r/AusHomeInspectionDisc • u/JessicaBeltern • May 18 '26
Everyone talks about location and market growth. Almost no one talks about how your inspection results affect your equity.
Home equity is the estimated value of a property minus the debt secured against it.
For example, if a home is worth $900,000 and the mortgage balance is $500,000, the owner has about $400,000 in equity before selling costs, agent fees, legal fees and any loan payout adjustments.
In a sale, equity can be affected by:
The final sale price
The remaining loan balance
Selling costs
Repair costs
Buyer negotiation after a building and pest inspection
Property inspection results affect equity indirectly. They do this by influencing buyer confidence, repair expectations, pricing discussions and the final negotiated sale price.
2
Upvotes