After years of pandemic-era deals that often skipped inspections entirely, South Jersey’s housing market is returning to a more traditional process. The adjustment is causing friction. According to Nicole Echelberger, Managing Broker at HomeSmart First Advantage Realty, the most common deal-killer in today’s market is neither financing nor pricing. It is the home inspection.
The return of inspection contingencies marks a clear departure from pandemic-era norms, when buyers on both sides of the transaction operated under a compressed and high-pressure process. Sellers grew accustomed to offers that required little scrutiny, while buyers learned to compete by surrendering standard protections. As those conditions fade, both groups are recalibrating — but not at the same pace. Buyers have adjusted faster, reasserting due diligence practices that protect their financial exposure. Sellers, in many cases, are still catching up.
Pandemic Killed Inspection Contingencies
During the peak of the pandemic-era seller’s market, buyers routinely waived inspection contingencies or severely limited their scope to stay competitive in bidding wars that Echelberger says sometimes drew 15 to 20 offers. The practice became so normalized that sellers stopped preparing for repair negotiations altogether. Now that conditions have cooled, those same sellers are encountering a process they haven’t navigated in years.
Echelberger says buyers are no longer willing to accept that kind of risk. “They’re not waiving inspections and doing things that are a little riskier. Buyers are resilient. They’re just being more cautious.”
That caution makes sense. Buyers who waived inspections during the frenzy accepted significant financial exposure in exchange for a competitive edge. In a more balanced market, that trade-off no longer holds. Buyers are reclaiming protections that the pandemic-era market had conditioned them to give up.
Sellers Lag Behind Market Shift
The deeper problem, according to Echelberger, is not that inspections are happening. Sellers are simply unprepared for what comes next. After years of accepting offers with minimal contingencies and no repair obligations, many sellers have internalized a version of the transaction that no longer exists.
Echelberger describes a disconnect in which some sellers are still adjusting to a market that expects negotiation. Buyers will make repair requests, and sellers need to respond with reasonable fixes or counteroffers. “It takes a learning curve to get them on board,” she says.
This behavioral lag is particularly visible in markets that experienced prolonged seller dominance. When a market condition persists for four or five years, it stops feeling like a cycle and starts feeling like the norm. Sellers who listed during that period have no recent frame of reference for a transaction involving back-and-forth over a leaky roof or an aging HVAC system. This friction surfaces late in the transaction, after both parties have invested time and emotional energy. That timing makes it more disruptive than a pricing disagreement that appears upfront.
Inspections Signal Market Rebalancing
The return of inspection contingencies points to a broader market correction already underway. When buyers waive inspections, it signals an extreme imbalance in demand. When buyers reinstate them, it signals that leverage has shifted enough for buyers to protect themselves. Sellers must now work harder to earn buyer commitment rather than simply accept the highest bid.
For the broader industry, this has measurable consequences for deal closure rates and transaction timelines. Deals that once closed in two to three weeks now take longer, involve more negotiation rounds, and are more likely to fall apart when sellers resist reasonable repair requests. Agents on both sides are spending more time managing expectations, and fewer deals are closing cleanly on the first attempt.
Echelberger also notes that pricing and inspection friction are connected. Sellers who overprice face two problems: fewer buyers touring the home and more contentious negotiations with those who do. “Pricing it correctly is so important because buyers are taking their time and they’re more discerning,” she says. “Without pricing it correctly, you’ll really see a limited number of tours.”
Set Expectations Before Listing
Managing seller expectations before listing, not mid-transaction, is the more effective approach to reducing late-stage deal failures. Having the repair-negotiation conversation early means both parties enter the process with a realistic understanding of what a modern transaction involves, reducing the risk of deals falling apart after time and emotional energy have already been invested.
This means presenting sellers with current market data during initial consultations, walking them through what a realistic inspection response looks like, and framing repair negotiations as a normal part of today’s process. As Echelberger puts it, “There’s always going to be a lag, a learning curve for the general public who isn’t immersed in real estate every day.”
As more markets move away from pandemic-era conditions, resetting seller expectations around inspections is likely to become a common training priority for brokerages. Agents and firms that address this before the first showing may close more deals with fewer late-stage surprises.
About the Expert: Nicole Echelberger is the Managing Broker at HomeSmart First Advantage Realty, where she oversees agent development and transaction strategy across South Jersey. She works directly with agents to navigate shifting market conditions and prepare sellers for the realities of today’s real estate process.
This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. The views and opinions expressed herein reflect those of the individuals quoted and do not represent an endorsement of any company, product, or service mentioned. Readers should conduct their own due diligence and consult qualified professionals before making any investment decisions.
