How A Home Inspection Works When Selling Your Home

Table of Contents:

Home Inspections 101

Home inspections are a part of the home selling process that occurs after you as a seller accept an offer. Up until the offer, you have most likely invested a great deal of time updating your home with paint, taking care of minor repairs, hiring a real estate agent, and potentially staging your home. However, once you have accepted an offer, there is still more to the home selling process.

The home buyer will request an inspection of the property. Depending upon the inspection results, a buyer can choose to buy or not buy the property. This can be stressful for sellers as you may not know what the inspector will find during their search of your home.

When Inspections Happen

There are two types of home inspections to be aware of. There are those requested by the seller and those requested by the buyer. The seller’s inspection, called a pre-listing inspection, occurs before the home is listed on the market. The buyer’s inspection occurs after the seller has accepted their offer.

A seller may elect to do a pre-listing inspection to avoid any significant issues that the buyer’s inspector may also find. This gives the seller time to conduct repairs and makes for a faster selling process. However, it could be duplicating efforts on the number of inspections. In addition, it may turn up issues that would better be left to the buyer to find in their inspection report that may not need to be repaired by the seller.

Buyer’s inspections occur after the seller has accepted an offer and before the house can close. The buyer’s choice is to conduct an inspection and negotiate with the seller about any repairs. It also gives them a chance to walk away from the sale if there is no agreement.

Mortgage lenders will require an appraisal to obtain the house’s value, not to be confused with an inspection. There is no requirement for an inspection to be completed by the buyer’s inspector before the house closes. Still, it is a standard practice in real estate transactions and highly recommended.

Home Inspections in Detail

Some may think home inspections are a pass/fail type of test, but this couldn’t be further from the truth. The home inspector’s primary goal is to discover any health, safety, and significant mechanical issues the buyer should know before purchasing. Next, the home inspector reviews the house through visual observation to determine its general state. Finally, the inspector will outline any significant issues and suggestions to remedy, and the home seller and potential buyer will negotiate how to resolve the problems. Of course, the buyer also can walk away from the sale at this point.

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The Home Inspection Process

When inspecting a home, you should follow a detailed process. Most home inspections will take two to three hours for the home inspector to complete. The inspection report will then take a few days to be completed. Those attending the inspection typically include the buyer and buyer’s real estate agent, and the seller’s real estate agent. During the inspection, the inspectors look for major defects and safety issues, including:

• Plumbing problems
• Water damage
• Structural and foundation issues
• Old/damaged roof
• Damaged electrical system
• Garage door operation
• Insect and pest infestation
• Issues with the HVAC system
• Fireplace operation
• Step, stairway, and railing safety

If the inspection turns up major flaws, the inspector may recommend having another expert come in to confirm their findings and give recommendations.

Things that Inspectors Do NOT Look For

There are many things home inspectors do not look for. Home inspectors do not look for aesthetics such as faded paint or cracked tile. Instead, they look for potentially major issues that tie to more significant underlying concerns, such as cracked foundations or mold or moisture issues in the walls.

Other areas home inspectors do not look for include:

• home décor
• finishes
• inside of the fireplace and chimney
• security systems
• screens and shutters
• outbuildings other than a garage or carport

Inspections Affect the Sale of the House

After an inspection, if any issues are discovered in the home inspection report, the buyer and seller can mutually agree to resolve the problems. At this point, the buyer can also walk away from the sale. Here are a few scenarios that could possibly result after completing a home inspection report.

Frequently Asked Questions

Should you get a pre-listing inspection?

A pre-listing inspection can be useful in some scenarios. The potential buyer usually requests a home inspection as part of the home selling process. Requesting an inspection as a seller before an offer is put on the home could be duplicating efforts; however, there are times when the pre-listing inspection is beneficial.

Before listing the home for sale, a pre-listing inspection makes the seller aware of any major issues when the seller needs to sell quickly. If the issues are resolved before the homebuyer requests their inspection, it will create efficiency in the closing process. The good idea is to share the inspection report upfront at open houses so buyers can see how well-maintained the house is. Older homes may benefit more from this strategy, as they are the most likely to have issues as they age.

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When should you NOT get a pre-listing inspection?

Sometimes pre-inspections can showcase a full suite of issues that the seller is legally bound to share with potential buyers that would otherwise not be disclosed or discovered until the buyer conducts their inspection. In some cases, the buyer’s inspector may not find the issues. Pre-listing inspections can deter buyers upfront before they are invested in buying the home and are less likely to accept some flaws.

How is a home inspection different than an appraisal?

There are some key differences between a home inspection and a real estate appraisal. A home inspector is looking for any major issues inside and outside of the home for safety purposes. On the other hand, a home appraiser assesses the condition of the house to decide its value.

Who pays for a home inspection?

The buyer will usually pay for the inspection and hire their inspector. However, in some cases, the inspection cost is split between the buyer and seller. Who pays for the home inspection is specific to each buyer and seller agreement.

Does the seller get a copy of the inspection report?

The completed home inspection report is sent directly to the party who requested the report. In most cases, this is likely the buyer. The buyer can decide if they want to disclose the report’s details to the seller or simply discuss and/or negotiate the cost of any major repairs with the seller.

How do you prepare for a home inspection?

Home inspectors have a checklist they go through when walking through your home. Therefore, it is in your interest to facilitate the inspection and make it easy for the inspector to do their job. Here are a few ways to ensure your inspection goes smoothly.

• Lock up pets, so they do not bother the inspector.
• Install clean filters in the HVAC system. Dirty filters affect the air quality.
• Ensure all light bulbs are not burnt out. Bulbs that are not lit can signal electrical issues.
• Replace missing roof shingles.
• Make sure the dirt next to your foundation is sloping away to indicate there are no basement waters issues.
• Have maintenance receipts to show any repairs you have done to the house.
• Clear crawl spaces in the attic and basement to make it easier for the inspector to get through them.
• Ensure items such as the furnace, water heater, and electrical panel are all easily accessible to the inspector.
• Make sure none of your sinks throughout the house are clogged.
• Repair any cracked windows or broken screens.
• Exterminate your house before the inspection so the inspector does not find any infestations.
• Put a cap on unused gas lines, chimneys, and flues to prevent debris and clogs. If caps are missing, toxic fumes could be released into the house.
• Trim the trees next to your house if they are touching the roof. This is because they cause roof damage which the inspector will look for.
• Reconnect or turn on utilities if the home is vacant and they’ve been turned off or disconnected.

Summary

Home inspections are almost always a regular part of the home selling process. Pre-listing inspections can benefit older homes, but the seller is legally required to disclose all of their findings to potential buyers. A buyer’s inspection is ordered by the buyer and is sent directly to the buyer before making the home purchase. After reviewing the report, usually, negotiation ensues between the buyer and seller to resolve any significant issues. Sometimes this can result in the buyer walking away completely if a deal is not reached. As a home seller, you should always be prepared for the buyer’s home inspection and keep all maintenance records to show you have taken proper care of the house.