Welcome to our second weekly post of real estate questions submitted by blog and social media followers, clients and others. Have a question? Use the form below to submit your question confidentially. We’ll be posting a new real estate question (and answer) each Friday.
This week’s question:
“We’re looking at a house and the seller is providing a few inspection reports. We want additional inspections done for the roof and termites. Who pays for these additional inspections, the seller or the buyer?” S.U., Danville, CA
Great question! There are two different answers, either could be correct based upon the specific situation.
1) Normally, sellers pay for inspections they order, buyers pay for inspections they order.
Answer 1) is fine if both parties consider their position neutral (market conditions give neither buyer nor seller an advantage). But I like to negotiate to get the best possible deal, so answer 2) is my preferred response.
2) All terms of a real estate sale are negotiable, therefore who pays for inspections is subject to negotiation. For example, a buyer might make an offer that is subject to inspection of the property with the stipulation that the cost of additional inspections identified in the offer will be credited against the purchase price. As long as the seller agrees, the seller could end up paying for all inspections.
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NOTE: Real estate questions are answered within the scope of real estate broker expertise and are not intended to offer legal or tax advice. Contact a qualified legal or tax professional for questions regarding those specialties.
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