Inspection for Informational Purposes Only: What It Means For Buyers and Sellers

"The clause "inspection for informational purposes only" became popular in the competitive housing market during the pandemic. You may have seen it in an offer, or even used it yourself. While the term sounds simple, buyers and sellers don't always agree on what it means once the purchase and sale agreement is signed. An inspection for informational purposes only means the home inspection is for the buyer's knowledge only, and won't be used to negotiate over every minor issue."

"But the rules can vary by state, and misunderstandings can lead to conflicts during the sale. Here's what you need to know to navigate negotiations and set realistic expectations, whether you're buying a home in Boston, MA, or selling in Los Angeles, CA. What does "inspection for informational purposes only" mean? An inspection for informational purposes only, sometimes called an "informational inspection" or "info-only inspection", is a clause that allows buyers to complete a home inspection while:"

"Releasing the seller from any obligation to fix issues: While sellers aren't (usually) required to fix anything that comes up during the inspection, an informational inspection reduces the risk of negotiations or unexpected costs for the seller. Retaining the buyer's right to walk away (depending on the contract): If the offer is accepted as an information only inspection, and maintains the inspection contingency, buyers can still walk away after the inspection."

An inspection for informational purposes only allows buyers to complete a home inspection while generally agreeing not to request repairs or price reductions. The clause can include limits, such as excluding requests for repairs under a specified dollar threshold, and may release sellers from any obligation to fix issues discovered. State laws and contract wording determine whether buyers retain the right to walk away; maintaining an inspection contingency preserves exit rights, while waiving it can bind the buyer. The clause aims to inform buyers about property condition while reducing negotiation hurdles and unexpected costs for sellers.

Read at Redfin | Real Estate Tips for Home Buying, Selling & More