What Is a Home Inspection Worth?

from Michael Ireland Real Estate Podcast · host Michael Ireland

There are a few different ways to determine the value that a home inspection will bring to your specific property. I hear a lot of questions about inspectors. Who are they and what do they do? How do you know you’re getting good value for what you’re spending?  About two decades ago, home inspectors were virtually nonexistent. Today is a far different story. About 90% of buyers hire a home inspector. So how can a buyer know that they’re getting a good value and a good inspector? Well first of all, inspectors go largely by reputation. Be sure to ask your agent to recommend one that they think will be best for you and your situation. Also remember that inspectors do not hold liability in the event they overlook something, which is something most buyers might not be aware of. Inspectors will, though, be able to bring information to the buyer which will play a key role in calculating the long-term costs associated with the home as well as any repairs that may be needed.  In many cases, the buyer and the agent will be using the inspector’s report to revisit negotiation terms with the seller. Sometimes this can result in some form of compensation. About 90% of buyers hire a home inspector. However, when it comes to attached homes like townhomes or apartments, the value of the inspector is inherently limited because they will only be able to focus their inspection on the interior. The exterior of the property is under the jurisdiction of the strata. In this case, the information provided by the strata managers will often be more valuable than the inspection report.  The services of an inspector can be valuable on the other side of the transaction, as well. Sellers may want to consider having an inspection done on their own property before listing so that they can take care of any issues before the buyer sees, and likely also inspects, the home. This way, the seller can present the inspection report, as well as any invoices proving repairs have been made, to the buyer.  This will give the buyer confidence, and could potentially lead to a quicker offer.  If you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

What this episode covers

There are a few different ways to determine the value that a home inspection will bring to your specific property. I hear a lot of questions about inspectors. Who are they and what do they do? How do you know you’re getting good value for what you’re spending? About two decades ago, home inspectors were virtually nonexistent. Today is a far different story. About 90% of buyers hire a home inspector. So how can a buyer know that they’re getting a good value and a good inspector? Well first of all, inspectors go largely by reputation. Be sure to ask your agent to recommend one that they think will be best for you and your situation. Also remember that inspectors do not hold liability in the event they overlook something, which is something most buyers might not be aware of. Inspectors will, though, be able to bring information to the buyer which will play a key role in calculating the long-term costs associated with the home as well as any repairs that may be needed. In many cases, the buyer and the agent will be using the inspector’s report to revisit negotiation terms with the seller. Sometimes this can result in some form of compensation. About 90% of buyers hire a home inspector. However, when it comes to attached homes like townhomes or apartments, the value of the inspector is inherently limited because they will only be able to focus their inspection on the interior. The exterior of the property is under the jurisdiction of the strata. In this case, the information provided by the strata managers will often be more valuable than the inspection report. The services of an inspector can be valuable on the other side of the transaction, as well. Sellers may want to consider having an inspection done on their own property before listing so that they can take care of any issues before the buyer sees, and likely also inspects, the home. This way, the seller can present the inspection report, as well as any invoices proving repairs have been made, to the buyer. This will give the buyer confidence, and could potentially lead to a quicker offer. If you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.