Many sellers might not realize that they have the option to get a pre-listing home inspection, and usually those who do know, tend to opt-out of getting one. Which is understandable, having a home inspection that they pay for themselves before ever putting their house on the market can seem like a tough decision to make! But it’s one that should not be avoided.
In general, the home buyer adds the completion of a successful home inspection as a contingency to an offer on a home. Once they are ready to buyers conduct the inspection, they have the power to negotiate with the seller regarding who pays for any necessary repairs, and they even have the power to walk away from the deal altogether. Leaving you out hundreds of thousands of dollars, or back to the drawing board.
When sellers have a pre-listing home inspection, they can get ahead of issues a buyer might find in the home and reduce the likelihood a deal will fall through. A pre-listing inspection serves many benefits not only for the seller, but also for their agent.
The Advantages of a Pre-Listing Home Inspection
- Allows the seller to make repairs before the home inspection. If a seller has a pre listing inspection, he or she will then be aware of issues present in the home and can make repairs to make it easier to sell. Most Realtors will explain that making repairs before listing a home can help it show better and get better offers.
If the seller chooses not to make the repairs, he or she can at least be aware of issues present in the home, which allows him or her to fully disclose this information to potential buyers. It also gives the seller more leverage during negotiations because he or she will not be unprepared. Sellers may be able to convince buyers to waive their home inspection contingency if the seller presents them with a copy of the pre-listing inspection.
- It ensures a smoother, more efficient transaction When issues are discovered during a pre-listing inspection, the seller can either have them fixed ahead of putting the home on the market or choose to disclose the issues to potential buyers. Either choice will make the home sell faster because it will prevent the buyer and seller from becoming entangled in long negotiations after the buyer has an inspection.
Because the issues have been disclosed ahead of time, the buyer will not be surprised by anything and will be less likely to walk away or demand a lower price for the home. Homes that provide buyers with the results of a pre-listing inspection give the buyer the opportunity to decide well in advance if he or she wants to purchase a home despite its issues.
- It helps the seller and his or her agent more accurately price the home Sellers who do not wish to fix the issues revealed during a pre-listing inspection can factor the repair costs into the asking price of the home and explain to buyers that while the home has certain issues, they will be getting it for a lower price as a result. Conversely, sellers who do decide to make repairs or who come up with a clean home inspection can ask buyers for more money.
- It saves the seller money When issues are discovered during a buyer-initiated home inspection, the buyer and seller will enter into negotiations to determine who will cover the costs of repairs. In general, buyers tend to significantly overestimate the costs of these repairs, and the seller loses far more money than he or she would have paid to have completed the repairs before listing the home.
- It makes the seller more trustworthy A pre-inspection can be seen as “the ultimate gesture in forthrightness on the part of the seller.” By disclosing any issues in advance, the buyers can feel confident they are making a deal with a trustworthy person who is not trying to hide anything. Thus, deciding if they want to buy the home based on the integrity and due diligence of the seller! It’s a win-win!