HOME INSPECTION
A sales contract may contain any number of contingency clauses based on wood-boring insects, lead-based paint, asbestos, mechanical or structural systems, wells, sewage facilities, radon or other toxic materials.
A home inspection costs a few hundred dollars, but it can point out defects that cost thousands of dollars to repair. The home inspection is designed to protect the buyer. Inspections can keep you from making a mistake that will cause you financial harm. Realtor's® are knowledgeable about home inspectors and can provide you with a list of companies that are bonded, professional and carry errors & omissions insurance.
Savvy sellers typically obtain a home inspection prior to listing their house. By obtaining a certified inspection, the homeowner has the option of making the necessary repairs or to price their home to reflect the cost of repairs. Typically sellers have listed their house, negotiated a price and assumed that the inspection would not reveal any surprises. When a problem is discovered, after the negotiations are complete, it falls on the seller to make the repairs or lose the buyer. It is rare that a buyer will contribute to the cost of repairs after having negotiated what they believe to be a fair price. The homeowner that discovers a problem, after negotiations, typically will:
In the majority of cases there will be no problems discovered and the homeowner will save the money they would have spent on a home inspection. However, if a problem is discovered the homeowner is the one that will suffer the loss. When a structural problem is discovered the homeowner cannot hide it from future buyers. A Realtor® is required to inform all future buyers. The question the seller has to ask is, "Would I prefer to negotiate a price for my house knowing all there is to know about its present condition, or would I prefer to negotiate what I consider a fair price assuming that my house is in top condition?" The seller who assumes wrong stands to suffer a substantial loss.