Who Pays for the Inspection and/or Appraisal?
Typically, in a standard pre-purchase inspection, the buyer pays. However, sometimes a seller will have a professional inspection to identify any problems with the home prior to putting it on the market.
An appraisal, on the other hand, is required in most types of mortgages and it is often a requirement from a lender. Typically, the buyer pays for the home appraisal at the time the original loan application is filed. However, keep in mind that a professional appraisal can help you determine an appropriate asking price for your home so it might be worth the $300-$500 to have a professional appraise it before putting it up for sale.
Repair Addendums
As part of the negotiation process, you and the buyer can agree on which repairs will be done by you and which they are willing to have repaired. As always, be sure to get any decisions in writing.
Most buyers will hire an inspector for a full house inspection. For the $250-$400 fee, they will get a detailed written report identifying any problem areas. Based on that report, the buyer will then submit an addendum to the seller asking the seller to agree to the specified repairs or make an adjustment in the price. If they cannot come to an agreement, the buyer has the right to terminate the contract and get their earnest money back. To tell you the truth, this is one of the best reasons to have a professional represent you – they do the negotiations for you.
Lead Based Paint Information
If your home was built prior to 1978, you must provide the potential buyer a specific pamphlet, 'Protect Your Family from Lead Based Paint in the Home' and you and the buyer must sign a specific addendum regarding any knowledge of presence of lead based paint. The buyer has the right to a ten day period during which to test for lead based paint presence at the buyer's expense. The buyer may also waive this righ t in writing. Click here to access the required documents regarding this situation.
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Nit-picky Inspectors
Not all inspectors are alike; some will find more problems than others. Just remember, you don’t have to make all the repairs they identify. That said, there may be certain repairs the lender requires for them to complete the loan. Unknown structural problems Under Oregon law, you are required to list any known problems that your house has; however, you will not necessarily be held liable if there are unknown structural problems that you had no way of knowing prior to putting your house on the market. To protect yourself, it is always a good idea to get your home professionally inspected so you know what you’re dealing with.
Unsatisfactory Inspections
What happens if you get an inspection and it says your roof needs replaced, your electrical system needs rewired and your plumbing needs redone? First thing, don’t panic! Just because the inspection report found these problems doesn’t mean you have to fix them. You could negotiate the repairs of these deficiencies with the potential buyer. If you find that lowering your asking price means keeping the buyers interested, it could mean you’ll save more money than if you had to make all the repairs yourself!
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