A buyer and a seller have a purchase agreement that contains a home inspection contingency.

Comprehensive and Detailed Explanation (150–250 words):

In this scenario, the parties have entered into a binding purchase agreement with a home inspection contingency. The buyer submitted an addendum requesting seller repairs, but the seller countered. Since the buyer has not yet accepted, the counter is not binding — therefore, the original contract remains in effect until both parties agree to a modification.

Additionally, because the financing is a VA loan, the VA still requires a VA appraisal (separate from the buyer’s home inspection) to determine value and minimum property requirements. The VA inspection cannot be waived by substituting the home inspector’s report.

Thus, the correct answer is B: the original contract is still in effect.