Real Estate News

Navigating Inspection Contingencies Without Losing a Buyer

Master the art of handling inspection contingencies without scaring off buyers. Discover strategies to negotiate repairs, maintain trust, and ensure a smooth real estate transaction.

flareAI Services

21 Sep 2025 — 6 min read

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Picture yourself as a buyer in West Michigan, standing in a century-old home with a view of Lake Macatawa. The charm is undeniable, but the inspection report reveals a crumbling chimney and a sagging porch. Or maybe you're a seller in Florida, racing to close before hurricane season, only to have a buyer demand thousands in repairs after the inspection. In today's real estate market, inspection contingencies can feel like a tightrope walk. But with the new commission rules from the 2024 NAR settlement and platforms like Side Door offering transparent, tech-driven tools, buyers and sellers are finding smarter ways to keep deals alive without the drama.

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Navigating Inspection Contingencies Post-NAR Settlement

Inspection contingencies clauses allowing buyers to renegotiate or walk away based on inspection findings are a cornerstone of real estate deals. But the National Association of Realtors (NAR) settlement in 2024 has thrust them into the spotlight. Gone are the days of automatic commission offers through the Multiple Listing Service (MLS). Now, every fee, from inspections to agent commissions, requires upfront negotiation. This shift has made buyers more cautious and sellers more strategic, particularly in high-demand markets like Michigan and Florida.

In 2024, the U.S. faced a housing shortage of 3.8 million homes, with builders needing 7.5 years to meet demand, according to a Realtor.com report. Restrictive zoning laws, especially for single-family homes, have stifled construction, making every available property a hot commodity. For buyers, a bad inspection can turn a dream home into a deal-breaker. For sellers, particularly those opting for For Sale by Owner (FSBO), transparency through pre-inspections or digital platforms like Side Door can make all the difference. Side Door's guided workflows and vetted professionals inspectors, lenders, and title companies help both parties navigate contingencies with confidence, reducing stress and boosting outcomes.

The New Landscape of Inspections

The NAR settlement has reshaped how buyers and sellers approach inspections. Buyers, wary of unexpected costs, are insisting on thorough inspections, especially in Michigan, where lakefront properties demand scrutiny for water damage or structural wear. In Florida, hurricane-prone regions push sellers to offer pre-inspections to reassure buyers about a home's durability. The settlement's removal of blanket MLS commission offers means every cost is now a negotiation point, making transparency critical.

Digital tools are changing the game. Platforms like Side Door provide real-time inspection reports, enabling instant collaboration between buyers, sellers, and professionals. The rise of FSBO and a la carte services where clients choose only the services they need has empowered consumers to take charge. Unlike traditional firms like Real Estate One or West Edge Realty, Side Door integrates vendors into a single workflow, streamlining communication and keeping deals on track.

Real Stories, Real Solutions

Consider a buyer in Holland, Michigan, eyeing a historic home. The inspection uncovers outdated plumbing, and the contingency period is just seven days. Using Side Door's platform, the buyer connects with a vetted contractor to estimate repair costs, negotiates a shared expense with the seller, and closes the deal without delays. The platform's clear pricing and vendor access prevent the usual negotiation gridlock.

In Florida, a seller in a coastal town faces buyer jitters about storm damage. By ordering a pre-inspection through Side Door, they disclose minor roof issues upfront, sharing the report digitally. The buyer, reassured by the transparency, agrees to a modest price reduction, and the deal closes swiftly. Unlike competitors relying on flashy websites or big marketing budgets, Side Door's strength is its practical, hands-on approach, led by industry veterans who know the stakes.

Navigating the Challenges

Inspection contingencies come with risks. The new commission rules have sparked confusion about who covers inspection costs buyers may expect sellers to foot the bill, while sellers may resist repair requests to protect their bottom line. Overzealous buyers sometimes demand excessive fixes, risking deal collapse. Meanwhile, some parties, particularly older clients, find digital tools daunting, preferring in-person negotiations.

Startups like Side Door also face hurdles. As one prospect noted, “It's a startup, and people want a more polished website.” Established competitors, with their sleek interfaces and heavy ad spend, can seem more reliable. Yet Side Door's focus on a la carte services allowing agents, inspectors, and lenders to work directly with clients offers a unique edge, even if its digital presence is still evolving.

Seizing Opportunities

For sellers, pre-inspections are a game-changer. In Michigan's competitive lakefront market, disclosing issues upfront can attract confident buyers. Transparency builds trust, speeding up closings. Buyers, meanwhile, can use digital tools to track repair timelines and negotiate terms without overplaying their hand. Side Door's platform connects users with trusted professionals, like those at Chicago Title Michigan, ensuring seamless coordination.

Agents and service providers also benefit. With commissions no longer guaranteed, efficiency is key. Side Door's model lets agents offer targeted services, like inspection coordination, without the overhead of full-service contracts. Inspectors and lenders can showcase their expertise directly to clients, meeting their needs more effectively than traditional, fragmented approaches.

Commissions and Inspections: A Delicate Balance

The NAR settlement has made commission talks inseparable from inspection negotiations. Pre-settlement, a seller might have covered a $600 inspection and a 6% agent commission. Now, buyers might split inspection costs or negotiate lower fees, but only if terms are clear upfront. Side Door's transparent pricing tools help both sides avoid surprises, ensuring contingencies don't derail deals. As negotiation strategies evolve, clear communication is critical to keeping transactions smooth.

A Smarter Path Forward

The housing shortage 3.8 million homes in 2024, per the Realtor.com report makes every deal critical. While builders made progress in 2024, outpacing household formation for the first time since 2016, the gap persists due to zoning hurdles. In this high-stakes market, inspection contingencies can be a deal's Achille's heel. But with platforms like Side Door, buyers and sellers have a lifeline. Sellers can use pre-inspections to build trust. Buyers can negotiate repairs with real-time data. Agents can offer tailored services to stay competitive.

The future of real estate is clear: technology and transparency will define success. As markets like Michigan and Florida remain fiercely competitive, tools that simplify complex processes will become standard. Whether you're a buyer chasing a lakeside retreat or a seller racing against storm season, the message is simple: embrace digital workflows, negotiate smartly, and keep the deal alive. Side Door is paving the way, proving that even the toughest contingencies can lead to a closing worth celebrating.

Frequently Asked Questions

What are pre-inspections and how can sellers use them to keep deals on track?

Pre-inspections are home inspections conducted by sellers before listing their property, allowing them to identify and disclose issues upfront to potential buyers. By sharing these inspection reports digitally, sellers build trust and attract confident buyers who appreciate the transparency. This strategy is particularly effective in competitive markets like Michigan's lakefront properties and Florida's hurricane-prone areas, where buyers want assurance about structural integrity and potential storm damage.

How have the 2024 NAR settlement changes affected inspection contingencies in real estate deals?

The NAR settlement eliminated automatic commission offers through the MLS, making every fee including inspection costs a negotiation point. This has made buyers more cautious about inspection expenses and sellers more strategic about transparency. With commission structures no longer predetermined, both parties must now negotiate upfront who covers inspection costs and how repairs will be handled during the contingency period.

How can digital platforms help buyers and sellers manage inspection contingencies more effectively?

Digital real estate platforms provide real-time inspection reports, connect users with vetted professionals (inspectors, contractors, title companies), and streamline communication between all parties. These tools allow buyers to quickly estimate repair costs and negotiate shared expenses with sellers, while sellers can efficiently coordinate pre-inspections and share reports. The transparent pricing and integrated workflows help prevent the negotiation gridlock that often derails deals during the inspection contingency period.

Disclaimer: The above helpful resources content contains personal opinions and experiences. The information provided is for general knowledge and does not constitute professional advice.

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