The cost of a failed home inspection can vary widely depending on the specific circumstances. To mitigate any problems, contact Tray Raymond to maximize your return.
Here are some potential costs involved:
1. Negotiation Delays or Failed Sale
- Cost to Buyer: If the issues identified in the home inspection are significant enough (e.g., foundation problems, roof damage, or electrical issues), the buyer may decide to walk away from the deal. This can result in the loss of inspection fees (typically $300-$500) and any other non-refundable deposits (such as earnest money).
- Cost to Seller: If the inspection reveals major issues, the seller may have to reduce the price or pay for repairs to keep the sale moving forward. Sellers may also face the inconvenience and potential cost of re-listing the property.
2. Repair Costs
- Cost to Seller: A failed inspection may prompt the buyer to request significant repairs before proceeding with the sale. Depending on the issues identified, this can lead to substantial costs:
- Roof repairs: $5,000 to $10,000+
- Foundation issues: $3,000 to $30,000+
- Plumbing or electrical problems: $500 to $5,000+
- The seller might need to cover these expenses or negotiate a lower selling price.
3. Re-inspection Fees
- If repairs are made following a failed inspection, the buyer or seller may need to pay for a re-inspection to confirm that the issues have been resolved. Re-inspection fees typically range from $100 to $300.
4. Time and Opportunity Costs
- Time Delays: The failed inspection may delay the sale process, meaning both parties may face additional mortgage payments, maintenance costs, and other financial consequences.
- Market Impact: A failed inspection could lead to reduced buyer interest, potentially requiring the property to be relisted at a lower price to attract offers.
5. Buyer's Loss of Earnest Money
- If the buyer walks away due to a failed inspection and their earnest money was contingent upon inspection, they might lose that deposit, typically ranging from $500 to $5,000, depending on the terms of the agreement.
The cost of a failed home inspection is not just the inspection fee itself. It can include repair costs, lost deposits, re-inspection fees, and other financial consequences that can affect both the buyer and seller.
To make sure your sale moves forward take the time and affordable cost with Scottsdale Desert Inspections to review your property.
