For Buyers and Sellers – Critical Information
and for Sellers, this will help your home sell faster and for more money.
If you’re like most home sellers, you probably lived in your home for more than 5 years. The longer you live in your home, the more likely it is that there are many minor defects and maintenance items you have overlooked, as well as some major defects that you just did not know about. Virtually every home sale is contingent upon the results of a Buyer ordered home inspection. The home inspector lists all defects, questionable areas, upgrades suggestions, maintenance, repair or replacements they feel are warranted. Now the Buyer is in control of the sale.
When the problems are found by the Home Inspector the buyer may:
1. Terminate the contract
2. Ask for inflated amounts to have the problem fixed
3. Be so alarmed by the defect found, they will terminate the contract without giving you the chance to fix it.
Very often a sale is lost, and the Seller’s Home is back on the market.
The problems are still there and will found again by the next buyer and inspector.
Doing a Pre-Listing Seller’s Inspection makes selling a home easier, and the buyer is so much more comfortable making an offer to buy when they know there are no hidden defects, and they are not going to find a bunch of things they are going to have to fix after they move in.
Why doesn’t every seller do a Pre-Listing Inspection?
Sellers worry that significant damage or defects are found. They will be disappointed, and know that there is money they will have to spend for things they must fix. This is a small price to pay and is a far better situation than thinking they have a contract of sale, and then losing the deal after the Buyer’s Inspection. The Seller now has to start all over trying find a new buyer.
Even in this situation things are not that bad. What will happen is the Sellers Agent can discuss the problems with seller, and together form a plan of action. The seller can determine whether to adjust the price to account for the Buyer correcting the defects, the seller can list the home “AS IS” with full disclosure of inspection report, or the seller can make some or all the repairs that need correcting to expedite the sale. When the Seller corrects the problem areas and calls for a re-inspection of the home. The home inspector should return a clean report that he can then show the Buyer.
A Buyer is more likely to purchase this home when he sees the Seller has had the home Pre-inspected. The Buyer then sees the report, and he knows that the seller is proud of his home and wants the Buyer to get the most value for his money. If the Seller had done all the repairs and has a clean re-inspection report, the Buyer knows entering into a contract to purchase this home with the confidence that this home versus others is very likely to be defect free. Even if the Seller has not remedied all the defects, the Buyer and Seller can negotiate based with accurate knowledge about what repairs need to be done. The Buyer can choose to trust the seller’s home inspection or can bring in another inspector to verify the findings, but the Seller can be confident the deal should not fall apart.
Below we have listed some of the specific benefits for the buyer and seller.
Fourteen real advantages to the seller:
1) The seller can choose a “qualified” inspector rather than the buyer’s choice of inspector.
2) It might alert the seller of items personal concern, such as radon gas or termites.
3) The seller can be there with the inspector, not done during a buyer’s inspection.
4) The seller can have inspector correct any misstatements in the report beforehand.
5) The seller can set a higher asking price if problems don’t exist or corrected.
6) Find items which can make the home show better.
7) Gives the seller time to make repairs and shop for competitive contractors.
8) The seller can attach repair estimates or paid invoices to the inspection report.
9) Removes the possibility of over-inflated buyer procured estimates.
10) The report provides a third-party, unbiased opinion to offer to potential buyers.
11) A clean home inspection report is a marketing tool.
12) A seller inspection is the ultimate gesture of honesty on the part of the seller.
13) The report might relieve a prospective buyer’s suspicions of problems.
14) The deal is less likely to fall apart because of unexpected inspection problems.
Eight Important Advantages to the home buyer:
1) The inspection is done already.
2) The inspection is paid for by the seller.
3) The report provides a third-party view of the condition of the home prior to making an offer.
4) A seller inspection eliminates surprise defects.
5) Problems are corrected or at least acknowledged prior to making an offer on the home.
6) A seller inspection reduces the need for later re-negotiations.
7) The report might assist in acquiring financing.
8) A seller inspection allows the buyer waiving inspections to sweeten their offer.