The Pros and Cons of Co-Buying a Home With Friends or Family
It's the holidays and as families come together, dinner table discussions are including purchasing homes as a family, whether as a primary dwelling or vacation home.
Home inspections are commonly performed on residential and commercial properties when the property is listed on the real estate market. Inspections are often a common step to take before closing to determine the overall condition of the building. For those who are new to selling or buying a home, it's important to understand if a home inspection is necessary.
When and Where Home Inspections are Performed?
Home inspections are performed on most houses to determine if any underlying defects are present or if significant repairs need to be performed. Most sellers perform a home inspection before listing their house to determine if they need to replace the roof or fix the plumbing system. Buyers also perform inspections before closing on the house to ensure it's in good condition and confirm the home value. If any repairs are needed, it may allow them more negotiating power or to choose to back out of the agreement if major issues are discovered.
Who Requests a Home Inspection?
Home inspections are often requested by the buyer to ensure they can have confidence in buying the property and don't get any surprises after moving into the building. The lender may also request that a home inspection is performed when approving a loan application to ensure that the borrower makes a wise investment.
Who Pays for a Home Inspection?
The buyer is typically responsible for performing the home inspection when making an offer on a house to ensure that they still want to move forward with purchasing the property. Sellers will also be responsible for paying for the inspection if they want to know what repairs are needed before listing the property. In many cases, the buyer and seller will both pay to have their own inspection performed to ensure they can trust the professional that evaluates the physical condition of the building.
What Value Does it Bring?
A home inspection report is considered to be extremely valuable for both the buyer and seller. The inspection significantly influences the home value. If there's mold discovered in the walls or the foundation requires repairs then it can determine if the buyer decides to move forward with the purchase. In some cases, it can be a deal-breaker and will help to protect the buyer from investing in a property that requires significant work. In others, it will enhance their final negotiating position. If the seller still wants to own the home, they can resubmit their offer and ask for a better deal because the house needs thousands of extra dollars to get in good shape. For sellers, the inspection can also offer assistance when deciding how much they want to list the home for on the real estate market.
Understanding what is included in a home inspection and why it's necessary can allow you to decide if you want to invest in one when selling or buying a home. Although the inspection may cost hundreds of dollars to perform, it can offer peace of mind and will avoid any surprises during the transaction.