When it comes to a real estate transaction, there can be many question marks for both the buyer and seller. That’s why pre-sale home inspections are so popular. According to the U.S. General Accounting Office, “more than 85 percent of homebuyers who applied for a mortgage also requested an inspection.”
This type of examination takes a look at things like a home’s foundation, electrical work, plumbing, roofing and anything else that may impact property value. Having a home inspection performed by a professional is beneficial to both parties and offers some distinct advantages.
Benefits for the Buyer
Although a walk through gives a buyer a basic idea of what a home offers, it’s almost impossible to know about all the details. Maybe there is roof damage or a termite infestation that isn’t immediately visible, but could cost the buyer thousands of dollars in repairs later on. An inspection ensures that there aren’t any unwanted surprises, and the buyer can know exactly what they’re getting.
It helps the buyer make a highly informed decision, and there is more transparency. Purchasing a home is a huge financial investment and not something to take lightly. An inspection eliminates many “what ifs” to give the buyer more peace of mind if they do decide to make a transaction.
A buyer also has more leverage when making negotiations because they can often talk the seller down if there are known issues with the home that will cost extra money to repair. This puts them in a better position to obtain a property at a fair price, and they’re less likely to get hit with huge repairs afterward.
Benefits for the Seller
Having an inspection performed ahead of time is helpful to the seller because it should expedite the overall process and get the property sold with minimal setbacks. If an inspector finds a significant problem, the seller can either have it repaired or disclose the issue to the buyer. Otherwise, it can cause delays and may take longer until a deal is finalized.
When a seller is equipped with a full knowledge of the condition of their home, it adds to their negotiating leverage. Rather than simply making claims and having to go on their word, a seller can provide a buyer with tangible proof via an inspection report. In turn, this should increase the seller’s confidence level and empowers them during the negotiation process.
Finally, a home inspection is important from a legal standpoint. After an examination, a full disclosure will be made, which will protect the seller from the threat of legal action in the future. In the event that a buyer is dissatisfied with the condition of a property, they won’t be able to file a lawsuit because there was a full disclosure. This means that the seller can have peace of mind once the transaction has been completed.
By looking at all of these advantages, it’s easy to see why it’s smart to have a home inspection performed. It’s mutually beneficial and increases the likelihood that both the buyer and seller strike a fair deal. That way everyone wins, and both parties can feel good about the transaction.
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