Should a buyer get a home inspection for a home they are buying? Should a seller order a home inspection prior to putting the property on the market? There are advantages for both.
Simply put, a home inspection is a visual examination of both the physical structure and major systems of the entire home including: walls, ceilings, floors, decks, exterior covering, the roof, foundation, insulation and ventilation, plumbing, electrical, heating and air conditioning. It is not an appraisal to validate the value of a home, nor a pass/fail exam. A third-party inspector will give a report on the physical condition and suggest repairs.
Buyers
For buyers, a home inspection clause in the written offer that makes the purchase contingent upon the findings can provide peace of mind. If a serious problem is found, it allows room to renegotiate the purchase price or “opt-out” of buying the home altogether. However, this is usually uncommon. Typically, the seller will already have told the buyer about any major problems.
More often, inspections reveal less serious defects that aren’t enough to warrant backing out of the transition. However, knowing about these minor problems can prevent major disasters down the road. In addition, if specified in the inspection clause, the cost of the repairs can be at the seller’s expense. And don't think just because it is a new home, it shouldn't have an inspection. Most buyers are very excited to be purchasing a new home and they won't see things that an inspector will find. I remember one of my buyers resisting me about having a home inspection on a $800K home, but the inspector found more problems with the home than most pre-owned homes. In fact, the inspector found no insulation had been installed in the attic, something the buyer probably wouldn't have found until years later.
Another advantage to having a home inspection is it offers buyers an opportunity to become familiar with their new home and learn about maintenance to help in its upkeep. Although not required, it’s recommended that buyers be present during the inspection. This allows them to observe the inspection; ask questions about the condition of the home; and receive an objective opinion.
Inspection reports can be lengthy and appear that the home is falling apart. So be prepared. The inspector will often point out major and minor issues, and as mentioned above maintenance of the home.
Sellers
For sellers, conducting a home inspection (or pre-inspection) before listing their homes puts the control back into their hands.
When the buyer inspection finds problems, it can impede negotiations and cost the seller more in repairs. By having a pre-inspection, the seller can help eliminate any surprise findings after an offer has been made. The seller can make repairs before placing the home on the market and possibly even increase the value of the home.
A pre-inspection can also serve as a great marketing tool. Sellers are required by law to disclose any known defects in the home. Having a pre-inspection report available for buyers tells them that the seller has nothing to hide. It also gives them a clearer picture of the condition of the home.
If there are major problems found during the pre-inspection, it gives the seller an opportunity to disclose the condition up-front, making it less likely for the buyer to pull out of the deal or try to renegotiate the price.
Sellers really resist having their homes inspected. Why - because they know the buyer will be having their own inspection so why bother spend the money. I would rather know what the issues are and take care of them before the home is on the market. This gives me the choice to fix them myself or bring in a licensed contractor for the more extensive problems. And knowing the true condition of a home can bring peace of mind to buyers and sellers; and be one less hurdle in the home buying and selling process.
Your real estate sales professional will be able to provide you with a list of certified independent home inspectors in your area. The cost of these home inspections depend mostly on the size of the home, whether it is built on a slab or is raised, and one story or two, but typically range between $250 - $400. Because I want the inspector working for my clients, I always recommend my clients pay for the inspection