Posts Tagged ‘Property Inspections’

Property Inspections: How Important Are They…And Who Pays for Them?

As home prices inch their way back, I’m seeing more “regular” listings in our inventory, not just foreclosed homes and short sales.  That’s encouraging news for both sellers and buyers.  Sellers who have been holding out are putting their homes on the market now, and these regular sales are quite appealing to many buyers.  “Why is that, Lexie?” you may ask.  Much of our inventory of homes for sale in the past year has been distressed properties.  When a home is owned by a lender, they are not willing to provide inspection reports—and they want As-Is sales.  That means they are not willing to make any repairs to the home.  What you see is what you get. 

 In contrast, traditionally sold homes generally are, overall, in better condition.  Because sellers don’t want surprises that could affect their bottom line, many are willing to pay up-front for inspection reports.  Having inspections done prior to putting a home on the market makes good sense.  Buyers can go over the provided reports with their agent before they write a contract.  Buyers don’t want surprises either.  They benefit by having a better idea of what they’re bidding on and, once they have the contract, they won’t need to have the provided inspections repeated.  Having inspection reports available benefits the seller also because it not only gives them an opportunity to correct some of the items mentioned on the reports, but it also decreases the chance of the buyer backing out after winning the contract. 

 Sometimes a seller is not willing to pay to have inspection reports done.  In this case once the buyer has won the contract, he has a certain number of days to have inspections done and to review the resulting reports.  In this case of course the buyer pays for them.  “What inspections should I have done on the house I’m buying?”  That depends on the house.  Does it have a fireplace?  Does it have a pool?  Did the seller provide any inspection reports?  Each house is different.  Your agent can assist you in determining which inspections should be done, in ordering those inspections, and being at the house when inspections take place.  Are termites brunching on beams or enjoying sub-floor for supper?  Does the home have clogged arteries with corroded pipes?  Regardless of who pays for the inspections, both parties will have a clearer idea of the condition of the home being sold, resulting in greater peace of mind for all parties involved in the transaction.