Can a home inspection save you $7 million? At IM Home Inspections, we recently inspected a multi-million dollar estate in Bel Air. After the transaction closed, I noticed that the final sale price was $7 million less than the original listed price. This was interesting because the year before, we had inspected another multi-million dollar estate in Bel Air that also closed at $7 million less than the price listed at the time.
Did the Home Inspection Cause the Price Reduction?
Now, I am not saying we found $7 million dollars worth of defects in the property. In fact, there are many other things that can contribute to home selling for less than the list price.
This includes:
- The home did appraise for the list price
- No one else was willing to pay more
- Agent negotiating skills
- Other inspector findings, including geological or pest.
- The offer price from the buyer was low from the start.
Despite this, the home inspections did reveal numerous issues that needed to be addressed. So, it’s clear the home inspection findings contributed to the price reduction.
But My Home Doesn’t Even Cost $7 Million
Even if the home you are buying is only a fraction of $7 million, chances are a home inspection can often pay for itself, many times over. Quite simply, no home is perfect, and there will always be something a home inspector finds. If the issues are significant enough, a home buyer can often use the home inspection report to negotiate a lower price. There are two exceptions to this: A home was are pre-discounted due to known issues, and homes with mutliple-offers where the seller has options. Even then, how much you can or can not save depends on how well your real estate can negotiate with the other side, among other factors. You should refer to our previous article Does The Seller Have To Pay For Repairs here.
In short, a home inspection often pays for itself. And even if it doesn’t, the knowledge of understanding what you are buying is worth more than the price of a high quality home inspection.
Book your home inspection by calling 818-298-3405 or schedule online here.