Who pays for a home inspection? How much does it cost?
Hey everyone, welcome back! I’m Lindsay, with the Wise Move AZ Team at RealtyONE Group. If you want to stay up to date on all things Anthem and Real Estate then you need to subscribe to our YouTube Channel. Pro Tip: You’re also going to want to hit that little bell icon so that you’re the first to know when our new videos are posted every single Thursday!
If you’re thinking about buying or selling a home you may have questions about the inspection process. And let’s be honest, at the end of the day, we all want to know how much it’s all going to cost and who’s going to pay, right? As your Anthem, Arizona REALTOR®, I have been involved with a lot of home inspections, so I will happily give you an idea of what’s typical here in Arizona!
Also, at the end of this post I’ll give you access to our cheat sheet: 10 Questions to Ask your Inspector Before Hiring Them, so stick around!
In Arizona, it is most common for the Buyer to pay out of pocket for home inspections. What do I mean by that? I mean that the buyer will typically pay for any desired inspections regardless of whether the sale closes or not. Buyers will typically pay the Inspection Companies directly, and this amount will not show up on any closing statements.
A seller may pay for inspections in one of two unique circumstances:
- They decide that they want to have the home inspected prior to listing. If the Seller has concerns about potential issues with the home that could become a problem once they are under contract with a Buyer, then they may opt to have the home inspected themselves and take care of any major repairs. If you are buying a home that falls into this category, I would still strongly recommend that you get your own inspections done.
- A Seller may pay for the inspections if it is negotiated into the contract. In our industry we often say ‘anything for the right price’. What I mean by this is that it would be possible to negotiate having the Seller pay for an inspection in the purchase contract. If you are a buyer, it is important to know that having a condition like this in your offer can definitely make your offer less appealing, and may not get you the response you want. Personally, I have never seen this done, but anything is negotiable.
Remember, in the vast majority of cases the buyer will pay for their own inspections of the property.
So, let’s assume you’re a looking to buy a house!
How much money do you need to set aside for inspections?
There are SO MANY different kinds of inspections you can have done on a property. In fact, I made a video on all the different kinds of inspections you can have done, here, so feel free to check that out if you’re interested. If you had EVERY kind of inspection done you would be looking at thousands of dollars. But in reality there are a select few inspections that we strongly encourage our buyers to get, if applicable:
- A Professional Home Inspection: I talk in way more detail about the home inspection in this video. This inspection will typically cost you $300.
- An HVAC Inspection: This is heating, ventilation, and cooling, and this will run you about $125. You may be able to skip this inspection if the AC is newer or if the Seller can provide detailed service records.
- A Termite Inspection: We typically have this done at the same time as the home inspection and it costs about $55. This one is really important in Arizona.
- A Reverse Osmosis System Inspection: If the home has an RO system, you may want to get it inspected. This could cost you about $125.
- A Water Softener Inspection: Much like the RO System inspection, if the home has a water softener system you may want to get it inspected. Set aside another $125 for this one too, just to be safe. If the home doesn’t have a water softener you may want to price one out during your inspection period. The water is Arizona is really hard.
- A Pool Inspection: If the home you are looking to buy has a pool, you may want to have it inspected. Set aside $150 for this one.
Remember the types of inspections you have done depend entirely on the home you are looking to buy. You will be able to decide on each inspection on a case by case basis. Your professional home inspection will also give you an idea of what other professionals you need to hire.
So there you have it, if you were to get all of these inspections done, it would cost you, the buyer, about $880. I always encourage buyers to round up and ensure that they have an even $1,000 readily available to spend on inspections. If we end up spending less, then you will be pleasantly surprised and can put that money into the perfect piece of art for your new living room, or something fun, like that!
If this feels a bit pricey, know that I hear you, but I still genuinely believe in the value of these inspections. These inspections can save you thousands of dollars in repairs down the road. When inspectors note issues with the home, you, with the help of your REALTOR® can ask the Seller to correct these problems, or if the problems are way more than you are willing to take on, you are not obligated to proceed with the contract. PHEWF! Think about it this way, whether the inspectors discover major problems that cause you to walk away from a home, or the home is absolutely perfect, the money was well spent and gave you the peace of mind to proceed in the best possible way!
Last but not least, if you’re wondering how to pick the right inspector for the job, then you may want to snag your copy of our cheat sheet: 10 Questions to Ask an Inspector Before Hiring Them!
I hope this video helped you to become a more savvy, well-informed buyer.
See YOU, next Thursday!