Inspections are an important part of the buying process and allow you to fully understand any issues or challenges with the property before closing the transaction. If the seller has not provided an inspection ahead of time, you may decide to write your offer with an inspection contingency. This is one of the more common contingencies that buyers use.
A contingency means that you will only go through with the purchase if certain conditions are met.
Home inspections should be only done by a certified home inspector, and they are usually paid for by the buyer. Often, a seller will have inspections completed prior to placing their home on the market to remove the “contingency” from the buyers bid. Ultimately, it is the buyer’s responsibility to assess the condition of the property.
Pest Inspections are also done by a licensed inspector who will look for wood-destroying organisms, including termites and fungi (“dry rot”). Pest reports classify conditions as Section 1 or Section 2 items.
Section 1: Conditions demonstrating active infections or conditions damaging the property. Active termites, beetles, or wood rot are examples of Section 1 items.
Section 2: Conditions not currently causing damage but likely too, if left unattended. A typical Section 2 item is a plumbing leak where moisture has not yet caused fungus decay.
As with the home inspection, the buyer pays for the pest inspection, however the inspector is responsible to deliver an unbiased report, regardless of whether they favor the buyer or the seller.
If damage is found in the property, such as a crack in the foundation or a roof that needs to be replaced, you may be able to negotiate with the seller on remediation options.