{"id":17457,"date":"2020-06-29T10:19:22","date_gmt":"2020-06-29T17:19:22","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=17457"},"modified":"2026-03-18T09:50:45","modified_gmt":"2026-03-18T16:50:45","slug":"buyer-can-i-back-out-of-buying-a-house-after-inspection","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/","title":{"rendered":"How to Back Out of Buying After a Home Inspection Goes Wrong"},"content":{"rendered":"

So, you got the home inspection<\/a> report back for your supposed dream home \u2014 and things are not looking too hot. There are signs of flooding in the basement and extensive termite damage<\/a>. It\u2019s enough to make you want to run screaming and start the entire home search over, especially if the seller refuses to pay for the repairs.<\/p>\n\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Prepare for a home inspection with a top-rated agent<\/h3>\n

HomeLight has analyzed over 27 million transactions and thousands of reviews to determine which agent is best for you based on your needs. It takes just two minutes to match clients with the best real estate agents, who will help you be ready for your home inspection.<\/p>\n

\n
\n
\n
\n

 <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n \n

\n Find Agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

\u201cIt’s the biggest speed bump in a transaction that’s always the one that, whether you\u2019re a buyer or a seller, you’re hoping to get past\u2026 and it’s usually very smooth sailing from there,\u201d says Alan Daniels<\/a>, a real estate agent who ranks in the top 1% of Colorado Springs<\/a> agents.<\/p>\n

But when is it acceptable to back out of your offer after a home inspection? We spoke with top agents and inspectors about when you can pull out \u2014 no questions asked. Here are five hypothetical situations you may encounter when trying to back out of your offer after the home inspection.<\/p>\n

\"The<\/a>
Source: (Kaboompics.com \/ Pexels)<\/figcaption><\/figure>\n

Use a home inspection contingency to protect yourself<\/h2>\n

Once you make an offer on the home, you\u2019ll have to pay some earnest money<\/a> upfront (typically 1% to 2% of the purchase price) to show the seller you\u2019re serious about making this purchase, and you\u2019ll also sign a legally binding purchase contract with the seller stating you\u2019ll buy the home if all goes according to plan.<\/p>\n

This contract should almost always include an inspection contingency<\/a>, which allows the buyer to request repairs or credits to any issues found during the inspection \u2014 or to cancel the deal entirely.<\/p>\n

But this contingency comes with a deadline (typically 7 to 10 days), so buyers need to pay attention to timing to assure they\u2019re protected from any damages if they terminate the contract. That\u2019s why it\u2019s important to hire a top-notch buyer\u2019s agent<\/a> to help you stay on top of things and link you with a quality inspector who will spend hours on a thorough inspection.<\/p>\n

In fact, 95% of purchased homes go through an inspection<\/a> \u2014 it\u2019s a requirement for many mortgage loans<\/a> \u2014 so it\u2019s important to follow suit and get a home inspection to protect yourself and your milestone purchase. Although in a seller\u2019s market, it may be tempting to waive the inspection contingency to appear as the better offer, you could be putting yourself at serious risk.<\/p>\n

That\u2019s why Tracey Litt of Litt Home Inspection has been seeing more pre-offer inspections done in the Greater Boston Area. That way buyers can get the inspection they need while still waiving the contingency \u2014 though they risk their offer not being accepted but still paying for the inspection.<\/p>\n

If you do find something terribly wrong or extensive damage you don\u2019t want to pay for, you might be worried that your earnest money is gone for good if you decide to pull out of the contract. That’s not necessarily the case. Let\u2019s walk through some scenarios:<\/p>\n

Example #1: The no-brainer<\/h2>\n

Let\u2019s say you do exactly what you\u2019re supposed to: the purchase agreement includes an inspection contingency, the earnest money has been paid, and the inspection has been ordered and completed in time.<\/p>\n

But during the inspection, the inspector finds some major issues indicating foundation problems<\/a>. To be safe, you order additional inspections<\/a> for mold and plumbing and discover that the home does have mold and will need a new sewer main. Yikes!<\/p>\n

\u201cOften people don’t know what’s going on in their house,\u201d Litt says.<\/p>\n

\u201cI find that sellers and listing agents can be just as surprised [by] the stuff that comes up.\u201d<\/p><\/blockquote>\n

You go back to the seller asking them to pay for the necessary repairs to remove the mold and replace the sewer. They refuse, so naturally, you decide to back out before the inspection contingency period is over.<\/p>\n

In this scenario, the seller must return the buyer\u2019s earnest money and has no recourse to sue the buyer for backing out \u2014 this is a completely legal move, according to Daniels.<\/p>\n

\u201cIf the inspection doesn’t come to terms, then it terminates at that non-resolution date, and the buyer gets their earnest deposit back,\u201d he says.<\/p>\n

\"A<\/a>
Source: (Pixabay \/ Pexels)<\/figcaption><\/figure>\n

Example #2: The cash buyer<\/h2>\n

If you\u2019re a cash buyer<\/a>, you don\u2019t actually have to get an inspection on the house \u2014 there\u2019s no lender involved, so it\u2019s entirely your decision.<\/p>\n

\u201cIt’s still recommended that the cash buyer at least gets a general overview of the major components of the home,\u201d Daniels says.<\/p>\n

So a smart cash buyer will still want to make sure their investment is up to standard. Suppose you\u2019re a cash buyer who hires an inspector who finds, say, extensive termite damage that you\u2019re not up to pay for.<\/p>\n

As long as you\u2019re within the timeframe of the inspection contingency, you can still pull out of the purchase contract and get your earnest money back \u2014 no questions asked.<\/p>\n

Example #3: The seller\u2019s market<\/h2>\n

Let\u2019s say it\u2019s currently a seller\u2019s market. To make your offer more competitive, you add a contingency that says you\u2019ll take on any of the costs for repairs found during the inspection. But during the inspection, you learn of a heinous pest infestation that you don\u2019t want to pay to repair.<\/p>\n

According to Daniels, you may still be able to pull out of the contract\u2026 as long as you worded the contingency correctly. Basically, the contingency should state that you\u2019ll buy the house as-is, but also that if there are any major adverse conditions, you won\u2019t be moving forward. You\u2019ll probably want to outline the deal-breakers in the inspection contingency so that everyone is clear about what will be considered a \u201cmajor adverse condition.\u201d \u201cSo just take some of that competitiveness out of it a little bit,\u201d Daniels says.<\/p>\n

The seller will probably be upset, but you can still get your earnest money back \u2014 as long as you\u2019re within the inspection contingency deadline.<\/p>\n

\"A<\/a>
Source: (Marius Mann \/ Pexels)<\/figcaption><\/figure>\n

Example #4: The late arrival<\/h2>\n

Uh-oh. You\u2019ve waited past the inspection deadline, but you still want to back out.<\/p>\n

You can likely get out of your purchase contract<\/a>, but you\u2019re not likely to get your earnest money back, and the seller may decide to sue you for breach of contract \u2014 but this honestly isn\u2019t likely, as it is very difficult for a seller to list and sell a house that\u2019s part of a lawsuit as long as that lawsuit is ongoing.<\/p>\n

However, Daniels notes it could be possible to get your earnest money back with other contingencies in the contract.<\/p>\n

For example, if the insurance<\/a> doesn\u2019t work out, or a loan falls through, you can often get your deposit back thanks to an insurance contingency or financing contingency.<\/p>\n

As long as you have the right contract contingencies, and a good agent<\/a> who knows the dates in and out and is protecting you the whole way through, the odds of losing your earnest money deposit are low.<\/p>\n

Example #5: The hidden problem<\/h2>\n

There\u2019s a Seller Disclosure that sellers have to give buyers, which discloses all of the known issues<\/a> with the house and protects the buyer in advance of the sale. But if the inspector finds an issue with the home \u2014 for example, a leak the seller swore was fixed, or something buried under the home \u2014 and you have evidence that the seller concealed it or deliberately excluded it from the disclosure, you can back out of the deal.<\/p>\n

If you\u2019re inside the inspection contingency deadline, you can back out of the deal and get your earnest money back. But in this scenario, even if you\u2019re outside the deadline, you could have an actionable case to sue<\/a> and should talk to a lawyer, says Daniels.<\/p>\n

Typically, the seller will be in the wrong for not disclosing information, so you should be able to get your earnest money returned.<\/p>\n\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Achieve Greater Buyer Confidence With a Top Agent<\/h3>\n

HomeLight can connect you with the most experienced buyer\u2019s agents in your home shopping area. These top professionals can help you make the best buying decisions and protect your interests.<\/p>\n \n

\n Get Started<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

Bonus example: What happens if you find a big problem after closing?<\/h3>\n

In a fast seller\u2019s market, Litt is seeing more and more buyers forgoing the home inspection for a more competitive purchasing contract \u2014 which she does not recommend doing under any circumstance. But she does still recommend getting an inspection after closing, to assure that there aren\u2019t any major damages to be aware of.<\/p>\n

\u201cLast year, I had people calling me to do post-closing inspections, which I call, ‘Hey, let’s see what you bought!\u2019 \u2014 and a couple of those did not go too well,\u201d Litt says. \u201cI had one woman crying because of it. In one of them, I found a buried oil tank, which can have catastrophic environmental implications and can cost tens of thousands of dollars to remediate.\u201d<\/p>\n

But if you find yourself in this situation, especially if the information wasn\u2019t disclosed by the seller or the inspector failed to notice a major issue, you could have another legal case on your hands. In this scenario, Daniels recommends immediately seeking legal advice to see if you can get these damages covered.<\/p>\n

Header Image Source: (Skitterphoto \/ Pexels)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.<\/p>\n","protected":false},"author":155,"featured_media":17462,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,705,646],"tags":[],"class_list":["post-17457","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-buyers-inspection","category-making-offers"],"acf":[],"yoast_head":"\n5 Ways to Back Out of Buying After a Bad Home Inspection<\/title>\n<meta name=\"description\" content=\"When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Back Out of Buying After a Home Inspection Goes Wrong\" \/>\n<meta property=\"og:description\" content=\"When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-29T17:19:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-18T16:50:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"546\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Courtney Campbell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Courtney Campbell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"5 Ways to Back Out of Buying After a Bad Home Inspection","description":"When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/","og_locale":"en_US","og_type":"article","og_title":"How to Back Out of Buying After a Home Inspection Goes Wrong","og_description":"When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.","og_url":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/","og_site_name":"HomeLight Blog","article_publisher":"https:\/\/www.facebook.com\/gohomelight\/","article_published_time":"2020-06-29T17:19:22+00:00","article_modified_time":"2026-03-18T16:50:45+00:00","og_image":[{"url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png","width":1024,"height":546,"type":"image\/png"}],"author":"Courtney Campbell","twitter_card":"summary_large_image","twitter_creator":"@gohomelight","twitter_site":"@gohomelight","twitter_misc":{"Written by":"Courtney Campbell","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#article","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/"},"author":{"name":"Courtney Campbell","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/af7b17f34f963cd7185a5890c9773c6d"},"headline":"How to Back Out of Buying After a Home Inspection Goes Wrong","datePublished":"2020-06-29T17:19:22+00:00","dateModified":"2026-03-18T16:50:45+00:00","mainEntityOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/"},"wordCount":1565,"publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png","articleSection":["Buyers","Home Inspections","Making the Offer"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/","url":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/","name":"5 Ways to Back Out of Buying After a Bad Home Inspection","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#primaryimage"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png","datePublished":"2020-06-29T17:19:22+00:00","dateModified":"2026-03-18T16:50:45+00:00","description":"When is it acceptable to back out of your offer after a home inspection? Here are five hypothetical situations you may encounter.","breadcrumb":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#primaryimage","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/06\/can-I-back-out-of-buying-a-house-after-inspection-head.png","width":1500,"height":800,"caption":"Source: (Skitterphoto \/ Pexels)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.homelight.com\/blog\/buyer-can-i-back-out-of-buying-a-house-after-inspection\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.homelight.com\/blog\/"},{"@type":"ListItem","position":2,"name":"How to Back Out of Buying After a Home Inspection Goes Wrong"}]},{"@type":"WebSite","@id":"https:\/\/www.homelight.com\/blog\/#website","url":"https:\/\/www.homelight.com\/blog\/","name":"HomeLight Blog","description":"Real Estate Advice from America's Top Agents","publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.homelight.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.homelight.com\/blog\/#organization","name":"HomeLight","url":"https:\/\/www.homelight.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","width":1348,"height":262,"caption":"HomeLight"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/gohomelight\/","https:\/\/x.com\/gohomelight","https:\/\/www.linkedin.com\/company\/homelight\/","https:\/\/www.youtube.com\/channel\/UCimugR9XF17-OZ7B9fNnxWw","https:\/\/en.wikipedia.org\/wiki\/HomeLight"],"description":"Everything you need to know to sell your house faster and for more money. Articles, guides, and advice from top agents all over the U.S.","email":"support@homelight.com","telephone":"(888) 688-0350","legalName":"HomeLight","foundingDate":"2012-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"201","maxValue":"500"}},{"@type":"Person","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/af7b17f34f963cd7185a5890c9773c6d","name":"Courtney Campbell","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/f21f54c52e99471c2170ed479c21b5094feff255ba693753f618429237de67bc?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/f21f54c52e99471c2170ed479c21b5094feff255ba693753f618429237de67bc?s=96&d=blank&r=g","caption":"Courtney Campbell"},"description":"Courtney is a writer and editor who has a passion for interior design and all things Fixer Upper. Her work has also appeared in USA Today, Reviewed, Country Living, Women\u2019s Day, Make Change Magazine, Our State Magazine, and more.","url":"https:\/\/www.homelight.com\/blog\/author\/courtney-campbell\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/17457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/155"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=17457"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/17457\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/17462"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=17457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=17457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=17457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}