Who pays for Home Inspections and Repairs: The Buyer or Seller?

Who foots the bill for home inspections and repairs in a real estate deal? Find out below! Whether you’re buying or selling, understanding the ins and outs can make all the difference.

Home Inspections: Buyer’s Responsibility

Typically, home inspections are arranged and paid for by the buyer. A thorough inspection assesses the property’s structural integrity, systems, and overall condition. It’s an essential step for buyers to uncover any potential issues or safety concerns before finalising the purchase.

Repairs: Negotiable

Once the inspection report is in hand, the buyer may request repairs or credits for issues discovered during the inspection. Whether the seller is responsible for making repairs or offering credits is negotiable and often depends on various factors:

1. Local Real Estate Customs: In some regions, it’s customary for sellers to address certain repairs before closing, while in others, buyers may take on the responsibility.
2. Contractual Agreements: The terms outlined in the purchase agreement dictate who is responsible for repairs. It’s essential to review these terms carefully and negotiate any necessary changes.
3. Market Conditions: In a seller’s market, sellers may be less inclined to make repairs, while in a buyer’s market, they may be more willing to negotiate.

Finding Common Ground

In many cases, buyers and sellers can find common ground by working together to address repair issues. Options include:

1. Seller Completes Repairs: The seller agrees to complete necessary repairs before closing, ensuring the property meets agreed-upon standards.
2. Seller Offers Credits: Instead of making repairs, the seller provides credits or funds at closing to cover the cost of repairs, allowing the buyer to address issues after taking possession of the property.
3. Price Adjustment: Buyers may negotiate a lower purchase price to offset the cost of repairs they’ll need to undertake after closing.