Homebuyers are a worrisome lot, especially first time home buyers. While their concern is justified in that purchasing a property is a significant investment, their concerns can be hard to deal with as a seller.
Even real estate agents often struggle to placate home buyers with their never-ending lists of concerns. Just about every single buyer in the nation will want to have a home inspection performed before moving forward with the purchase.
Their banks also require a home inspection to be performed before signing off on the financing to close the deal. Here’s what you should know about home inspections and why buyers should always get one.
Why Are Home Inspections Such a Big Deal When Buying or Selling a Property?
You might be wondering why home inspections are such a big deal and why buyers are so insistent about them.
For the buyer, buying a home is a dream come true. It’s a step up in life, and it’s something that they’re simultaneously excited and incredibly nervous about.
It’s just another investment for a bank, and like any investment, they will want to make sure that they aren’t going to lose money on it.
Of course, buyers like to think that they’re just as heavily financially invested in the deal, but the bank is really most at risk financially.
When you have a mortgage, owning a home is like a more glorified version of renting, at least until the loan is paid off. While the buyer might not be as directly invested financially, they are most certainly invested emotionally.
The emotional aspect is part of the reason why they can be so picky and freak out over what seems like the smallest of things.
Some buyers like to bring their folks along with them when checking out a property. For those lucky enough to have a handyman in the family, we often want to lean on their knowledge and skills to help spot potential problems with the home.
Although having a parent tag along to check out the house and look for any issues might be of great comfort to the buyers themselves, it won’t instill much confidence in a bank. That’s why they will insist on having a home inspection.
Ultimately, the reason you always need to have a home inspection comes down to the buyer and their bank’s interests. Unfortunately, home inspections don’t always bring good news for the seller.
Home Inspections From the Seller’s Perspective
The only significant benefit that a home inspection offers to a seller aside from completing a prereq for closing a deal is that it could help them command a higher price.
Although an appraisal will be the ultimate test for value, passing a home inspection can give sellers the ability to refute various buyers’ concerns or complaints.
For example, if a buyer tries making a lowball offer because they have been insisting that something is wrong with the home structurally, and the home inspector doesn’t find anything wrong, they’ll have to come back up in price.
If, on the other hand, the home inspection goes badly and the inspector finds that there are several severe problems with the home, the deal will go up in flames.