A home inspection does not technically “pass” or “fail,” but the results can still lead to renegotiation, repairs, or a buyer choosing to walk away.
In Washington, the inspection process is governed by Northwest MLS Form 35. The inspection contingency gives the buyer a defined period of time to evaluate the property and decide how to proceed based on the findings.
After reviewing the inspection report, the buyer generally has three options:
- Approve the inspection and move forward as-is
- Request repairs, a credit, or a price adjustment
- Disapprove the inspection and terminate the agreement within the inspection period
What Buyers Mean When They Say “The Inspection Failed”
When buyers say an inspection “failed,” they usually mean one of two things:
- The inspection uncovered issues they were not comfortable accepting
- The cost or scope of repairs changed how they view the purchase
Inspection reports are intentionally detailed and often include dozens of items. Most of these are maintenance-related, not major defects. The presence of findings does not automatically mean the home is in poor condition.
The decision comes down to the buyer’s comfort level, not a formal pass-or-fail standard.
What Happens After the Inspection Report
Once the inspection report is delivered, the buyer must respond within the inspection timeframe using the proper notice, typically Form 35R.
At that point, the process usually moves into one of three paths:
1. Moving Forward As-Is
The buyer may decide the findings are acceptable and approve the inspection. This satisfies the inspection contingency and allows the transaction to move toward closing.
2. Requesting Repairs or Credits
The buyer may request specific repairs, a credit at closing, or a price adjustment.
The seller is not required to agree to these requests. The seller may:
- Accept the request
- Reject it
- Agree in part
- Propose an alternative solution
This stage is a negotiation, not an obligation.
3. Terminating the Agreement
If the buyer is not comfortable moving forward, the buyer may deliver written notice of disapproval within the inspection period.
If delivered correctly and on time, the agreement is terminated under the inspection contingency and earnest money is typically refunded according to the contract.
Who Decides Whether the Inspection Is Acceptable?
The buyer does.
Washington inspection contingencies are based on the buyer’s satisfaction, not on proving that a defect is major or minor.
A home inspector provides observations and recommendations. The inspector does not determine whether the buyer should proceed.
The Most Common Misunderstanding
One of the most common misunderstandings is believing that an inspection is a pass-or-fail test.
It is not.
Two patterns show up repeatedly in real transactions:
- Treating routine maintenance items as major defects
- Assuming that every issue identified in the report must be fixed by the seller
Inspection reports are designed to be thorough. They often include items such as worn caulking, aging components, or minor cosmetic issues alongside more meaningful concerns. Without context, it is easy to read the report as a list of problems rather than a mix of maintenance and condition notes.
At the same time, the inspection contingency allows a buyer to request modifications. It does not require a seller to agree to them. Negotiations are based on risk, cost, and overall terms, not on the idea that every item must be corrected.
Understanding that distinction helps keep the process grounded and prevents unnecessary friction during negotiations.
What This Looks Like in Real Transactions
The inspection stage is often where the transaction becomes more detailed and more real for both parties.
Buyers are evaluating the property beyond surface-level impressions, often for the first time with professional input. Sellers are seeing their home through a different lens, with specific conditions documented in writing.
Many transactions move forward after inspection, either as-is or through negotiated repairs or credits. Others do not, particularly when findings significantly change how the buyer views the property or the overall investment.
It is common for buyers to request some level of modification. It is also common for sellers to evaluate those requests carefully rather than agreeing to everything.
The inspection contingency exists to allow that evaluation to happen within a defined structure. The outcome depends on the findings, the expectations of both parties, and how the negotiation is handled within the contractual timelines.
The Key Takeaway
A home inspection does not fail, but it can change the direction of a transaction.
The inspection contingency gives the buyer a structured window to evaluate the property and decide how to proceed. The outcome depends on the findings, the buyer’s comfort level, and how both parties respond within the contractual timeframe.