If you’re looking to buy or sell a home, one of the important parts of the process includes the role of a home inspector. A home inspection is a thorough assessment of the home’s condition. It helps buyers identify any repairs that may need to be made to the home or potential problems that may exist down the road. And while inspections aren’t necessarily required to obtain a mortgage, if you’re looking to buy, it’s a low-cost way to ensure you’re making a good purchase and to prepare yourself for the future.
Whether you’re in the buying or selling stages, it’s good to know how to navigate a home inspection and what to do if repairs are required. Here’s what to expect.
What an inspection covers
The home inspection is paid for by the potential buyer once an offer is made, but before the home is purchased. This allows time for the buyer to decide whether any repairs should be made to the home before the purchase is finalized. The inspection typically costs under $500, making it a nominal cost for its value.
The inspection report is extensive and should include reports on the quality of the home’s exterior, interior, plumbing, electrical, air, and fire safety. Inspectors will look for any issues with the foundation and roof. They’ll look for leaks in plumbing, fire hazards, and will ensure outlets are functioning properly. They will also look for pests to identify any potential issues.
The buyer will receive a report post-inspection that details any repairs the inspector recommends be made. From there, the buyer has a few options for moving forward with the sale.
Are repairs minor?
If the inspector recommends minor repairs, the buyer can ask that the seller make any repairs that were identified. Keep in mind, however, that the seller doesn’t have to make the repairs. In today’s market, it’s recommended that sellers make those repairs because a seller can walk away from the purchase if they have concerns about issues with the home. That’s why it’s typically in the seller’s best interest to make the repairs.
If you’re selling and have small repairs to make, get estimates from contractors you trust to look for the most cost-effective way to ensure the sale goes through smoothly. Minor repairs should be easy for a contractor or handyman to knock out before a sale is finalized.
Do major repairs need to be made?
Major repair recommendations that may come from an inspection may include roof damage, a foundation issue, pest or water damage, septic system or HVAC issues, a plumbing problem, and even mold or electrical issues. The inspector will make recommendations on what needs to be done to fix any issues that may exist. And from there, both the buyer and seller can decide how to proceed.
If a buyer has a contingency plan in place, they can choose to not proceed with the sale if any of the repairs are large enough to break the deal. With that contingency plan in place, buyers should receive any deposits back that they had already put down.
If a buyer wants to proceed with the purchase but has concerns about the repairs, there are also smart ways to navigate those repairs. Those include the following:
· Buyers can ask sellers to make the repairs. Keep in mind that a seller can say no to any repair requests. But if the repairs are needed badly enough, those repairs may be necessary for the buyer to obtain a mortgage from their lender. Therefore, it may be in the seller’s best interest to make the repairs.
· Buyers can ask for credit toward closing costs. This can be a great way to help the buyer save money, which can then be used toward those home repairs when the purchase is finalized.
· Buyers can ask the seller to reduce the price of the home to offset the costs of repairs. Much like asking for credit toward closing, a lower home price can make the cost of repairs more affordable down the road.
· The home can sell as-is.
Before negotiations begin, keep in mind the current housing market in the Triangle. Buyers should also want to weigh how badly they want that home, their budget, and how bad some of the problems may be. Taking this approach can help you determine how to move forward with the purchase.
Moving forward post-inspection
When the inspection and repairs are complete and both the buyer and seller are happy with the outcome, it’s time to complete the sale. Whether the repairs have been made already or you’re planning to tackle them when the sale is over, both the buyer and seller should have a plan in place and should feel confident with the decision they’ve both made. Both will receive the inspection report so they’re both aware of what needs to happen both now and potentially in the future.
Final thoughts
Home inspections aren’t a make-or-break task for a buyer. They’re designed to help you become a more informed buyer. Don’t skip on the inspection or else you may have more problems down the road than you bargained for.
The Jim Allen Group provides access to information on this blog/website as a public service for educational purposes only. Although reasonable efforts have been made to ensure that all of the information made available is current, accurate, and complete…[read more]