Why are home inspections so important in real estate transactions and what do they mean for your home purchase or sale? Home inspections can greatly impact the success of buying or selling a home. Are you currently in the market to buy or sell a property soon? If so, then I think you will find the following useful.
While inspections are not required, they are highly recommended. I like to compare home inspections to skydiving. A parachute is not required to jump out of a plane, but it is highly recommended! In a hot market, buyers might decide to waive their right to an inspection in an attempt to make their offer more attractive when there are multiple offers on a property. But be careful: The cost to repair some issues that an inspection would reveal could when added to the purchase price be more than the buyer was willing to pay for the property in the first place.
Inspection results can potentially give a buyer some leverage to renegotiate the deal. If the inspector finds issues that are unsatisfactory, the buyer may have options to renegotiate price or terms, depending on the type of contract that was used. In Florida, if a Standard contract was used, the seller may be required to make repairs up to a certain limit. If an As-Is contract was used, then the buyer may cancel the contract anytime prior to the expiration of the inspection period and the seller is obligated to refund the buyer’s deposit. If the seller does not want to lose the deal, they may be receptive to a lower price or other concessions.
Buyers typically pay for an inspection up front. Home inspection costs depending on location and inspector. They typically cost between $250 and $500 or more depending on the size of the property.. Most home inspectors that I know want to be paid at the time of the inspection rather than waiting to be paid at closing since there is no guarantee that a property will close. Especially if the inspection reveals multiple issues.
Should Sellers get a pre-listing inspection? Personally, I think this is a good idea. Getting an inspection before putting your home on the market gives the seller the opportunity to fix issues that can be a road block when the property goes under contract later. Most buyers will still get their own inspection, but when they do, the chance of finding any defects that can be used to renegotiate the deal is slim. Sellers should also keep in mind that in Florida, they are required by law to disclose issues their inspector finds if they haven’t been fixed.
If you’re preparing to buy or sell a home, get in touch with us to start working with an experienced Gulf Life Real Estate professional.
