There is no such thing as a "Failed" inspection on a house. Nor is there an inspection that is considered a "Pass". Inspections are done for buyers who want to know more information about the house they are thinking about purchasing. These are deemed "informational purposes only."
In most states, if a buyer doesn't like their inspection, there is usually a way to cancel the contract. But what does that mean? Does it mean the inspection failed? No, it means the inspection was thorough about the house and its present condition, in order to give the buyer information about what might need to be repaired. It means the buyer didn't like what they read.
If a report doesn't show many issues, does that mean it passed? No, it means the inspection was thorough about the house and its present condition.
Yes, I gave the same answer for both situations. There is no criteria about passing and failing a home inspection on a property for sale. An inspection is only about whether or not the buyer is willing to take on the potential challenges the house might have to offer. Many people look for houses in bad condition so they can fix it up themselves. They aren't looking for a "perfect" house. Plus, there is no such thing as a perfect house as they're all built by humans!
Houses aren't like school where you get a pass or fail grade on the inspection. All you get is information, and how you interpret that information will tell you if you want to buy the house or not.
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Donna Harris, REALTOR®
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*Inspections on a House for Sale are not about Pass & Fail* was first published on donnahomesblog.com.
Good point, Donna. An inspection could have a million notes and still be the right home for a buyer, or it could have one finding that's just too much. There is no pass or fail, just an informed buyer.
I wanna buy a house!!!
fall creek real estate
Exactly, John!
John, I never thought of a home inspection as a pass or fail thing, interesting concept!
Just yesterday a new agent taking a listing told me the home was under contract last year and failed an inspection. I said exactly what you did. There is no pass or fail, instead say the buyer and seller didn't resolve the inspection.
Donna - it really is up to us as agents to educate both our buyers and our sellers on the process as we move through the transaction and the inspection often requires the most education
And educating buyers that the age of the home will bring up a lot of today's codes in inspections, and reminding them that the home is built to X code, not today's code.
Donna Thank you! I am relatively new and am trying to absorb as much as possible about the process. I appreciated your insight.
Sometimes anything but thorough happens. A case of a very thick three ring binder with terms about what is a sill plate, a header, BX wiring cable. Like junior high building, contruction course manual. And then where's the beef, the actual eyeballing the sticks and bricks. One page check off and not much time put into the once over glance at the property. Consider the inspection to see if it should raise eyebrows. Be taken serious.
A buyer might "pass" on a house that's in poor condition. Most buyers have a long list of requirements. Location, style, size, condition are all factors most people look at. The appraisal and inspection are usually at the end of a long process and hold the most secrets. Like you mentioned some people want a long list of inspection items.
There's only a "pass and fail" in the buyers mind. Were there too many issues for them to consider taking on and the sellers not willing to budge? Fail.
In some cases it may be a fail. An FHA inspection has a different set of criteria, and some of those items MUST be fixed, as they become a condition of funding. While I agree, that the home inspection is for informational purposes, it can often be the beginning of a negotiation that ultimately stops a sale depending upon the flexibility of both the buyer and the seller.
This is a very sensible way of discussing the inspection with the buyers - before the inspection. Buyers should not go into it hoping to renogotiate.
Yes to this post and point...We have additional EYES on the prize and this invites more discussion, clarity and if handled correctly..a satisfying conclusion
I think this is something that most people don't understand. There is no right or wrong answer to what is acceptable, it depends on the situation. The home inspection is just an honest evaluation for that particular time.
Donna Harris - I love the simplicity of your answer about "no pass or fail". The inspection gives the buyer an opportunity to go back and renogitiate if there are items that are deal breakers for them if they are not fixed. Just had that happen.
With some people, no matter how much you prepare them for this process they still get a little nutty. I like your explanation.
Geoff, FHA is an Appraisal, not a home inspection. Completely different things. FHA criteria has lightened a lot over the years, and their main criteria is to have no safety hazards. No house should have a safety hazard!
In all my transactions this year the seller's have played ball on getting inspection items done thankfully. We haven't had to cancel over anything yet.
Inspections are so important - but it's not a pass or fail!
I always try and tell the buyer that the benefit of the inspection is they get to start out in home and know every single thing that needs attention right from the start. They need to know that this is a good thing and that at least there will not be any surprises later. I also tell them that all homes have some issues, even new construction.
This quote says it all
"There is no criteria about passing and failing a home inspection on a property for sale. An inspection is only about whether or not the buyer is willing to take on the potential challenges the house might have to offer."
Exactly...Someone's nightmare is someone else's "so what".
Nice way to remind people.
Here it is all about functionality. Lots of ways out of a contract for either party. If a buyer wants to buy and a seller wants to sell you work it out.
Donna Harris - this is a great point. Inspection is not a pass or fail test. (And now I'll include this in my presentation - thanks for new definition of Home Inspections.)
When we look at a home or a home inspection, my husband and I just want to make sure there's nothing we can't fix or live with. Some folks want a lifetime guarantee on everything in and around the home, and won't settle for less. It really is just for information purposes so buyers can apply their own standards of acceptable.