Shopping for a home and want to save money? If so, here’s a tip for a new way to save money when buying a home.
Who wouldn't spend $300 to save more than $1600?
A national inspection corporation recently conducted a survey to determine the factors that are causing the steady growth in public demand for home inspections. The survey produced convincing evidence that home buyers who spend between $250 and $350 for a home inspection realize on average savings of $1573 or about four-to-six fold net return on their investment.
Savings to buyers came in the form of pre-purchase repairs or corrections of flaws or problems not disclosed prior to the inspection and/or by reduction in the purchase price of the home as a result of the inspection. Not all buyers reported savings as a result of the professional inspection. On the other hand, in 76 per cent of the transactions, the seller paid for the repair or corrections of flaws identified by the report. The survey was conducted among 200 home owners selected at random from 18,000 recent home inspections.
A total of 58.7 percent of the respondents declared the home inspection influenced their decision to buy, and 70 percent noted the inspection report made them feel more comfortable with their decision to buy.
Despite the substantial savings acquired by some of the respondents, they ranked "reduced asking price" and "compensation for repairs" as less important benefits of the inspection than "peace of mind" and "absence of surprises.
There is a growing trend for sellers to order an inspection at the time the listing is originated. Sellers are finding an inspection ordered at the time of listing can produce numerous advantages and at times substantial savings as well.
While the inspection does not relieve the seller of the responsibility for disclosing known defects, a listing inspection by an unbiased professional home inspector will help reduce the possibility of litigation from problems that may arise after the close of escrow.
The savings for a seller protected from litigation as the result of a home inspection report can be considerable. With a listing inspection, the seller has plenty of time to order repairs with the advantage of being able to shop for a low bidder to perform the work.
For both buyer and seller the inspection report becomes a convincing negotiation tool. For the buyer, the report provides documentation by a neutral professional of construction and mechanical concerns and what is needed to correct them. For the seller, the report provides evidence of the soundness of the house and helps the seller substantiate the value of the property.
TCO Inc. Home Inspections Licensed Michigan Contractor License # 2102156090 B.S. NMU - Industry & Technology
Owned by - Daniel J. Stafford Serving the Upper Peninsula of Michigan and Northern Wisconsin
Phone: 906.265.3628 Toll Free: 888.269.6166
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