deciding how many defects inspections you need

June 19, 2024
Effective Building
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Pre-purchase inspection reports are important documents that can potentially save home buyers from incurring long-term financial damages. Every pre-purchase inspection should have a corresponding report to show exactly what needs fixing and clearly state the property’s condition at the time before purchase.

Why Is a Pre-Purchase Inspection Report Important?

A pre-purchase inspection report is important for home buyers because it can serve as definitive proof that:

a pre-purchase inspection was conducted;
the pre-purchase inspection revealed the following issues; and
the inspector who prepared the report recommends the following fixes.

Without the report, everything above can be disputed by the home seller. Home buyers also need pre-purchase inspection reports to make the fixes recommended by the inspector legally enforceable (if such terms were included in the purchase agreement).

Other Uses of Pre-Purchase Inspection Reports for Home Buyers

Aside from providing documented evidence, a pre-purchase inspection report can be a determining factor in the home buyer’s decision to purchase the property. It’s possible for the home buyer to back out of the sale if severe damage has been outlined in the report.

Another use of pre-purchase inspection reports is to negotiate a lower asking price based on the inspector’s evaluation of the property. Even if the damage isn’t severe enough to retract their offer, home buyers should be aware that they can get a fairer price with the report.

Home buyers can also use the pre-purchase inspection report as a reference for what they’ll need to fix (if the conditions of their offer didn’t specify repairs) once they settle in.

Since these reports are prepared by licensed inspectors who don’t have a vested interest in the sale of the property, the information provided is likely to be accurate and descriptive.

How Can a Home Buyer Get a Pre-Purchase Inspection Report?

Typically, the inspector who conducted the pre-purchase inspection will automatically provide the home buyer who requested it with a pre-purchase inspection report. However, to be sure, home buyers can inform the inspector beforehand that they are expecting a complete report.

How to Use a Pre-Purchase Inspection Report

To maximise the use of a pre-purchase inspection report, home buyers should remember to include it (along with the pre-purchase inspection) as a condition for their offer to purchase the property. Some also specify that the offer is only valid if:

the issues found in the report are not major defects requiring expensive repairs;
the seller sufficiently addresses these issues if the problems are severe enough; or
the seller pays for the partial or full cost of repairs for issues found in the report.