Home Owner Resources
Are Home Inspections Deal Killers?
June 11, 2018
Whereas a pre-listing inspection (covered here last week) is typically done in the sellers’ best interests, a pre-purchase inspection is similarly done to protect the prospective home buyer(s).
In fact, many home buyers enter into a contract that is contingent upon the approval of the home inspection’s results. In the event that something isn’t as it seems, buyers usually reserve the right to request repairs, ask for a price reduction, or even pull out of the deal as a whole.
With this third option, many real estate professionals have regarded home inspections as the eponymous “deal killers”. But here’s why they aren’t.
If your home has a major issue, it should be fixed before listing it on the market. And if a buyer requests a major change, others probably will, too.
On the flip side, if you’re a home buyer, don’t expect a perfect house. While every home should meet certain quality standards, you’ll be hard-pressed to find a flawless property.
In general, both sides are interested in making the deal work. As long as requests are reasonable, there’s no reason for one side to back out instantly.
If a pre-purchase inspection does uncover severe issues with the property, it would be in a real estate professional’s best interests to supply full disclosure now, instead of having a client discover the issues down the road once it’s too late.
And prior to inspections, many home buyers are viewing properties with rose-colored glasses. Home inspections simply reveal a more objective view of the property.
Illinois is faced with a heavy sellers’ real estate market. The sad truth for home buyers is that they are in thick competition with one another. This scenario makes buyers more likely to look past minor issues with a home uncovered during an inspection.
In fact, homes spent an average of just 54 days on market in April 2018. At such a quick pace, home sellers have numerous options when finding potential buyers.
When a deal falls apart, it’s easy to point fingers at a home inspection. But in reality, realtors and mortgage lenders alike are doing their clients a huge favor by pushing for home inspections. Not only can you better prepare your clients for living in their new home, you’ll most likely win a customer for life by protecting their best interests.