Whether it’s a buyer’s or seller’s market, a home inspection is a crucial step in the real estate process. However, each market type influences how buyers, sellers, and inspectors approach it.

Home Inspections in a Buyer’s Market

In a buyer’s market, inspections are highly prioritized and more likely to be included in the purchasing process for several reasons:

• Power of Negotiation: Since buyers have more options and less competition, they’re more likely to negotiate repairs or request credits based on the findings of the home inspection. Inspectors may be asked to provide detailed reports and estimates, as buyers often use these insights to reduce the purchase price or ask the seller to address certain issues.
• Thorough Inspections: Buyers in this market often take extra time to review inspection results carefully and may request specialized inspections if the general inspection indicates potential issues.
• Longer Inspection Periods: With less pressure to close quickly, buyers can opt for extended inspection windows, allowing ample time for any follow-up inspections or cost assessments.

For home inspectors, this translates to:

• More comprehensive inspections, as buyers want to know precisely what they’re purchasing.
• Increased follow-up questions from buyers, who may want clarification on certain defects or a more in-depth explanation of the home’s condition.

Home Inspections in a Seller’s Market

In a seller’s market, buyers are often competing against multiple offers, which affects how inspections are approached.

• Waiving Inspections: Some buyers may choose to waive the inspection contingency altogether, aiming to make their offers more appealing. However, waiving an inspection is a risky move, as it prevents the buyer from knowing the property’s condition before purchasing. Sellers might favor offers without inspection contingencies, as it reduces the chances of renegotiation or delays.
• Quicker Inspections: If buyers choose not to waive the inspection, they often request shorter inspection periods to remain competitive. This sometimes means they must make quick decisions based on inspection results, with less room to negotiate for repairs or adjustments.
• Focus on Major Defects: In competitive markets, buyers are less likely to request repairs for minor issues. Instead, they’ll focus on significant defects, as they often don’t want to risk jeopardizing the deal over small issues.

For home inspectors, this leads to:

• Expedited Inspection Reports: Buyers and agents may request reports on a tight timeline to meet market demands.
• Focus on Major Concerns: Inspectors may find that buyers prioritize understanding large-scale defects (e.g., foundation issues, roof damage) over minor, easily repairable items.