Why should a seller do a PRE-Inspection on their own home?
Most people know the process of buying a home involves a home inspection prior to closing. Typically in California this is done AFTER we have an accepted offer by the buyer and seller and it is typically done at the buyer’s expense.
I explain to my clients that we have two rounds of negotiations in a sale. First, the purchase price and contingencies – things like the purchase price, closing costs, warranties, occupancy, etc., and the second round, we have the inspection negotiations!
Let’s Consider a different approach…
What if a SELLER did inspections on their home PRIOR to even listing the home for sale!
“But Scott, that is going to cost me a few hundred dollars and then show all the problems in my home to the buyer! Why would I do that?”
Let me give you a ‘real-world’ example:
During a recent listing consultation, I went over a PRE-Inspection with my sellers and opened their minds to this option. My soon to be sellers took me up on this and had an inspection done prior to putting a sign in the yard. Here is how it went:
Cost to sellers: $350. The result: We found close to $1,200. in repairs on close to a dozen items. (We received bids to complete everything so the buyers would know potential costs involved.) The sellers contracted a handyman to repair the most important items (Plumbing, electrical as well as ‘Health & Safety’ items.)
The Home Inspection Report was delivered in a 3-ring binder, which I put in the kitchen for the buyers to review. I also included the receipts for repairs we made along with the bids for additional items not repaired.
A week into the listing going live we received an offer. After reviewing our inspection and repairs, the buyers chose not to preform their own inspections, as they were happy with the current report. Te sale closed 28 days later and everyone was happy!
So what just happened?
1.) The sellers eliminated the anxiety of “What will the buyers find during inspections and how much will it cost me?”
2.) The buyer knew before writing a contract more about the home and also eliminated the “What will we find wrong during the inspections?”
3.) The buyers saved $350.-$500. out of their own pocket, not having to re-do inspections, so they may have picked our listing over others for the savings alone.
4.) The sellers provided upfront information about their home, creating a feeling of “Everything is on the table” and I am not hiding anything from you.
5.) The sellers and buyers closed faster by eliminating the inspection period and potential delays involved with that process.
6.) As a sellers agent I can properly advise my clients better with the information ahead of time, and formulate a strategy with a much better vision of the end result.
If more sellers would consider this step as part of their listing process, it would be a wise strategy. Getting all the cards on the table for one of the biggest financial sales of a lifetime makes good sense. Remember, a good real estate consultant will help you think bigger and explore thoughts that may be contrary to to what you have heard in the past. Looking out for our clients with the mindset of getting them the most satisfaction from their sale is of key importance.