Many sellers dread the home inspection…They spend sleepless nights wondering what their potential buyers’ inspector might uncover. Will it affect the profit on their home? Will it cancel the sale all together? You may be wondering about those same things. But first, let me explain a home inspection.
What is a Home Inspection?
A home inspection is a professional, complete visual examination of the structure and components of a home to find items that are not performing correctly or items that are unsafe. An inspection provides buyers with a clear understanding of the home they are intending to buy. A key to a good home inspection is using an inspector certified by The American Society of Home Inspectors (ASHI). AHSI certified inspectors produce a thorough and professional report which should include photos, comprehensive explanations and recommendations and be available online. Click on Inspection Report to see a sample report.
Reduce Stress by Eliminating the Unknown
Our sellers find comfort when they choose to perform the inspection before the listing so they can identify early on any potential issues that may affect the sale of their home and address them on their own terms. Remember there are two ways for a buyer to get out of a sales contract: The inspection and the appraisal or financing. Obviously, you will want to decrease the chances that your perspective buyer would cancel the contract on your home. Let’s review some reasons to perform a pre-listing inspection:
Save Money (and lots of it!)
Would you like to generate a result far closer to or over your initial asking price? When a buyer performs their own inspection, he or she may find undisclosed flaws. You stand to lose more money off your initial asking price than you may anticipate. We find that if a buyer’s inspection reveals a flaw that would cost $1,000 to repair, buyers will often demand $3,000-$5,000 off your contract price. Buyers see flaws found during their inspection to be far worse than if those flaws were disclosed upfront. It really comes down to a cost-benefit analysis: For a small price of a pre-listing inspection, a seller can save thousands more than the costly perception of an undisclosed flaw.
No Second Party Involvement
It’s possible that the inspection will reveal a problem with your home. By using a reputable and experienced inspector for your pre-inspection, you will be able to identify these problems without a buyer involved. It won’t affect your asking price or involve any negotiation between the two parties. You will have the opportunity to either disclose this problem upfront, or fix the problem before a buyer is involved. Tom and our team help you evaluate your options and find reputable contractors that are affordable and do a great job.
Pay Fair Market Value for Repairs
Having the pre-listing inspection completed gives you considerable leverage in the negotiating process. You will already have a full report on the condition of your property, allowing you to determine which issues are worth fixing on your own and which are better left to the future owners. Many changes that need to be made can be inexpensive, affording you the opportunity to address them before they can become more expensive to resolve in the sale process. According to Realtor.com - This allows extra time for you to seek out reputable repair professionals on your time frame and budget. Last minute repairs — such as those done during the selling process — typically cost much more than those done with more careful planning. You typically only have three days to deal with buyer inspection findings. What makes it worse, is those three days may include two weekend days, making it impossible to make an informed decision before the deadline.
Provide Buyer Confidence
By completing and providing those pre-inspection details you are also telling your potential buyers that you care about the condition of your home. This will give potential buyers confidence that you have shown the same attention to detail in every aspect of your home and show that you are honest and upfront about your home. When you share the findings of the report, you appear knowledgeable about the true condition of the house. According to Forbes - The transparency of the situation increases the buyer’s trust and credibility of the seller. From the eyes of a buyer touring a dozen homes, this really stands out to them and instills confidence in their decision making process.
Your Home Becomes More Marketable
A completed inspection summary report allows you to have full disclosure of a problem, but it also becomes a marketable part of your home listing. In this market, every little bit helps! Setting aside any problems the home inspection might find, think of all the good things that can come out of the inspection. Maybe you will be telling your potential buyers about the good roof, quality plumbing, lack of termite damage, or whatever the inspection finds. Buyers also look at it as you may be saving them money if they decide to accept the inspection report without paying for their own. Inspection reports give you control over issues that are found and make your home stand out compared to your competition.
Streamline the Process
Your pre-inspection will streamline the selling process and eliminate some potentially unexpected complications. You will have the opportunity to make full disclosure of any problems in your home or fix them in advance. Also, you’ll be providing the detailed inspection information to potential buyers before they enter into a contract. Most buyers will complete an inspection of their own. However, if you use a reputable inspector, you can feel quite confident that no major surprises are going to be revealed to hinder the sale of your home. In addition, inspectors at InspectPro, LLC will come back to the home and walk the buyers through the house for a small fee of $125/hr to the buyer. This keeps things moving and gives the buyers a satisfaction that they walked the house with an inspector. It’s a great solution for everyone!
Below is a list of categories an inspection will cover. The inspector will then outline what repairs should be addressed within these categories:
- Roof System
- Structural System
- Insulation and Ventilation
- Electrical System
- Heating and Cooling System(s)
- Plumbing System
- Kitchen Appliances, Built-In
- Fireplaces and Solid Fuel Burning Appliances
- General Comments
You May be Asking “Who Can I Trust?”
Based upon feedback from our clients and our personal experience, we at the Tom Gross Team suggest you consider Inspect Pro and Home Systems Data . Both companies have strong reputations in our market which adds credibility to their inspection reports and findings in the minds of buyers and their brokers.
If you have any questions please feel free to contact me at 303-591-2116 or email Tom@TomGrossTeam.com.