracking or settling in block or masonry foundations may call for structural review.
• Lead‑based paint. Homes built before 1978 require special disclosures and precautions.
• Radon. Southeast Michigan has variable radon potential, so testing is often recommended.
• Sewer laterals. Tree roots and cast‑iron failures are known regional issues, which is why sewer scopes are common.
• Utilities. Most homes in Royal Oak have municipal water and sewer, but nearby areas may have wells or septic systems that need testing.
• Permits. Check for additions, basement finishes, major HVAC or electrical work, and verify permits with the city.

Recommended specialty inspections often include a sewer scope, radon test, chimney inspection, HVAC evaluation, pest inspection where signs are present, and structural or engineering reviews for major cracks. In rural or edge areas with private utilities, schedule well and septic inspections.

Timelines that win without giving up protection

Your inspection window is a key lever in a competitive offer. Typical local ranges include:

• Competitive offers: about 5 to 10 days for the general inspection.
• Slower markets: 10 to 14 days.
• Aggressive strategies: 48 to 72 hours, or occasionally waived, if you accept higher risk.

Specialty tests move at their own pace. Radon tests usually run 48 to 72 hours. A sewer scope is a single appointment. Well and septic tests, or lead sampling, can require lab time. If you request repairs, plan for re‑inspection or documentation within a short window, often 24 to 72 hours after work is completed.

If you are using FHA or VA financing, your lender may require certain repairs or clearances. That can add one to two weeks to the timeline. Build this into your planning so you do not bump up against closing.

Smart negotiation moves after the report

Once you have the inspection report, you and your agent can tailor a strategy that fits your goals and the market temperature. Common, effective options include:

• Requesting seller repairs before closing, prioritizing health, safety, structure, and major systems. Require licensed contractors and receipts.
• Asking for a credit or price reduction instead of repairs, which can keep closing on schedule.
• Setting an escrow holdback at closing when repairs cannot be completed in time. The contract should state the amount, deadlines, and release terms.
• Limiting requests to big‑ticket or safety items to stay competitive.
• Accepting as‑is while negotiating a capped credit for unforeseen major items.
• Cancelling within your contingency if terms are not acceptable.
• Requesting a home warranty for the first year as a compromise for smaller items.
• Making re‑inspection and documentation a condition of closing.

If you are using FHA or VA financing, remember that some repairs are lender‑required and not negotiable. Plan around those early.

Addenda you may see in Oakland County

Forms and names vary, but you may encounter:

• Inspection Objection and Resolution Addendum, where you list repair or credit requests.
• Radon Testing Addendum for testing method, timing, and remedies.
• Sewer or Drain Scope Addendum, common where cast‑iron lines and root intrusion occur.
• Well and Septic Addendum for properties with private systems.
• Lead‑Based Paint Disclosure and Addendum for pre‑1978 homes.
• Home Warranty Request Addendum.
• Re‑inspection or Verification Addendum to document timelines and who pays.
• Holdback or Escrow for Repairs Addendum.
• FHA or VA Addendum for program‑specific standards.
• Seller’s Property Disclosure Statement.
• Municipal or Permit Review Addendum to verify permits and code items.

Step‑by‑step after you get the report

Here is a simple flow you can follow:

1. Receive the full report, often within 24 to 72 hours of the inspection.
2. Review with your agent and prioritize issues. Focus on safety, structure, and major systems first.
3. Choose your path within the contingency window: request repairs or credits, accept as‑is, or cancel per the contract.
4. Submit your written objection or addendum by the deadline.
5. Wait for the seller’s response. They may accept, counter, offer a credit, or refuse.
6. If repairs are agreed, define contractors, permit needs, completion dates, and re‑inspection. Collect receipts and warranties.
7. If work cannot be completed before closing, negotiate a clear escrow holdback.
8. Complete a final walkthrough within 24 to 72 hours of closing to verify condition and any agreed work.

Keep everything in writing and track every deadline. Time controls your rights.

Strategy: competitive and protected

In multiple‑offer situations, small adjustments can keep your offer strong without exposing you to major risk.

• Consider a pre‑inspection with seller permission if you want to shorten your contingency later.
• Offer a shorter inspection period but limit your requests to health, safety, structure, and system failures.
• Cap repair requests at a set dollar amount to prevent drawn‑out negotiations.
• Be flexible on closing date or offer stronger earnest money if that supports your overall terms.
• Request a home warranty to bridge the gap on minor items.
• Use an escrow holdback when repairs must occur after closing.
• Choose which optional tests to waive only with eyes open, especially in older homes.

Local due diligence during your window

To make the most of your inspection period in Royal Oak and nearby Oakland County communities, work through this checklist:

• Review the seller’s disclosure and match it to the inspection findings.
• Pull permit history with the city, especially for additions, basement finishes, electrical work, and HVAC upgrades.
• Confirm utilities are municipal or, if private, schedule well and septic testing.
• If the property is in a historic district or an HOA, understand restrictions before planning updates.
• For homes built before 1978, review the lead disclosure and consider testing if children, pregnancy, or renovations are in your plans.

Buying an older home in Royal Oak can be a smart move when you know how to handle inspections well. A clear plan, tight timelines, and focused requests let you compete without sacrificing protection. If you want a calm, step‑by‑step approach from offer to closing, with help coordinating the right inspectors and contractors, reach out.

Ready to craft a competitive, protected offer in Royal Oak and Oakland County? Connect with Kathy Remski for local guidance tailored to your move.

FAQs

How long is a typical inspection contingency in Royal Oak?

• Many competitive offers use 5 to 10 days for the general inspection, with shorter windows possible when market pressure is high.

What inspections matter most for older Royal Oak homes?

• A general home inspection plus a sewer scope, radon test, chimney review, and targeted checks for wiring, plumbing, and foundation concerns are commonly recommended.

Can I cancel after inspections if we cannot agree on repairs?

• If your contingency allows and you act within the deadlines, you can terminate and pursue the remedies described in your contract.

Should I waive the inspection to win a multiple offer?

• Waiving increases risk; a shorter window with limited requests for major or safety items is a safer way to stay competitive.

How do FHA or VA loans affect inspection repairs?

• Lenders may require certain repairs or hazard clearances, which can extend timelines by one to two weeks.

What is an escrow holdback for repairs?

• It is money held from the seller’s proceeds at closing and released when agreed repairs are completed by a deadline stated in the contract.

Do sellers pay for inspections in Royal Oak?

• Buyers typically order and pay for general and specialty inspections unless a different arrangement is negotiated and put in writing.