When buying or selling a home, the home inspection process plays a pivotal role in determining the condition of the property. One of the most common questions that come up during this phase is: who pays for the home inspection? Understanding this can clear up confusion and help both buyers and sellers navigate the home-buying process more smoothly. In this Redfin article, we’ll break down who pays for the home inspection and answer other common home inspection questions.
What is a home inspection?
A home inspection is a thorough evaluation of a property’s condition. A standard home inspection covers the major systems and components of the house, including the structure, plumbing, electrical, heating and cooling systems, roof, and foundation. This type of inspection helps identify any immediate issues or needed repairs.
In addition to the standard inspection, buyers may opt for specialized inspections for more specific concerns, especially if the standard inspection reveals potential problems. These can include:
- Pest inspection: To check for signs of termites, rodents, or other pests that may damage the property.
- Mold inspection: To detect any hidden mold or moisture issues that could affect health or structural integrity.
- Radon inspection: To test for radon gas, which can be a health hazard in certain areas.
- Sewer inspection: To examine the condition of the sewer line and detect any potential blockages or damage.
Who pays for the home inspection?
The short answer is that the buyer typically pays for the home inspection. This is the most common arrangement in most real estate transactions. Since the home inspection is primarily for the buyer’s benefit, ensuring the property is in good condition before finalizing the sale, the buyer usually covers the cost.
The price for a home inspection varies, generally ranging from $300 to $500, depending on the property’s size and location (for example, inspecting a house in Seattle, WA may cost more than a house in Katy, TX). While the buyer is usually responsible, there are some exceptions, especially if the seller is motivated or the buyer is in a highly competitive market.
When do sellers pay for the home inspection?
While it’s not the norm, there are situations where the seller pays for the home inspection. This typically happens when:
- In a buyer’s market: Sellers may be more willing to cover the cost of the home inspection or offer concessions to attract buyers and close the deal.
- A pre-listing inspection is conducted: Some sellers opt for a pre-listing home inspection to get ahead of any issues that might arise during the buyer’s inspection. In this case, the seller covers the cost upfront to make the home more appealing to buyers and avoid negotiation delays later on.
- Part of negotiation: In some cases, the seller may agree to cover the inspection costs as part of the overall deal, especially if they’re eager to close quickly.
Is a home inspection required when buying a home?
No, a home inspection is not required when buying a home, but it’s highly recommended. In most cases, the decision to get an inspection is up to the buyer, as it is not legally mandated in most states. However, skipping the inspection can be risky.
Choosing to skip the home inspection may save you a few hundred dollars initially, but it can lead to much larger costs down the road. Without a home inspection, you’re accepting the property “as is,” which could include hidden issues like outdated wiring, plumbing leaks, or even foundation problems. These are costly to fix and may not be immediately apparent.
How much does a home inspection cost?
The cost of a home inspection can vary depending on several factors, but typically ranges from $300-$500, although it’s oftentimes more than this. A few factors that can affect how much a home inspection costs include:
- Location
- Inspection type
- Age of the home
- Inspector’s experience
Can inspection fees be negotiated?
In some circumstances, the buyer and seller might negotiate the inspection fee. Buyers may request that the seller pays for the inspection if the buyer is covering other costs or if they’ve agreed to a higher purchase price.
Should you get a home inspection?
Even though the buyer typically pays for the home inspection, it’s often worth it to ensure that you’re making a sound investment. If problems are found, the buyer can negotiate repairs, request a price reduction, or even walk away from the deal. For example, a buyer who skips the inspection to make their offer more competitive may later discover costly issues like a leaking roof or faulty wiring. By including an inspection contingency, the buyer can either negotiate for repairs or exit the deal without financial loss, avoiding unexpected expenses down the road.
If the seller had a pre-listing inspection, the buyer could use that as a reference, but having their own inspection and inspection contingency still provides an added layer of protection.
What happens if repairs are needed after a home inspection?
If a home inspection uncovers issues, the next steps depend on the severity of the repairs needed and the terms of your contract. There are a few options:
1. Negotiate with the seller
If the inspection reveals significant problems, the buyer can negotiate with the seller to address the issues. This could involve requesting that the seller make the necessary repairs before closing, or offering a price reduction to account for the repair costs.
2. Ask for a credit
In some cases, instead of asking the seller to fix the problems, buyers may request a credit at closing to cover the cost of repairs. This allows the buyer to handle the repairs after moving in, but still at a reduced overall price.
3. Walk away from the deal
If the inspection reveals major problems that the buyer is not willing to take on, and no agreement can be made, the buyer can exercise their inspection contingency and walk away from the deal without losing their earnest money deposit. This is one of the key reasons why having an inspection contingency is crucial – it’s a safety net that can prevent you from being stuck with a property that needs costly repairs.