In most cases, the inspection period is anywhere from one to two weeks from the date your sales contract is signed, though it depends on your specific agreement. The contingency period is supposed to give you enough time to:

• Find a good inspector.
• Set up your appointment (and, ideally, attend it).
• Receive your inspection report.
• Get any follow-up or additional inspections.
• Decide how you’d like to move forward.

Once your home inspector is done on your property, they’ll put together a full report of their findings. The report should have a section for each room or area of the house, as well as a note about anything that needs repairs, is damaged or isn’t functional.

Generally, you’ll see the following terms for any issues they spot:

• Material defect: An issue that might pose a potential safety hazard or have a significant impact on the home’s value.
• Major defect: A system or component that is not working, not functional and needs replacement or repair.
• Minor defect: A small issue that can usually be fixed by a contractor or the homeowner themselves.
• Cosmetic defect: A superficial flaw or blemish that doesn’t impact safety or functionality.

Once you have the results of all your inspections, it’s time to decide what to do with those findings.

You’ll want to consider:

• Which issues pose a hazard to you and your loved ones?
• Which ones would cost a lot to repair?
• Which ones would prevent you from moving in on time?
• Which repairs can you handle on your own?

After you’ve reviewed your inspection reports and determined which issues are big and which aren’t so important, you’ll need to make a decision. Do you go through with the deal, renegotiate it or go back to the drawing board?

As long as you’re within your contingency period, you’ll have these options:

• Continue as planned, with the same sales price and terms as you initially agreed to.
• Renegotiate the price with the seller or ask for credits toward your closing costs to cover the damages/repairs.
• Ask the seller the make certain repairs.
• Cancel your purchase contract outright and back out of the deal.

If you choose to have the seller make repairs to the home, you’ll need to make sure these are completed to your liking. Have your agent schedule a walk-through of the home once the repairs are made, so you can check in on the work and keep your closing on track.

In the event you had the seller make major repairs to the foundation, roof or other important features in the house, you might want to have your inspector come back out for what’s called a “reinspection.” These allow the original inspector to come back out and verify that issues have been properly resolved. They do come with a cost (though usually a small fraction of the original inspection price), but considering that they can prevent safety issues and future repairs down the road, they’re usually worth the nominal investment.