Most of the time, the home inspection process works like this: The buyer’s agent recommends an inspector, the buyers call the inspector and make an appointment and the inspection is completed. BUT…there is usually an inspection contingency clause attached to the sale and in a situation where the sellers are unprepared, this is the juncture where the sale can fall apart. According to upnest.com, “it's important for both buyers and sellers to understand what fixes are mandatory after a home inspection so they can come to a mutually beneficial agreement. About 17% of contingent purchase contracts fall through at this stage because a resolution can’t be reached.” This is the reason that many of the listing agents that I work with not only encourage their sellers to purchase a pre-sale inspection but often buy one for their listing themselves as part of their services.
Why would you do that?
It’s a small price to pay. The typical inspection is between 300-500 dollars and will give you a detailed report of exactly what needs to be fixed or replaced in your home. When you put it up for sale, there are no surprises. It allows to you fix what you need to and take care of any major issues before listing your home or to disclose those issues in the listing and sell your home AS-IS. A comprehensive home inspection covers the entire property. The foundation, all the points of entry, the HVAC, the major systems in the house and the condition of the structure. Additionally, you get expert advice on which items to actually get fixed. For instance, I inspected a property where the owner was about the replace the roof and not touch the electrical panel. After my inspection, they completely changed direction and decided to replace the electrical panel and leave a perfectly good roof alone. This decision saved them THOUSANDS of dollars and allowed them to spend that money on their new home.
It helps to price your house correctly the first time and that means less stress for you. Anyone who has put a house on the market knows you just want the house sold as quickly as possible and the best way to do that is to price it right. When your home has already been inspected, you know exactly what condition it is in and what the buyer’s inspector will find when they go through. Again, no surprises.
You can offer your inspection to the buyers as they bid on the house to increase their confidence in your home. It builds a sense of trust between the parties involved and the buyers often have an emotional response to getting this information upfront. Wouldn't you feel better knowing that the house you were putting an offer on was taken care of and the major repairs were already done? You would probably feel more comfortable with an offer closer to the asking price.
The pre-listing inspection really helps your realtor do their job during negotiations. For example, when the buyer’s inspector goes through a house,I have had them explain their findings to their buyers either incorrectly or in a way that panics them. Having the pre-listing inspection often avoids seller concessions during the negotiations, making your realtor’s job a lot easier and helping you get more money for your home.
It can speed up the closing. Sometimes with a pre-listing inspection, the buyers will waive their own inspection. Although this is not something I recommend. But, by disclosing everything and doing the repairs before listing the home, you do streamline the entire process. If the repairs need to be completed during the inspection period or credits need to be negotiated into the deal, no one saves money. A quick close is almost always financially advantageous to all parties.
As always, feel free to reach out!
Sean
Sean Finney
Pivotal Home Inspection
Florida Licensed Home Inspector
sean@pickpivotal.com