What is the Inspection Report?
When you put your property up for sale, the buyer will want to conduct an inspection of your property to understand the condition of what they are buying. Almost all offers to buy your property will include a contingency to conduct a physical inspection.
The buyer(s) will contract with a home inspector to look at and evaluate the condition of all the systems in your property. These include; air conditioning, heating, plumbing, and electrical. Aside from these key systems, the inspector will also inspect the condition and make up of floors, walls, and fixtures.
In most parts of Southern California, it is typical for the home buyers to contract and pay for the home inspection service.
Who can be present at the home inspection?
Whomever wants to be there. But it is a good idea that the buyer always be present at the inspection along with their real estate agent. This provides the buyer and their agent with an important tour of the property guided by the expertise of the inspector. Aside from inspecting and documenting the property’s condition, the inspector can also help answer questions that the buyer(s) and their agent may have, as they walk through the property.
When we are representing a seller as their listing agent, we always make it a point to be there during the inspection process to make sure we understand what is being reported and make sure we can clear up any misunderstandings if there are any.
What does the Report Not Include?
The inspection report only typically covers the property itself, though many inspectors will inspect and make note of common area conditions when inspecting condominium units. Systems that are beyond the condo unit, such as water supply or sewer lines at the street, roofing, or electrical power lines feeding the condo unit would not be covered in an inspection. If the buyer(s) has concerns about specific conditions, the buyer(s) can request additional inspections to be done by experts such as roofers, electricians, etc.
Additionally, any parts of the property not accessible or easily accessible may be omitted from the report. For example, plumbing that is not accessible.
What About Problems Found in the Home Inspection Report?
The findings of the inspection report provide disclosure of any issues that require repair or may require repair on the property. This naturally will affect the amount offered if the property is not in good condition.
Additionally, many inspectors will make note if a certain system or item appears to be working but may be nearing the end of its useful life.
The buyers may ask you to fix some or all of the issues identified in the report. You have the right to fix some, all, offer a partial or full credit, or do nothing at all with respect to the items identified in the report. These discussions will occur between you and your listing agent. Your listing agent will negotiate on your behalf to maximize your gain and mitigate losses in this area.
How to Minimize the Impact of the Inspection on the Seller
The best way to minimize the impact of the Inspection Report on asking price is to have your property in good condition before the inspection happens.
The physical home inspection and resulting report is important to ensure there are no surprises for the home buyer and that any material defects to the property which affect it’s value are know to all concerned.
If you have any questions about this topic, feel free to contact us.