​Why You Should Have Your Home Inspected Before Selling

A home inspection is one of the most important aspects of a real estate purchase contract. In many cases, a home sale is contingent on a pre handover inspection that will occur within a short period. A property handover checklist may include smoke alarm testing and roof inspections. If any issues are discovered during the home inspection, the buyer has the options of walking away from the sale or making a counteroffer to address the inspection results. Property value increases after a home inspection.

Counteroffer to Fix the Problem

At times problems come up that are difficult to fully address without attempting to fix. For example, it is difficult to tell how deep a mold ingrained on the bathroom drywall goes without actually opening the wall. If a buyer experiences such a problem during an inspection, he will have to go to the seller with a counter offer contract to request a remedy for the problem. The buyer has several options in such a case: he can accept the offer and make necessary repairs, reject the counteroffer and end the transaction, or counter back by offering an incentive such as credit for the buyer willing to do the work.

Counteroffer for Credit

Sometimes the property may have a problem that is not immediately noticed by a property inspection company. For instance, the roof may not have leaks but may be at the end of its useful life and needs to be replaced. In such cases, the buyer may counter the seller’s offer and ask for credit back of enough money to replace the roof. The roof replacement, in the example above, may be done before or after the sale. The seller has the option of agreeing to the counter offer, rejecting the offer, or countering the offer with a requested credit.

Counteroffer for Lower Price

In some cases, a significant problem arises during the inspection that was not previously apparent. For example, the inspector may discover a significant dry rot that threatens the stability of the house. In such a case, the buyer should determine if repairing the rot would cost less than 10 percent of the property value. The buyer should then prepare a counter offer contract and take it to the seller. The seller may reject the contract or counter with a reduced sales price. This option is suitable for buyers who are also contractors because they can do the repairs on their own.

Walk Away

Some problems identified in a home inspection may be so significant or costly to repair that the buyer may decide not to buy the property. In such a case, the buyer may be required to notify the seller that he is opting out of the contract.

Mortgage Lenders

Many people obtain mortgages from lenders to purchase their first or subsequent homes. Although a lender may have an interest in the condition of a property, the lender’s greater interest is in the appraisal value of the property. The appraisal value of the property will help the lender determine the amount of money to lend to the mortgage applicant. A home inspection helps mortgage lenders determine if the value of collateral is equal to or exceeds the loan amount.