When you begin the process of selling your home, you think about many things: what repairs you may need to make, how to stage your home most effectively, what the photos will look like, and more. One of the easiest places to begin with all the planning and preparation is with a home inspection. While it is not required, having a home inspection before selling is a worthwhile investment that can end up making you more money in the long run on your sale.
What is a home inspection?
Home inspections are not required in California
There is no “pass” or “fail” to a home inspection. It is simply a service provided to give homeowners or potential buyers insight into the state of the home and property.
The difference between a home inspection and an appraisal
A home appraisal, in contrast, reports on the value of the property and takes into consideration not only the state of the home but also the land on which the home sits, the current real estate market in which the home resides, the school district, and other considerations that affect real estate pricing.
Furthermore, while a home inspection is not required, an appraisal is almost always required by the bank lending the money to the buyer for a mortgage. The bank will want to be sure the home is worth at least what is being borrowed, and quite often more. In some cases, an appraisal may be avoided, such as if the transaction is made in cash or the loan amount is on the smaller end and is part of a certain type of refinance or renewal. However, you can typically expect an appraisal to be a fairly automatic requirement by the bank, while a home inspection is optional and must be initiated by the buyer or seller of the home.
The buyer usually has the home inspection done
If the report comes back with minor repairs, the buyer will usually ask the seller to make those repairs before moving forward with closing. The seller can agree to make the repairs, come in with a counteroffer (like lowering the price of the home instead of making the repairs), or simply refuse the request altogether. At that point, the buyer may choose to walk away from the sale and look for a different property that more closely aligns with their needs.
Luxury homes can be the trickiest when it comes to home inspections because you never know which upgrades have been done that might be outside of code. Also, after several years in a home, issues are bound to come up that the seller may not have been aware of.
Benefits of conducting a home inspection before selling
When you hire a trusted home inspector in advance of selling, you go into the real estate transaction with your eyes wide open, and you cannot be caught off guard. In today’s real estate market, it pays to be informed and aware every step of the way.
When deciding which home inspector to choose, it’s essential to hire someone who is a true expert with knowledge and experience that goes beyond just credentials. That way, you can trust that your inspector was detailed and thorough in evaluating your property for any issues.
Work with an agent you can count on
If you are interested in buying or selling a home in or around beautiful Placer County, contact Brenda Williams today to get started toward all your goals.
*Header photo courtesy of Shutterstock