Do Home Inspections Really Affect Property Value?
Buying a home is the ultimate American dream. Some studies even indicate that 8 out of 10 millennials have a yearning to own a home someday. 36% of homebuyers are millennials – the biggest market share of any demographic.
Buying a home is no simple feat. It is arguably the largest purchase the average American will make in their lifetime. Because of this, buyers usually do a lot of due diligence before signing on the dotted lines.
Buyers aren’t quick to buy the first beautiful house they encounter. They want to buy a property that is in the proper condition. In most cases, Sterling Property Solutions says, they are looking for a move-in ready home that’s ready for occupation.
And that’s where home inspections come in.
What exactly is a Home Inspection?
A home inspection is a limited, non-intrusive investigation of a home’s condition. Its purpose is to give the buyer the information needed to make an informed decision before buying a home. At its most basic, a home inspection includes an examination of the following elements.
- Insulation and ventilation
- Heating and air conditioning systems
- Electrical systems
- Plumbing systems
- Roofing systems
- Structural integrity
A home inspection is carried by a qualified professional. Different states have different interpretations of who qualifies as a home inspector. But generally speaking, a home inspector is a professional that has undergone extensive training and is certified.
A home inspection is often done during a real estate transaction. The buyer is the one that usually requests it. The following are the benefits it has to buyers.
- Buyers feel confident about the purchase.
- Helps buyers plan.
- Can help negotiate the price of the home if defects are found.
- Inspections can pay for themselves in savings.
Do Home Inspections Have an Impact on the Value of a Property?
Yes, in case you are wondering. As a seller, the following are three ways in which you can counter that.
1. Handle repairs beforehand
When selling your home, first impressions matter. If you want to sell your home fast and for a good price, then the house needs to be at its absolute best. A house that looks attractive and charming in addition to being structurally sound will certainly tilt the odds in your favor.
That’ why savvy sellers usually have a pre-inspection done on their home before listing it. This way, you’ll be able to identify any potential issues and fix them before the buyer’s inspection.
Common issues that can have an impact on your home’s value include water damage, roof damage, electrical problems, and plumbing problems. Their repairs aren’t only costly, but they can also shave a good amount off of your sale price.
As already aforementioned, many buyers are in the hunt for move-in ready homes. The last thing they need is a structurally unsound home. So, by handling any problems beforehand, you’ll have a higher chance of selling it fast.
While you don’t have to fix everything, trying to tackle some can prove helpful in your efforts to sell the home. So, patch cracks and holes in the ceilings and walls. Fix broken appliances and HVAC systems. Repair faucets that are leaking. Replace broken window glass. Repair the roof and so on.
Doing so can help make potential buyers think that the home is loved and usually regularly maintained. You’ll be able, as a result, to sell it quickly and for a good amount.
2. Make the buying process smoother and quicker.
Once the inspection is carried out, both you and the buyer will have to wait about 2 days to get the report. And since no home is perfect, chances are that the report will mention a few problems.
Will that be a deal-breaker? Not necessarily! By and large, it depends on the extent of the damage. Now, the buyer will be confronted with three options. One, to ask you to make the repairs. Two, to negotiate for a lower sale price. Or three, to simply back out of the transaction altogether.
As a good practice, always disclose problems to potential buyers well in advance. This helps combat suspicion and reduce the buyer’s need for a price concession. What’s more, a potential buyer will know what exactly they are getting into.
3. Always have a pre-inspection done.
Many sellers tend to focus on things like staging their home, decluttering, and cleaning and forget to go beyond the surface. To improve your odds of selling your home, you need to look at the home with the eyes of a buyer.
Having a pre-inspection done will help in this regard. It cannot only help make it attractive to wannabe buyers, but it can also help attract a better price.
So, yes, home inspections can affect a home’s value. Having a pre-screening inspection is critical to selling your home fast and for top dollar. Just remember to hire a qualified inspector for the job.