Sold Properties
Evaluate Your Home
Seller Resources
How to Stay in Contract
Home Inspection
How to Win a Bidding War
Basic Selling Questions
Home Inspection - Merely Leverage?

If you intend to put your house on the market, a home inspection could identify items that would be called out on a buyer's inspection. This becomes a disclosure item. Buyers can evaluate this report before submitting an offer. Buyers may choose to submit offers without inspection contingencies. Buyer assumes more risk and the seller receives a "cleaner" offer.

Historically, if a buyer is unaware of a defect prior to making an offer, the natural tendency is to negotiate the price once the defect becomes known after their home inspection. With prior knowledge from the seller's home inspection report, the defect instead is taken into consideration before the offer is made and there is less leverage for re-negotiations.

The seller's strongest position is at the time the buyer first presents an offer to purchase. If negotiation starts subsequent to the buyer's home inspection, the seller is mentally set for a sale, but perhaps more inclined to give concessions to avoid the deal falling apart. With prior knowledge a seller can either:

a) offer the house "as-is"
b) repair the defect using their contractor of choice
c) downgrade (e.g. remove a rotted deck or underground storage tank)

Above all, the seller's inspection report gives a fixed point of reference for everyone involved to work from before the sales agreement is signed.

How do I find a good home inspector?

Not all inspection companies are alike, and selecting the wrong company could cost you thousands of dollars in repair and replacement costs. Consider the following when shopping for home inspection companies.

  • Experience: How much experience do the inspectors have and how long have they have been in the business? The best home inspectors have been in business for years and have seen thousands of homes.
  • Home Inspection Training: Have the inspectors gone through any extensive home inspection training? In many states inspectors can simply call themselves home inspectors without any training or licensing.
  • Association Membership: Is the inspector a member of a professional home inspection organization? Companies that are affiliated with professional organizations are serious about what they do, and know about all the new developments in their fields. Some well-known trade associations are: American Society of Home Inspectors (ASHI) and National Association of Home Inspectors (NAHI). Inspectors in your area can be located through these associations.
  • Liability Insurance: Does the inspector carry Professional Liability Insurance (Errors and Omissions Insurance)? If you ever need to collect on a legal judgment, an inspector without insurance may not be able to pay your claim.
The seller's strongest position
   is at the time the buyer
   first presents an offer to
   purchase. If negotiation starts
   subsequent to the buyer's home
   inspection, the seller is mentally
   set for a sale, but perhaps more
   inclined to give concessions to
   avoid the deal falling apart.