Many communities require that an inspector evaluate a house before it can be sold. This requirement

Question

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Requiring an inspection before the sale of a house reduces the problem of asymmetric information. Without an inspection, the buyer may not have all the necessary information about the condition of the house, which could lead to an unfair price for one party. However, the requirement may also create an economic burden on the buyer and seller and potentially reduce market efficiency. It does not create an externality.

Many Communities Require That an Inspector Evaluate a House Before