Who pays for a home inspection?
"Doesn't the buyer pay for the home inspection?" We hear this a lot. Yes, the buyer can pay for the home inspection. The seller can also pay for the home inspection. Why would one do this? Let's chat about that.
From the seller's point of view
If you are a seller, when would you like to know about any potential issues with your current home that perhaps you didn't already know about?
Let's say you wait. We put your home up for sale. We negotiate the best possible terms and outcome for you as the seller. Within the first 7 business days after final acceptance, we are notified of who and when the home inspection will occur. Once the buyer has all inspections completed during that time period, they then have 3 business days to respond to you, the seller, if
- They are good with the outcome of the inspections and are agreeing to purchase the home in its current condition with no additional repairs to you the seller. (We love this response!) We celebrate with you and move along to the next step in the home selling process. Or...
- The buyer comes back to us and requests XYZ repairs and on Y and Z they would like a professional licensed contractor to do the work and receipts to be provided to the buyer prior to closing. You then have 3 business days to get all bids and have a response back to the buyer, then cross your fingers and say your prayers that they accept your response and we can move forward. You take the contractors that are available during this 3-day period and then you are on the spot to get them done prior to the pre-determined / negotiated closing date you and the buyer agreed on in the purchase agreement. Is your anxiety rising yet? Or...
- The buyer is unsatisfied with the results of the home inspection and walks away, getting their earnest deposit returned to them. You then have to put the home back on the market and have to now disclose any material defects of the property and most likely will have to repair them anyway as well as putting your home back on the market which, let's be honest, doesn't look good to any potential buyers out there looking for a home. The next buyer will also want to see the previous inspection report and want to know what have you done to fix any of said issues in the report.
Is your head spinning yet?
Let us help you stop the spinning and get some control back in your life! Here lies the benefits of getting a pre-inspection.
- Do you Mr. and/or Mrs. Seller have to pay for the inspection? Yes.
- How much do they cost? Based on finished square footage, but usually in the $400 - $500 range. If you have your home inspected prior to listing it, you will know what you are dealing with, if there are any major defects that you need to address immediately, and be on your timeline with the contractors that you choose to work with. And did we mention that we do have a list of contractors that we can provide to our clients to assist you in getting the best repairs at the best price, creating the best potential outcome for you?
- Could having a pre-inspection delay when your home goes on the market? Maybe.
- Is that better than delaying closing once you have movers, utilities, and closing on your new home all lined up? You bet it is!
Now you have an inspection and receipts that you can provide to ALL potential buyers who come through to look at your home and then know right then and there what they are buying. When you get an offer, then it's all out there with full transparency. The buyer still may want to get their own home inspection, and that's ok. The likelihood of anything new and major to pop up in this time frame is very low.
We call this risk tolerance and management. If we can help you lower your risk and create a smooth transition during one of the most stressful times of your life, we will encourage this all day long. We feel that whatever information we can provide to our clients to help you make the best decision that creates the best possible outcome for you is our number one goal.
What are you waiting for?
If we can help you or anyone you know buy or sell real estate and answer any inspection questions or all things real estate, don't hesitate to reach out to us--we love referrals!
Lindsey & Dixie