5 Benefits to Getting a Home Inspection
When it comes to real estate transactions, home inspections can benefit not only the buyers but also the sellers, real estate agents, and lenders. In order to understand why a home inspection done by a professional is beneficial to all the parties involved in a real estate transaction, let’s take a close look at the 5 most important benefits of this type of inspection.
- Buyers Know Exactly What They’re Buying
While a live virtual tour and a final walk-through, which allows you to visit the property in person before it becomes yours, can give you an idea of what a home offers, there might be different hidden problems that not even the seller knows about. Rather than simply taking the seller’s word for it, having a home inspection done by a professional will provide you with tangible proof in the form of an inspection report. In a nutshell, the report will indicate all the seen and unseen problems, giving you important information about the condition of the property you want to purchase, so you’re not caught off-guard after buying the home.
By simply including a home inspection contingency in your purchase agreement, which allows you to have the property inspected prior to closing, you can renegotiate the contract or walk away from the deal without any penalties if significant defects are revealed by the inspection. However, make sure that you inform the seller about your intent to cancel the transaction within the deadline stipulated in the contract.
- Sellers Can Sell Their Homes Faster
If you intend to sell your home, having a home inspection done even before putting your property on the market can help you sell it faster. Also known as a pre-listing inspection, a home inspection performed before you list your home for sale provides you with valuable information about the condition of your property as well as the extent and nature of any defects identified. This gives you more control over the repairs that need to be done and allows for sufficient time to repair your home before putting it on the market. As well, having a pre-listing inspection done can help you set the right price for your property, so you can sell it within a reasonable time frame.
A pre-listing inspection could also reveal the fact that your home is in good condition, which means that your property might be worth more than you think. Additionally, this inspection can help you better comply with the law that requires sellers to disclose information about any issues that may adversely affect the overall condition and market value of properties. If a seller fails to disclose certain defects about his or her home, the buyer can terminate the contract in case that the home inspection reveals major structural problems or other issues that are costly to fix. This means that you’ll need to find another buyer and start the home selling process all over again. If the buyer purchases the home without being aware of the defects, you may have to defend a costly lawsuit brought by the buyer after he or she moves in.
- Real Estate Agents Get Complete Information about Properties
If you’re a real estate agent, a home inspection will give you detailed information about the properties for which you coordinate the real estate transactions. For instance, during your visit you may observe cracks in the wall, mold, water stains, and other issues during your initial walk-through. You would be unable to decide whether they’re superficial, which means they can be fixed easily, or indicate more serious problems that require the expertise and experience of a specialist along with specific materials and repair methods.
If you’re the buyer’s agent, you can use the home inspection report in addition to your own walk-through to advise your client on the most appropriate price to offer. As the seller’s agent, you can advise your client on the right asking price based on the pre-listing inspection, if available. Therefore, without a home inspection, which provides accurate and complete information about the condition of a home, it’s almost impossible to act in the best interest of your clients and help them make informed decisions.
- Lenders Protect Their Investment
Home inspections aren’t a mandatory requirement for a mortgage. However, lenders typically require home appraisals, which also involve the inspection of certain parts of the home. Home appraisals and inspections share many similarities, but they’re not the same. While a home inspection assesses the condition of a home, an appraisal is meant to determine its market value. Once the appraisal is complete, the final report is usually sent to the lender.
A home appraisal protects both the lender and buyer by preventing them from offering more money then the home is worth. Furthermore, if the actual market value of a home is lower than its purchase price, and the borrower defaults on the mortgage, the lender might not be able to sell the home for enough money in order to cover the outstanding mortgage balance.
- Home Inspections Reveal Problems Even in Newly Built Homes
Many homebuyers who intend to purchase a new construction home may think that a home inspection is just a waste of money. Nothing could be further from the truth. Some common issues that home inspectors typically find in newly built houses include:
- poor drainage, improper grading, and foundation cracks, which could lead to water and structural damage over time;
- damaged or rotten siding, which may negatively impact the structural integrity of the home;
- problems with wiring and plumbing, including improperly wired outlets, improper piping, and even plumbing leaks;
- HVAC problems, which could negatively affect a home’s comfort and energy bills;
- insufficient home insulation, which may increase the energy bills.
Whether they’re called home inspections, pre-listing inspections, or appraisals, all the inspections mentioned above have the same purpose: to inspect all the major components and systems in a home and indicate any problems that may negatively affect its overall condition and market value. The only differences between these types of inspections are the customers for whom the inspections are being performed and the dates at which they occur during real estate transactions. By simply getting in touch with our professionals, you can learn more about home inspections and appraisals and the way they can affect real estate transactions, mortgage applications, and even the mortgage amount you may qualify for.
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