Regardless of whether you are buying or selling your Summit or Park County home the inspection is an important, and sometimes stressful, part of the process for all parties. The goal of the inspection is to inform the buyer about the integrity and condition of the home. This means the good and the bad. While it’s important for buyers’ peace of mind, sellers may worry that the inspection will uncover a previously unknown issue with the home. To ensure the best outcome for all parties it’s important to use an experienced and certified inspector. Let’s take a look at what you can expect from the inspection process.
Who Pays For The Inspection?
The inspection is part of the buyer’s due diligence. The buyer hires the inspector to work for them, and so the buyer pays for the inspection. A typical home inspection will cost around $400-$500, depending on the size of the home. Real estate agents are not permitted to hire an inspector for the buyer. However, I always offer a number of trusted vendors for my clients to choose from. Buyers should be prepared for items to be identified in an inspection and to understand that when you are buying an existing home things will need to be fixed or updated. Window leaks, doors needing to be adjusted, caulking around bathroom tile, and appliance issues are common. I make it a practice to buy a home warranty for all my clients to help give them a sense of greater security with their new home.
If a seller is concerned about issues that may arise during the inspection they can hire their own inspector to do what is called “a reverse inspection”. This will give them an opportunity to make any needed repairs before they put their home on the market; thus avoiding any surprises from the buyer’s inspection.
What To Expect From An Inspection
Every buyer and seller goes into an inspection hoping for an A+, however, that’s just not realistic. An inspector will find something wrong with every home, even a brand-new one. Sellers shouldn’t stress too much when the inspector finds something. Every home has moving parts, is exposed to weather and something is always bound to break. If the seller has been maintaining the home well the inspector should only find minor problems that are easy to fix. These likely will not hold up the purchase of the home.
Once the inspection has been completed a buyer can request a seller to fix issues or pay for problems to be fixed. The seller can then agree because they want to move forward, disagree or compromise and meet in the middle. Some buyers are tempted to ask sellers to fix every single issue on the list but I don’t recommend doing this. Both buyers and sellers should pick their battles carefully and separate the issues the inspector found into minor or major problems.
It’s also important to be realistic about the effort and cost associated with making repairs. Does it make sense given the agreed-upon price of the home? Your real estate agent should be giving you advice and explanations of everything in the inspection report so that both the buyer and seller are treated fairly. The best-case scenario is that the buyer and seller meet in the middle, otherwise you risk the chance of either party walking away unhappy.
Dealing with Major Issues Found During Inspection
Sellers should always consider the possibility that major issues could be found during the inspection of their Summit or Park County home. Generally, major issues are those that require professional contractors to do the repairs. If the inspection uncovers any major issues it is important to get a contractor to assess the situation and give a quote for repair costs. If the issue can be brought down to a dollar amount then it can be negotiated.
Sometimes it’s impossible to do repairs right away because of the weather. Exterior stucco problems are hard to fix in the middle of winter! But the buyer and seller should settle on a price and then discuss when and how the problem is going to be dealt with. One option is that the price is reduced or there is a seller concession to be paid at closing so the buyer can fix the problem. Another option would be to have the seller fix the problem before closing. Often times in this situation they hire the buyer’s preferred contractor and once work has been completed all parties agree on the final result before closing.
Seller Property Disclosure
What happens if the parties are not able to agree on repairs and the buyer decides to walk away? When the seller and the listing agent are made aware of any major issues they are ethically and legally bound to disclose known adverse conditions of the home. If a buyer terminates the contract, the seller will have two options. Either fixing these issues or adding them to the Seller Property Disclosure.
If the seller doesn’t want to spend money on repairs they will likely need to reduce the price of the home to reflect the work needed. Even then, there is the possibility that the next interested buyer will be scared away or ask the seller to fix the same issues. Once sellers have factored in the holding costs of delaying the sale of the home, there is an incentive for them to work out a solution on the major issues with the first interested buyer.
Every home and every transaction is different. It’s important to discuss all of your options with your Real Estate agent.
How Can We Help?
We hope that you’ve found this information about the home inspection process in the Summit and Park County area informative. If you need buying or selling guidance please reach out! We will also continue to provide you with relevant and up-to-date information here on our blog.
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Best Regards,
Scott & Anne Lindblom
Broker Associates
[email protected]
[email protected]
Scott: 970-485-4065
Anne: 608-345-2734
www.LindblomGroupe.com