real estate

The Role Of A Home Inspection In The Selling Process

The Role Of A Home Inspection In The Selling Process

A home inspection is an assessment of the structural components and physical condition of a residential building. In determining whether or not a home is suitable for purchase, the inspection provides information on any potential annoyances such as mold, pest infestation, poor insulation, or faulty wiring. Sellers might also request an inspection to help determine their asking price. You can click here to see more.

Here are some of the roles of a home inspection in the selling process.

Price-Determining Tool

Sellers are able to accurately establish their asking price when they accept an offer based on a home inspection. The seller and buyer go over the results of the inspection to determine what repairs, maintenance, or upgrades need to be completed before closing.

Reassurance and Security

Buyers are able to feel more confident in purchasing a home with an inspection that has been performed. This reassurance comes from an objective review of the structure and safety features in the building.

Negotiation Aid

Home inspections help the buyer and seller agree on a reasonable final sale price. The inspection is conducted by a third party, which helps eliminate any hidden agendas during negotiations.

“As Is” Agreement

Following the inspection, both parties acknowledge that the buyer is purchasing the home in its current condition with no promises of future repairs or improvements being made. Both parties also agree that they will be responsible for making any requested repairs or replacements after closing.

Purchase Commitment

Buyers are able to make decisions on the purchase of the home based on an inspection conducted by a third-party. The buyer does not have to wait for repairs or improvements before making a decision. This commitment also supports the valuation of the home during an appraisal.

Repairs and Upgrades Costs

The buyer is able to negotiate a lower purchase price during negotiations because the seller acknowledges that they will have to spend money on repairs and upgrades after closing.

Appeal and Value

The value of a home for resale after the sale can increase based on the buyer’s knowledge of any potential safety or structural issues. This knowledge makes a home more appealing to future buyers.

Fixed Price Settlement

The cost of buying and selling a home is fixed at a price agreed upon during negotiations, which takes out the stress and responsibility of financing repairs after closing.

Published by Jennifer Esseiva