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Home Inspection: Buyer or Seller responsibility?

Home inspection is an important part of the buying and selling process of a property but who pays for the services and what happens once the inspection has been finalized.

Here are some common questions frequently asked by home buyers and sellers about the inspection process.

HOME INSPECTION: Buyer or seller responsibility ?

1 - Who Hires the inspection company?

The inspection company should be hired by the buyer. Usually, most agents can provide names of several companies.

2 - Who pays for the inspection, the buyer or the seller ?

The buyer is required to pay for his/her inspection. However, there are situations which the seller has done an inspection prior to listing their home for sale but it is up to seller to provide the the results of it.

This can also be used as a marketing technique by the buyer as it tells seller that the price of the home was determined based on the results of the inspection.

3 - In the case that repairs are needed, who is responsible for those repairs, the buyer or seller? Are repairs negotiable between seller and buyer?

When repairs are needed and requested by the buyer in order to move forward with sale, it is the seller’s obligation to pay for those items. However, repairs can be negotiated between both parties.

If a seller doesn't have the money to make the repairs, the buyer can agree to take care of these items in exchange for a renegotiation.

FHA/VA home inspection

When a property will be financed by FHA or VA loan, then it will have to be appraised and inspected by a VA or HUD-approved home appraiser.

The current market value of the property will be determined by the appraiser who will also inspect it to make sure it meets VA and HUD minimum property standards.

FHA appraisal guidelines are as follows:

“Required repairs are limited to those necessary to preserve the continued marketability of the property and to protect the health and safety of the occupants.”

While the VA appraisal has two main purposes:

Determine the homes fair market value and to ensure the property meets the VA Minimum Property Requirements that revolve around safety, sanitation and structural integrity.

Frequently asked questions about FHA and VA loans

If issues are repaired/corrected, can loan still be obtained?

Absolutely, If they are corrected before the final inspection the loan can still move forward.

Is there a fee for FHA and VA re-inspection fee after the repairs are done?

Yes, and they are generally paid by the buyer.

New Homes

Most new homes are under warranty, should a home inspection still be ordered?

Yes, and most home builders have a ten day period for home inspections to be completed.

If you have other questions related to Real Estate or the process of buying and selling a property, please join the private facebook group Real Estate Tips & Info


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