Today, we’re looking at the often-overlooked details of home inspections. What are the real costs, not just in dollars, but what sacrifices are you making?
Keep reading to understand the implications of a home inspection, whether you’re buying or selling a property or simply maintaining your current abode.
How Much Does a Home Inspection Cost?
The average cost of a home inspection is between $500 and $1,000. The cost can vary based on the qualifications of the inspector and the services provided. That’s not a lot of money when considering the price of moving to a new home and the peace of mind it can bring. The main reason to get a home inspection before buying is to ensure that the property does not require costly repairs. A trained expert knows the signs to look for when it comes to hidden issues in the home.
Should I do a Home Inspection
Yes, you should. But, while it’s always recommended to do a home inspection, there are times when it could end up working against you.
In a seller’s market, where inventory is lacking, buyers are plentiful, and multiple offers are the norm; it’s common that offers with conditions, such as requesting a few days to complete a home inspection, are not even considered. And if they are, the price has to be attractive enough to persuade the seller to consider a conditional offer over firm offer; and, this is where we determine the true cost of a home inspection.
Should I Complete a Pre-Inspection When Selling My House?
Buyers will generally feel more comfortable waiving the home inspection condition if the seller has purchased a pre-inspection. However, few sellers will do this. And, although a pre-inspection does provide some level of comfort, it is usually perceived by the buyer as biased, and if there is no competing offer, the buyer will likely still want to complete their own.
When a seller compares a firm offer with no conditions with one with even one condition, such as a home inspection, the rest of the offer will need to be more attractive to compensate –which usually means a higher price. In a recent episode of KT Confidential | The Real Estate Podcast, Ariel and Adrian discussed their opinion on how much more attractive the conditional offer would need to be, what the seller should consider when deciding between the two, and the risks associated with both options.
How Long Does a Home Inspection Take?
It takes about three or four hours to complete a home inspection. It depends on the size and age of the house, and the inspector. Things they look at during the inspection may include the roof, foundation, electrical systems, heating and air conditioning, and whether there are leaks in the toilets, showers, or faucets. Inspectors also carry special tools, such as a moisture meter and infrared camera for a more detailed understanding of the condition of the house.
How to Handle the Results of a Home Inspection
As a buyer, you have several options after a home inspection:
1. You can accept the home as is.
2. You can walk away from the sale (assuming your condition was written in such away that permits you to)
3. You could attempt to negotiate with the seller to remedy or compensate for deficiencies, which they may or may not agree to.
For the buyer, the question becomes: what deficiencies could you find during the home inspection, and what potential cost could there be, relative to your risk tolerance and financial position. And, do those costs, when budgeting conservatively, come in higher or lower than how aggressive you need to get on the purchase price when including the condition?
In a competitive market where other buyers are after the same property, you may be better off making a firm offer, having an inspection done afterwards, and paying the costs of any deficiencies yourself.
Will you be including a home inspection with your next offer? Let us know!
