Real Estate Inspections in 2021
Published on March 9, 2021
In March of last year, the Global Pandemic shook the US economy putting the housing market on hold for several months. It was predicted that the market was heading towards a significant decline, however; residential real estate has been resilient. Millennials have entered the market with a vengeance and are considered to be the fastest-growing segment of home buyers.
In 2020, a total of 5.64 million homes were sold, making the rate of existing home sales the highest in 14 years. Not only are homes selling at a record breaking pace, they are selling at prices as much as 8.4% higher than the previous year. Home sales are particularly strong in the higher price points.
- Homes priced at $100,000 are down 15% annually
- Homes priced at $500,000-$750,000 were up 65% annually
- Homes priced at $1,000,000+ are up 94% annually
The Global Pandemic has influenced the desire to invest in larger homes due to the stay-at-home order. Inventory is scarce and competition amongst home buyers is fierce in 2021. Although the pressure to move quickly is high, it is imperative that buyers know exactly what their true costs are. Skipping out on inspections can dramatically increase the price of the property to the buyer.
What this means for buyers…
You’ve come to an agreement and a seller has accepted your offer. A contract is prepared and will likely have an inspection contingency. These contingencies will usually follow with the phrase “time is of the essence” , a legal term which poses a strict deadline. DO NOT tread lightly. It is very important to be prompt in meeting contingency deadlines in your contract, or you will be bound to purchase a house with problems you did not anticipate. Those unanticipated repair costs could dramatically impact the desirability of your purchase. Sellers interests and buyers interests are different. A seller’s inspection may not address all of the issues that you as a buyer are interested in. Problems that exist will be the buyers alone after closing, meaning you have a vested interest in knowing everything you can about the property before purchasing. This is something your real estate agent will help you with. Your agent will likely recommend typical types of inspections, but It will be your responsibility to choose and pay for an inspector. Once you are informed of the cost of repairs, you can make a “Repair Request” to the seller.
Did you know that septic system inspections are one one the most crucial and are not required to be inspected by a seller? Be sure to have your septic inspection done correctly by a professional with the knowledge to detect any issues and repair them correctly.
Contact Us today to schedule an inspection
What this means for sellers…
You’ve found a buyer and have accepted their offer. You may or may not have had inspections performed. Although it is not required for a seller to have a septic inspection done, it is advisable considering it could be one of the most expensive repairs. While preparing your contract, you can set inspection time frames, and also set repair limitations. Limitations will save you time and money. By having a thorough septic inspection done, you are informed of the cost of any repairs or defects. Let’s say your inspector informs you that you need to replace your septic system at a whopping price of $6,000. With this information, you are able to set a limitation “Repair Limit” at a lower number, leaving you wiggle room to negotiate the “Repair Request” made by your buyer. This sum will be used as a credit towards repairs.
It is important to have trusted professionals perform inspections on your septic system. Call Us today at 804.232.6774 or visit us online.