A Seller's Guide to Home Inspections

If you've been thinking about buying or selling a home you might have some questions.

One that often seems to take a backseat, at least until it takes you by surprise, is inspections.

They seem to come out of nowhere. First, you're prepping your home for sale. Then it's on the market. And then suddenly it's under contract and the speed of progression goes from zero to sixty real quickly!

In this article, I'm going to address what inspections are needed. When are they done? Who pays for them? Are repairs required? 

Inspections are done during the Option Period. This is a time frame negotiated in the contract. During which, the buyer has the unrestricted right to terminate the contract. It's usually a 5-10 day period. The shorter the better for the seller.

During this option period, buyers order inspections at their own cost. The needed inspections depend on the loan type and the systems present in the home.

There's the standard Structural & Mechanical inspection. Other inspections that may be needed: Pool & Spa, On-site Sewer, if a septic is present, a Wood Destroying Insect report is required on government loans but not conventional. And there's a laundry list of others.

The inspector's job is to identify any problems, potential problems, code issues, and so on. It's usually a laundry list of high, medium, and low-priority items. Sometimes it seems like inspectors feel the need to justify their existence. But it is their job to point it all out.

We recommend our buyer clients focus on health and safety issues first and limit their requests to high-priority items. Of course, you've got to throw in one or two that aren't deal breakers so there's something to negotiate. But that's a trade secret, not all agents have our experience and expertise. 

Over my 20+ years as a listing agent, I've seen many different approaches. Some buyers take a shotgun approach and ask for everything, and some ask for nothing. It's almost always somewhere in the middle. 

To answer the question, do you have to do repairs? The answer is NO! There is no requirement to do any repairs that were not agreed upon at the time the contract was executed. 

If you choose to do no repairs, you do take the chance of the buyer exercising their right to terminate. Then you're back at square one. It's important to plan for some repairs, especially if the buyer is using a government loan.

There is much psychology involved in a real estate transaction. Making a buyer feel like they've gotten a small win can hold a deal together. Stone-walling can tear a deal apart.

It's my goal to create a harmonious transaction. Ideally, a Win/Win situation for all makes for a successful closing, and isn't that the goal?

As your agent, I'll review the requested repairs and discuss what's reasonable. If it's health and safety related, let's try to take care of it. If it's something that could be covered under a home warranty, let's consider that route too.

There is always more than one way to skin a cat! And everything is negotiable.

I learn something new during each transaction so I've got quite a few lessons under my belt. I'm happy to put that experience to work for you!

We're here to guide you through the sale of one of the largest investments of your lifetime. We take that responsibility seriously and work hard to make sure you're comfortable and well-prepared along the way.

If you're thinking about selling soon, we're here to help. Download our 15-Step Home Selling Checklist