Would You Rather Spend $400 or $12,000? Why You Need a Home Inspection

Another agent in my office recently listed a Portland house which the seller (Let's call her Mary) had purchased without a home inspection (or Realtor representation).   The buyer (Let's call him John) did buy a home inspection, which discovered mold, faulty wiring and hazardous attic insulation, among other things, all of which will cost Mary $12,000 to remediate.  That $12,000 is an expense that most likely could have been paid by the seller when Mary bought the house.  So in this case Mary saved $400 (a typical home inspection fee) and is now spending $12,000 to complete the sale to John. 

Even beyond that, I recommend to all my clients, buyers and sellers both, that they purchase a home inspection.  The advantage for a seller is that any significant issues are found and can be addressed by either fixing the problem, offering a credit, or adjusting the list price.   The advantage to a buyer is that significant issues discovered will usually be corrected at the seller's expense.

My recocommendation to all clients, whether buyer or seller, is to not have the seller do the repairs.  It's much better to either credit the amount of necessary repairs to the buyer at closing, or adjust the sale price by that amount. That way a seller doesn't have to deal with the repairs or any unhappiness from the buyer about the quality of work; a buyer gets to select who and how the work is done without worrying that the seller did the work "on the cheap".  

 

 

Posted on August 25, 2012 at 6:50 pm
Dave Sutton | Category: Home Buying, Home Inspection, Home Inspection, Home Selling | Tagged , , , , , , , , , , ,