A High Home Inspection Threshold - How to Make an Offer More Competitive
Channel: Living in Boston & the Burbs by Jeffrey Chubb
Date: 14/04/2021

A High Home Inspection Contingency Threshold is a way to make your offer more competitive and at the same time protect a buyer from major issues. 

Waiving a home inspection can be very risky. Having a High Home Inspection Threshold allows a buyer (and seller) to have the best of both worlds. 

Most standard offers in Massachusetts are written so that you can walk away for any issue that you find. Even the small ones. Believe it or not, a cracked light switch plate would be enough to allow a buyer to walk away. 

Putting a threshold in there says to a seller that you are a serious buyer and not looking to nit pick the sellers on any and all little issues. 

If you are trying to make your offer more competitive in a competitive market and are not willing to waive the home inspection, then put a high threshold amount on the offer. 

How it works is if you agree to a threshold of $5,000 then you as a buyer are not able to negotiate with the seller or walk away without putting your deposit in jeopardy for any issues that cumulatively reach $5,000. 

The threshold can be for any amount. A buyer starts to see some competitive advantage with $2,500 to $5,000 thresholds. We have seen threshold amounts of $10,000 which will make an offer a lot more competitive. 

https://www.boston2.com/blog/how-can-i-make-my-offer-more-competitive-the-buying-power-checklist/

Jeffrey Chubb | Chubb Homes Team | 617-480-2600 | Jeff@Boston2.com | www.Boston2.com | Brokered by eXp Realty