A home inspection is a worthy investment for buyers and sellers alike
Buyers are typically expected to pay for their own home inspection.
Sellers pay for their own pre-listing home inspection.
Detailed home inspections make for faster, simpler real estate deals.
As a buyer, an inspection helps you determine potential issues in a home so you can make a more informed purchase. As a seller, an inspection lets you set a fair price for your listing and avoid unexpected hassles with repairs later on. But who pays for the home inspection—buyer or seller? While buyers are normally expected to pay, sellers can also choose to take on the home inspection cost. In this guide, we’ll break down when each party might pay for an inspection.
"Homebuyers should order an inspection as soon as they are under contract to purchase the home. It is also good practice for sellers to complete a home inspection prior to listing their home in order to avoid any surprise repairs that may come up later."
— Robert Washington, Founder at Savvy Buyers Realty
The cost of a home inspection may be covered by the buyer or seller, depending on the situation. If the buyer wants to get the home inspected before they commit to purchasing it, it’s up to them to pay the inspection fee and include an inspection contingency. By doing so they’ll recieve a complete, unbiased view of the property and learn about any serious issues that may not be obvious at first glance.
Since sellers are often motivated to sell, there may be a conflict of interest if they hire and pay for an inspector on behalf of the buyer. However, if a seller wants a pre-listing home inspection before they put their property on the market, it’s their responsibility to pay for it. A pre-listing inspection can inform them of any urgent repairs and potentially allow them to increase the asking price and ensure a smoother transaction down the road.
In most cases, the main home inspection is performed after a buyer places an accepted offer on a home. The inspection often acts as a final condition for the sale. What a home inspection does is provide a detailed look at a home to ensure the buyer knows as much about the property as possible.
It’s normally up to the buyer to schedule and pay for this home inspection report. Technically, it’s not required for a buyer to get a home inspection—they may decide to buy a property sight unseen. However, the majority of sales will have an inspection, leaving it up to buyers to cover the cost.
The average cost of a home inspection is around $300 to $500, but location, square footage, and special services can change this figure. Buyers normally pay for the inspection shortly after the time of inspection and before closing on the home.
Who pays for the home inspection when selling a home? Unlike buyer inspections, which are usually performed after an accepted offer, sellers might choose to get a pre-listing home inspection before their home is up for sale.
Unless you opt to get additional specialty services done with your inspection (more on those in a moment), the costs for a seller’s pre-listing home inspection should be similar to a buyer’s inspection—about $300 to $500, depending on the size and location of the home.
So far, we’ve been looking at standard inspections, which examine the whole home in general. But what about specialty inspections which might be needed after the main inspection? Examples of different types of home inspections include:
Radon gas inspection
Pest inspection
Septic system inspection
Mold inspection
Lead paint inspection
Pool inspection
The need for these specialty inspections is usually revealed by the general home inspection. In most cases, these additional inspections are also covered by the buyer. Fortunately, it’s easy to prepare for an inspection and increase the chances of a comprehensive, objective, and useful report.
Buyers do have the option of negotiating to have the seller cover the general and specialty home inspection costs before closing the deal. Whether or not this will work in their favor depends greatly on the specific listing, the individuals involved, and the state of the market.
Whether you’re a buyer or a seller, home inspections are a helpful part of the process. A great local home inspector will ensure nothing is missed in the report, giving you all the information you need to make your next home transaction smooth.
The situation will determine if you get a home inspection before or after making an offer. Only the person who pays for the home inspection is required to receive the full inspection report. While sellers will get some sense of the issues discovered when the buyer sends a list of requested repairs, they won’t have the full picture without getting a pre-listing inspection of their own.
As with the rest of the process, determining who pays for home repairs after the inspection is also up for negotiation. In most cases, the seller will either make the repairs themselves as a condition of the deal going through or lower their price to make up for the buyer paying for the repairs. Of course, it’s entirely possible for the seller to refuse to make any repairs or price alterations if the listing is in high demand.
The cost of a home inspection depends on a number of factors, such as the size and condition of the home, its location, and the inspector’s experience. Most inspections, however, will run between $187 and $510.
In most cases, inspection costs are not included in closing costs. The inspection is usually a standalone expense the buyer or seller covers by choice. Closing costs are normally required and designed to cover other costs, such as appraisal fees, title search fees, and attorney fees.
The person who requests the inspection should select the inspector themselves. This way, there are no conflicts of interest, and the inspection report offers an objective, unbiased look into the condition of the property.
