Home Inspections: Your Roadmap to a Smooth Sale
July 24, 2024
A Wisconsin Home Seller’s Guide
Congratulations! You’ve decided to sell your home. Now, let’s talk about a crucial step in the process – the home inspection. While it might seem like another hurdle, understanding a home inspection’s ins and outs can make your selling journey smoother and more successful.
1. The Purpose of a Home Inspection
Think of a home inspection as a check-up for your house. It’s an objective assessment of your property’s condition conducted by a qualified professional. The goal is to identify any potential issues that might affect the value or safety of the home. This information empowers both you and the buyer to make informed decisions.
2. Typical Categories of Things Evaluated
Home inspectors cover a lot of ground. Here’s a glimpse of what they typically look at:
- Structural components: Foundation, roof, walls, floors, etc.
- Exterior: Siding, landscaping, driveway, decks.
- Interior: Walls, ceilings, floors, stairs, windows, doors.
- Systems: Electrical, plumbing, heating, cooling, ventilation.
- Appliances: Dishwasher, stove, refrigerator, etc. (if included in the sale)
- Additional concerns: Pest infestations, radon levels, mold, etc.
3. What to Expect in the Inspection Report
The inspector’s findings will be compiled in a detailed report. This typically includes:
- Description of issues: A clear explanation of any defects or concerns found.
- Severity levels: Most reports categorize issues as major, minor, or informational.
- Photos: Visual documentation of problems for reference.
- Recommendations: Suggestions for further evaluation or repairs.
4. Common Negotiation Points
Some of the most common issues that arise in negotiations after a home inspection include:
- Major repairs: Roof leaks, foundation problems, HVAC malfunctions.
- Safety hazards: Electrical issues, plumbing leaks, mold.
- Costly fixes: Outdated systems, water damage, pest infestations.
- Surprises: Issues that were not disclosed by the seller on the Real Estate Condition Report.
The Importance of Transparency: Being upfront and honest about known issues on the Real Estate Condition Report can make your life easier. When buyers make an offer, they do so with full knowledge of the property’s condition, making it less likely that these issues will become major sticking points during negotiations.
5. Right to Cure
In Wisconsin, sellers have a “Right to Cure.” This means they have the opportunity to address any issues identified in the inspection report before the sale is finalized. However, this right is not absolute and is subject to the terms of the purchase contract.
6. The Negotiation and Remediation Process
a. Establish Estimates: Get quotes from reputable contractors to determine the cost of repairs or replacements.
b. Negotiate: Discuss with the buyer who will pay for repairs. Options include:
- Seller pays: You cover the cost of repairs before closing.
- Buyer pays: The buyer accepts the property as-is and handles repairs themselves.
- Credit to the buyer: You provide a credit to the buyer at closing to cover repair costs.
- Price reduction: the purchase price is adjusted
- Combination: You might split the cost or address some issues while the buyer handles others.
c. Determine Timing:
- Before Closing: Major repairs are often done before closing to ensure the property is in good condition for the buyer.
- After Closing: Minor repairs or cosmetic fixes can sometimes be negotiated to be done after closing.
Remember, a home inspection isn’t meant to scare you away from selling. It’s a valuable tool that promotes transparency and helps both parties reach a fair and informed agreement. Understanding the process and your options, you’ll be well-prepared to navigate negotiations and ensure a successful sale.
