What to Expect During a Home Inspection for a Cash Sale

Home inspections play a vital role in the real estate transaction process by ensuring that buyers are informed of any potential issues with the property they are interested in. This step is especially critical for cash buyers, who often have different priorities compared to those securing traditional financing.

What is a Home Inspection?

A home inspection involves a detailed visual examination of a property's physical structure and mechanical systems, including elements like the roof, ceilings, walls, floors, windows, and doors. During this process, the inspector ensures that major appliances are working properly, assesses the heating and cooling systems, and checks the plumbing and electrical setups.  

In Oregon, a home inspection must be conducted by a home inspector or contractor who is licensed by the Oregon Construction Contractors Board (CCB). If the inspection involves two or more components, such as the roof, siding, or structural elements, the inspector must be certified and either hold a construction contractor's license or be employed by a licensed construction company.

Additionally, to prevent conflicts of interest, a home inspector is prohibited from performing any repair work on the inspected property for a period of twelve months following the inspection.

The Purpose of a Home Inspection in a Cash Sale

Home inspections are crucial for cash sales as they provide a comprehensive evaluation of a property's condition, helping buyers avoid unexpected expenses after the purchase. While mortgage-contingent sales often require inspections to secure financing, cash buyers have the flexibility to skip this step. However, doing so can lead to unforeseen repair costs that might have been negotiated into the sale price.

In Oregon, cash sales make up a significant portion of the real estate market. For example, in Q3 2021, cash sales represented 17.1% of all real estate transactions in Salem, Oregon. This highlights the importance of conducting thorough inspections, even in cash transactions, to ensure that buyers make informed decisions and secure a fair deal. 

When Does The Home Inspection Happen?

The home inspection should be scheduled as soon as the seller accepts your offer but before the purchase is finalized. This timing allows for any necessary follow-up inspections or negotiations with the seller. It's advisable to allocate at least seven to ten days within the home buying process to complete the inspection.

Key Components of a Home Inspection

When purchasing a home, whether through cash or mortgage financing, a thorough inspection is essential. Understanding the key components of a home inspection ensures you're making an informed decision and identifying any potential issues before finalizing your purchase.

1. Structural Elements

The structural integrity of a home is a critical component of the inspection. Inspectors assess the foundation, roof, and load-bearing walls to ensure they are in good condition and free from significant issues like cracks or sagging. A solid structure is vital to the long-term stability and safety of the home.

2. Exterior Evaluation

The exterior of the home, including siding, windows, doors, and the condition of the roof, is thoroughly evaluated. Inspectors check for any signs of damage, such as water intrusion, rot, or deteriorating materials. Proper drainage and the condition of the home's exterior can prevent costly repairs down the road.

3. Interior Inspection

Inside the home, inspectors examine essential systems such as plumbing, electrical, and HVAC. They also inspect ceilings, walls, and floors for any signs of damage, water leaks, or mold. Ensuring these systems and structures are in good working order is crucial for the home's habitability and safety.

4. Pest and Environmental Hazards

An important aspect of the inspection is identifying any pest infestations or environmental hazards, such as mold, asbestos, or radon. These issues can pose significant health risks and may require remediation. Addressing these hazards early can save you from more severe problems in the future.

5. Additional Safety Concerns

During a home inspection, inspectors check for various safety issues that could pose risks to the occupants. These include:

• Ensuring that railings on steps and stairways are secure and meet safety standards.

• Verifying that smoke alarms and carbon monoxide detectors are functioning properly.

• Identifying tripping hazards, such as loose steps or uneven pavement.

• Inspecting fireplaces, chimneys, and flues for any blockages or damage that could prevent proper ventilation.

• Checking that doors and windows operate correctly and can be used for emergency exits.

  
  

What Cash Buyers Prioritize in Home Inspections

Cash buyers often have different priorities during a home inspection compared to buyers relying on mortgage financing. Their main focus is typically on ensuring the property is a sound investment, with particular attention to any issues that could lead to immediate repair costs or impact the property's resale value. Cash buyers generally aim to streamline the buying process, often seeking inspections that are both thorough and efficient to close deals quickly.

1. Focus on Immediate Repairs Than Long-Term Investments

For cash buyers, the distinction between immediate repairs and long-term investments is crucial. They often prioritize identifying and addressing any significant issues that require immediate attention, such as structural damage, roof repairs, or plumbing problems. 

These buyers are less likely to be deterred by cosmetic issues or repairs that can be spread out over time, provided the property remains a good investment. They focus on understanding the extent of any necessary repairs to negotiate the sale price effectively or to plan for immediate renovations after purchase.

2. Speed and Efficiency in the Inspection Process

For cash buyers, speed and efficiency are critical components of the home inspection process. The ability to complete inspections quickly while still ensuring thoroughness allows them to move forward with the transaction faster, aligning with their goal of closing the deal promptly.

a. Expedited Scheduling:

• Cash buyers often seek inspectors who are available on short notice and can schedule inspections quickly after an offer is accepted. This urgency helps to maintain momentum in the transaction and reduces the risk of delays.

• Inspectors who can provide flexible scheduling and quick turnaround times for inspection reports are highly valued in cash transactions.

b. Efficient Inspection Process:

Cash buyers prioritize inspectors who can conduct a comprehensive assessment without unnecessary delays. Key features of an efficient inspection process include:

• Advanced Tools and Technology: The use of tools such as thermal imaging cameras or drones can expedite the inspection process while ensuring that no critical areas are overlooked.

• Concise Reporting: Cash buyers appreciate inspection reports that are clear, concise, and easy to understand, allowing them to quickly identify any issues and make informed decisions.

• The goal is to minimize the time between the inspection and the final closing, enabling a swift transition from offer to ownership

How Much Does a Home Inspection Cost?

In Oregon, the cost of a home inspection typically ranges from $425 to $550, depending on factors like the size of the home and its location. For instance, inspections in Portland might be on the lower end, around $250, while in other areas like Eugene, costs can go up to approximately $340.

Home inspections are generally paid out of pocket at the time of service, rather than at closing. This ensures that the inspector remains objective, as they are not financially incentivized to overlook potential issues that could jeopardize the sale. Investing in a thorough inspection upfront can potentially save you thousands of dollars in future repairs, with estimates suggesting savings of up to $14,000 by identifying and negotiating necessary repairs before finalizing the purchase.

Are Home Inspectors in Oregon Required to Have State Licensing?

Yes, home inspectors in Oregon must be state licensed, a requirement overseen by the Oregon Construction Contractors Board (CCB). To obtain a license, individuals must complete specific education and training and pass a written examination. This process ensures that inspectors have the necessary knowledge and skills to perform thorough and accurate home inspections.

Licensed home inspectors in Oregon are also required to complete 30 hours of Continuing Education credits every two years to maintain their license. This ongoing education helps inspectors stay updated on the latest industry standards and practices.

Organizations such as the International Association of Certified Home Inspectors (NACHI) and the American Society of Home Inspectors (ASHI) offer certification programs that provide comprehensive training. These programs cover critical topics such as building systems, safety protocols, legal requirements, and effective communication techniques. Upon completing these courses, inspectors receive certification, further ensuring their capability to deliver high-quality inspection services to clients.

How To Choose a Home Inspector?

Selecting a professional home inspector requires careful consideration to ensure you receive a thorough and accurate assessment of your property. Here are key qualifications to look for before scheduling an inspection:

1. Verify Licensing: 

Ensure that the home inspector is licensed and certified in your state. Request proof of their credentials and confirm their standing with the state's regulatory board.

2. Check Professional Certifications: 

Choose an inspector affiliated with a reputable professional organization, such as the American Society of Home Inspectors (ASHI) or the National Association of Certified Home Inspectors (NACHI). Membership in these organizations signifies adherence to rigorous standards and a commitment to ethical practices.

3. Assess Experience: 

Look for an inspector with experience relevant to the type of property you are purchasing. For instance, if you are buying a historic home, seek out an inspector with expertise in older properties. Similarly, for new constructions, an inspector experienced in evaluating modern homes would be beneficial.

4. Review Sample Reports:

Request a sample inspection report to understand the level of detail and clarity the inspector provides. A comprehensive, easy-to-understand report is crucial for identifying potential issues.

5. Consider Cost Wisely: 

While the cost of a home inspection in Oregon can vary, it's important not to base your decision solely on price. Prioritize finding an experienced, licensed, and certified inspector who can deliver a meticulous inspection over simply choosing the lowest bid.

Key Takeaway: What to Expect in a Cash Sale Home Inspection

The real estate market has shifted significantly, with cash buyers becoming a more prominent force in property transactions. The approach with cash buyers differs from traditional home purchases, featuring faster timelines and distinct expectations during inspections. For sellers and real estate professionals, understanding these differences is key to managing transactions effectively. 

At Mast Property Development, we understand the complexities of cash sales and are committed to facilitating smooth and efficient transactions. Our expertise ensures that both buyers and sellers derive maximum value, making the home-buying process seamless and satisfying.

Whether you're selling to a cash buyer or making a purchase, working with experienced professionals like those at Mast Property Development can be crucial to achieving a successful outcome.