Home inspections can save homebuyers big; here’s just how muchAly J. Yale The Mortgage Reports Contributor
Saving by inspectingHome inspections can offer serious value. In fact, according to a new analysis, they save buyers an average of $14,000 per home purchase.
Verify your new rate (May 12th, 2020)Serious savingsThough most buyers pay between $200 and $500 for their home inspection, a new analysis from Porch.com shows the fee more than pays for itself in the long run. In fact, a home inspection saves the average buyer around $14,000 on their home purchase.
According to the report, the average list price before an inspection is $226,600. Post-inspection, the average closing price is just $212,400.
As the report explains, “Home inspections can be extremely prudent investments, saving homebuyers from unforeseen fiscal challenges. Citing necessary repairs, agents can knock thousands off the price their clients might otherwise have paid.”
About 36 percent of buyers said their inspector even provide estimated repair costs for each issue found.
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Insights into inspectionsFortunately, it seems most buyers have recognized the power of inspections. Eight in 10 recent homebuyers used an inspector in their purchase, paying about $377 on average.
The majority of these buyers used the inspector recommended by their real estate agent. Others used recommendations from friends or family members, or the seller made the inspection decision. Most chose the first inspector they considered.
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In 86 percent of cases, the inspector found an item that needed repairs. Nearly 20 percent of inspections revealed a roof issue and 18 percent showed an electrical problem. Issues were also often cited with windows, gutters, plumbing and fencing.
Problems with heaters and roofs helped negotiations the most. When inspectors noted an issue with the heating system, buyers were able to negotiate the price $1,250 lower on average. With roof issues, it was $1,000 lower.