| The Best Time to Inspect Your
Home!
Home inspections conducted prior to a home being placed on
the market is one of the wisest moves a seller can make. The
initial response from sellers when approached with the idea of
an inspection done as the home is about to be put up for sale is
most always the same - "What?!"
Let's review a few of the most common concerns about
Pre-Listing Home Inspections.
1. "The buyer will not accept an inspection done for the
seller."
That is correct! The inspection done for the seller is not
intended to replace the inspection done for the buyer. The
purpose of the pre-listing inspection is to put the seller in
control!
Given that no good surprise can come to the seller during the
home inspection, regardless of when it is done or whom it is
done for, it makes perfect sense to get every strand of
information as soon as it can be gotten. Bad news doesn't get
better with time.
If there is some b111Cad news, or more correctly, some items
that needs attention or might have an impact on the home's
value, who better to receive that information than the seller?
And when is a better time to receive that information than
before the home is placed on the market?
The simple fact is this - a home inspection at the time of
listing will put the seller in the best possible position. With
the complete and clear view of the home's strengths and
weaknesses, the home can be marketed to the best benefit of the
seller.
2. "I don't want to pay for the inspection."
This is certainly understandable. The seller generally
perceives that the inspection is intended for the buyer, hence,
should be a buyer's responsibility. But to have the benefit of
the information it must be paid for. Never have we had a
complaint from a seller about the value of the inspection! In
every case at the conclusion of a pre-listing inspection, the
seller felt they had made a good choice in spending the money to
get the inspection done.
In most cases, the seller's feel good getting the peace of
mind of knowing that no major event or expense will be uncovered
by the buyer's inspector. And on the rare occasion when it is
discovered by the pre-listing inspector that the roof is
completely shot or there is some other big expense or danger,
the sellers, while not happy to have the problem, are glad to
have discovered it on their own terms. The small expense of the
inspection is always less then the cost and aggravation of a
hurried hunt to get something repaired or replaced after the
home is under contract.
Save the pain, spend the money. Get every home inspected
prior to putting it on the market!
3. "The home is selling 'as is'."
This may be the best reason of all to inspect at listing! If
the home is being sold "as is", reduce your risk and liability
as the seller by getting a pre-listing inspection. In order for
the home to sell quickly and at the highest price, disclose
every condition of the home. The inspection gives both the buyer
and the seller the comfort of knowing that the home "is as it
is". With a pre-listing inspection, there is a high likelihood
that the home is as represented.
Even in an "as is" contract, the buyer may still have their
own inspection performed. If these two inspections are similar
in content, it is rare the buyer will walk or counter offer.
That, in fact, is the goal of the "as is" sale.
Another concern of sellers is that they will have to repair
every item that is discovered to be discrepant on the inspection
report. This is simply not true. It would be true that every
discrepant item needs to be disclosed, and those disclosures may
impact value and hence asking price, but nothing need
necessarily be corrected.
Amazing as it may seem, homes inspected prior to going on the
market have two very significant attributes:
1. They sell faster than homes not inspected until the buyer
has made an offer.
2. They sell closer to the asking price than homes not
inspected until the buyer has made an offer.
Why the heck does that happen?
When the buyer makes an offer, there is an assumption made by
the buyer, reasonable or not, that there is nothing wrong with
the home! If there was something wrong with the home that the
seller knew about, but did not disclose, shame on them, it is
about to cost them money. Most often, though, the items that
come up on the inspection by the buyer were unknown to the
seller. Sur-prise, sur-prise, sur-prise! And we've already
established that surprise is not good in real estate. So how is
it that the inspection for the seller makes the buyer pay more
for the home and do it in less time?
Let us create an example of a 20-year-old home that has a
fair market value of $100,000, just to make the math easy. That
value assumes that nothing is wrong with the home. When the
buyer has the home inspected it is with the assumption that
anything discovered to be wrong will be corrected by the seller
or a price concession will be made.
Now, let's consider that the buyers inspection revealed the
need for a new roof, several plumbing leaks, and the need for
replacement of three exterior doors. When these discoveries are
made by the buyer's inspection, the clock is running and running
fast. These items need to be corre5A6cted before the sale can be
completed. This time crunch puts the seller at a disadvantage
when dealing with the contractors. When time is critical, you
have fewer choices and the costs go up. Additionally, the buyer
often wants to have input on who does what work.
This situation is always tense and expensive. It can be
avoided!
Let us now assume that the inspection result occurs, but it
is for the seller as the home goes onto the market. The seller
is now in control. Armed with a clear picture of what is wrong,
the seller can choose to shop calmly for the best value in
repair contractors, offer a credit at closing or adjust the
sales price to reflect the diminished value. They can even make
the necessary repairs, then increase the price of the home to
reflect the increased value!
No matter the choices made, the seller, on the seller's time
frame, makes them. This actually makes for a neater, simpler
buying decision for the buyer. The buyer knows better what
condition the home is in and knows what issues to base the
initial offer on. The buyer will still in most cases get the
home inspected, but this is a breeze. It is rare that any
additional items of significance arise.
The pre-listing inspection puts deal killing at the lowest
risk. Most often, it makes for an awesome deal-closing tool!
Copyright © Florida HomePro, Inc. and Wallace J. Conway. All
rights in all media reserved.
Wally Conway is President of Florida HomePro Inspections, and
is featured regularly on HGTV's "House Detective". As a speaker,
instructor, author, and host of The Happy Home Inspector radio
show every Saturday at 3 PM on WOKV 690, Wally blends the right
amount of up-to-date information with just the right amount of
humor, insight, motivation, and real-world application. Visit
http://www.wallyconway.com and
http://www.gohomepro.com for more information on his new
book, "Secrets of the Happy Home Inspector"!
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