Sioux Falls Real Estate

What is a Property Inspection?
A property inspection is a professional, objective, visual evaluation of the current condition of the property and its major systems, and does not include cosmetic improvements. It is important to understand that a property inspection is not necessarily a guarantee of any kind, nor a municipal code inspection. Property inspection reports may also indicate areas of preventative maintenance for the buyer’s information. These maintenance items are not typically a reason to renegotiate contract terms.

Types of Property Inspections

Structural
Hazardous conditions
Mechanical
Pest infestation and/or damage
Electrical
Environmental hazards, such as radon gas or lead

There Is No Perfect House
Buyers and sellers involved in the transaction should be aware that existing homes are less than perfect. The inspector may report that some items are defective or not working properly. These may or may not be major concerns. In most instances where there is a major concern, the buyer and seller may negotiate the cost of the correction. Where there are items that are not a major concern, most buyers will very likely take care of the correction. Talk to your Realtor about what to expect.

Seller’s Responsibility

Seller’s Property Condition Disclosure
The seller must furnish a signed, detailed disclosure statement regarding the current condition and past history of the property in accordance with the laws established by the state of South Dakota.

Utilities
In order for an inspection to be done, sellers are to have the utilities (i.e. gas, electricity, water) on at least 24 hours before the house and systems are inspected.

Accessibility
Access to interior foundation walls, furnace, water heater, electrical panel, attic, crawl space, and garage walls all need to be made ready to allow for a thorough inspection.

Seller’s Prelisting Inspection
It is recommended that the seller have a home inspected prior to putting the home on the market. This will help identify typical deficiencies which could appear on a buyer’s inspection report. Correction of these problems may increase the home’s appeal and stability, and could help identify unknown problems. Payment of this inspection is the responsibility of the seller and should be paid at the time of inspection.

Buyer’s Responsibility

When to Inspect?
Buyer inspections should be done as soon as possible, but no later than the date stipulated in the contract. Limits of the inspection are detailed in the inspection contract or disclaimer.

Who Chooses the Inspector?
It is the buyer’s responsibility to choose and coordinate with the selling agent for the inspection appointments, however, your Realtor will be able to assist you with this process.

Who Should Attend the Inspection?
It is important, but not mandatory, that the buyers attend at least a portion of the inspection. The Realtor may also be present. The seller may be present. Length of time varies with the type of inspection.

Cost and Payment of Buyer Inspections
The price of inspections varies according to the type of inspection and size of property. Payment is the responsibility of the buyer and should generally be made no later than completion of the inspection.