Buyers might have heard a story like this one. A potential buyer gave an offer for a house at a time when the real estate market was considered a seller’s market. The buyer’s offer for the house was one of many, and in addition to a bidding war, the seller wanted to sell fast. So they said the buyer would have to waive the home inspection. The house was sold and closed without a home inspection. When the new owner moved in, they discovered a few things that might have affected the offer they put on the home. They now have a few thousand dollars worth of repairs before properly moving into their home. Always ask your real estate agent if you have any questions.
An Inspection Adds Protection
It is true that when the real estate market is in the seller’s market stage, stories like that one can be more prevalent. It doesn’t make getting a home inspection any less critical. A home inspection protects the buyer from making blind decisions and finding out there’s more work than expected on their new property.
Beyond checking the potential need for repairs before the house is closed, a home inspection will also determine the house’s safety, including radon, mold, and carbon monoxide. These possible issues need investigating, especially if the property in question has been uninhabited for a prolonged length of time for any reason.
Home Inspections are Informative
Most equate home inspections as the source of information to know what money buyers (or sellers if it’s so negotiated) will have to invest right then and there. However, a proper inspection will also inform a buyer of what repairs and upgrades might need to be addressed in the future and how far away that future is. That knowledge will allow buyers to budget appropriately and not feel blindsided. Home inspectors can also give an idea of the shelf life of fixtures and appliances and provide the approximate installation age of water heaters and plumbing systems.
In a buyer’s market, it can be a lot easier to ensure a home inspection is part of the closing package, and it can also benefit the negotiation of the final cost of a home. Information provided by the home inspector allows the seller to decide whether to take on the cost and responsibility of any issues or to reduce the sale price, allowing the buyer to take on the cost and burden.
Some sellers may have already done a home inspection to give them an idea of what to address before listing. Even though they have had one done and have the report to provide to potential buyers, a buyer can still have a home inspection done.
In a seller’s market, it can be more difficult as the seller may find buyers willing to waive the inspection, but that action alone may help determine if the house is worth the price listed.
Insurance companies will also look at the home inspection, which will help determine the price of insurance for the property. They will also have conditions, and a home inspection will help potential buyers meet those conditions.
Home inspections in the real estate market aren’t so unique that they are not something that sellers will not expect. A home inspection may seem unnecessary, primarily if the buyer is motivated due to a time crunch or the property is priced correctly. They may feel insisting on a home inspection will sour the deal or make the closing take longer than they’d like. Although including the condition of a home inspection may add more time to the closing, it will undoubtedly save time and money at the end of the day.