Who Orders the Inspection When Buying a Home?
Gain clarity on the home inspection process. Understand the responsibilities of involved parties and how the assessment informs real estate transactions.
A home inspection is a professional, visual assessment of a property’s physical condition. Its main purpose is to identify existing or potential issues and defects before a real estate transaction is finalized. This process provides valuable information, helping all parties make informed decisions about the purchase.
The Homebuyer’s Initiative
When purchasing a home, the prospective buyer typically initiates and funds the home inspection process. This step is a standard part of the due diligence undertaken by buyers, allowing them to thoroughly understand the property’s condition and anticipate potential repair costs. Buyers often include an inspection contingency in their purchase agreement, which provides a window, typically 7 to 10 days after the offer is accepted, to conduct the inspection and review the results without penalty.
The buyer is responsible for selecting a qualified, independent home inspector, often choosing a professional certified by organizations like the American Society of Home Inspectors (ASHI) or InterNACHI. Scheduling the inspection within the agreed-upon contingency period is important to ensure there is enough time to address any findings. While not mandatory, buyers are often encouraged to attend the inspection to observe the process firsthand and ask questions. The cost of a home inspection generally ranges from $300 to $500, though this can vary based on the home’s size, age, location, and the inspector’s experience, with larger or older homes potentially incurring higher fees.
This fee is typically paid directly to the inspector at the time of service and is not usually rolled into closing costs or the mortgage. Buyers cover this expense to ensure they receive an unbiased assessment of the property. If the inspection uncovers significant issues, the buyer can decide whether to proceed with the purchase, negotiate for repairs or a price reduction, or, if allowed by the contingency, withdraw their offer.
The Home Seller’s Initiative
While typically the buyer’s responsibility, a home seller may opt to order a pre-listing inspection before placing their property on the market. This proactive approach allows sellers to gain a comprehensive understanding of their home’s condition upfront. By identifying and addressing potential issues before buyers conduct their own inspections, sellers can often make repairs on their own terms, potentially saving money by choosing contractors and materials without time pressure. This also provides an opportunity to ensure the home is priced accurately based on its true condition.
A pre-listing inspection can increase transparency for potential buyers, fostering trust and potentially streamlining the negotiation process. Sellers can disclose known issues and present a more confident position regarding the property’s value. Providing a pre-inspection report to prospective buyers can also reduce the likelihood of last-minute surprises or issues during the buyer’s inspection. This can lead to a smoother and faster sales transaction, benefiting both the seller and the buyer.
Having a pre-listing inspection can also give the seller a stronger negotiating position. If the seller has already made necessary repairs or factored the cost of identified issues into the asking price, they are better prepared to address buyer concerns. This strategy can minimize the impact of inspection-related negotiations and help maintain the asking price. While not universally adopted, a pre-listing inspection is a strategic move that can provide advantages in the real estate market.
Interpreting the Inspection Report
Upon completion of the home inspection, the inspector provides a detailed report outlining their findings. This document typically includes a summary of the most pressing issues, detailed observations of various systems and components, and often photographic evidence of identified problems. The report covers areas such as the foundation, roof, plumbing, electrical systems, and heating and cooling units, as well as the interior and exterior of the property.
Reviewing the inspection report requires careful attention, focusing on major issues that could impact safety, structural integrity, or significant systems, rather than minor cosmetic concerns. The report may use symbols or codes to indicate the severity of each issue, such as “S” for safety concern or “D” for defect. It is advisable for the buyer to discuss the report’s contents with their real estate agent and, if necessary, with the inspector for clarification.
After reviewing the report, the buyer, in consultation with their agent, will determine the next steps. Common actions include requesting the seller to make specific repairs, negotiating a credit or price reduction to cover the cost of repairs, or proceeding with the purchase as is. For significant issues, the buyer might obtain estimates from qualified contractors to understand the true cost of remediation. If an agreement cannot be reached on necessary repairs or concessions, the buyer may, depending on the terms of their purchase agreement and contingency clauses, choose to withdraw from the transaction without financial penalty.