What to Expect with Inspections
Whether buyer or seller, everyone deals with the inspection process in a real estate transaction. Many folks dread inspections: What will be revealed about the home?! But in the case of inspections, knowledge is key to leverage in a real estate transaction.
Which Inspections Are Needed?
There are a myriad of inspections available: home, pest (aka termite), roof, pool, septic, HVAC—even electrical, plumbing, foundation…Traditionally, the buyer makes an offer and, once accepted, they work with their agent to order inspections. The inspections must be completed within the time period agreed in the purchase agreement. The determination regarding which inspections to order depends mainly on the age and condition of the property. This decision is where agent experience can be a huge benefit. At a minimum, most buyers order a home inspection and a pest inspection.
How to Choose an Inspection Company
Seasoned buyers may have a company in mind they wish to work with. Checking platforms such as Yelp.com and NextDoor.com may help with finding recommendations. Very often, the buyer’s agent provides the names of companies they have worked with who have satisfied clients, though ultimately it is the buyer’s choice. Whoever is chosen, the inspector(s) should be licensed and vetted.
How Long Does an Inspection Take?
An inspection can be as short as two hours or take place over several days, depending on the size of the property and what in particular is being inspected. As a general rule, inspectors are available at the end of an inspection to share their findings with the buyer. It’s always prudent to get a written report as well.
What Do Inspectors Look for?
Home inspectors check the overall condition of the house, such as: HVAC, water heater, kitchen appliances, faucets/showers/drains, electrical outlets, thermostats, windows, evidence of pests, overall structure, condition of home. Pest inspectors check for any sign of wood destroying organisms: termites or dry rot. In any type of inspection (including roof, pool, etc.), inspectors are checking to see if things function properly, if things are broken, and if things are safe.
What Happens After an Inspection?
The information gathered from a buyer-ordered inspection helps assure the buyer that the home is structurally sound and safe. The buyer and their agent may decide that certain issues found in one or more of the inspections should be repaired and thus they issue a Request for Repairs to the seller; or perhaps their agent negotiates a credit or price reduction. The seller may not agree with these requests, and this is part of the transaction negotiation process where having a skilled agent is highly advantageous.
Do Buyers Have to Get Inspections?
The answer is no. In California, the buyer can waive inspections if they wish.
What About Pre-Listing Inspections?
It is becoming more common for sellers to order pre-listing inspections. Why would a seller pay for inspections and possibly open a Pandora’s box? The benefits to obtaining inspections pre-listing are that the seller can:
- determine if they wish to make repairs prior to listing
- determine a listing price based on knowing inspection results
- decrease the time and stress of negotiating since all the cards are on the table, so to speak
Offers received with the knowledge of inspection findings are generally closer to the listing price, since the buyer knows much more about the true condition of the property when making the offer.
