Potential sellers focus more on whether or not their homes are ready for market as the home-buying season approaches. Many opt to have a home inspection done in order to answer this question. A home inspector is required as part of the home-buying process. Although it is typically the responsibility of the buyer, sellers can get their inspection before they list their property for sale. This is the essence and purpose of a pre-sale inspection.
According to the National Association of Realtors, up to 25% of buyers will make an offer without having to go through a home inspection. Most often, these buyers are desperate to get their offer accepted. While in some instances, the buyer could be comfortable with the property, especially if the seller previously paid for a house inspection before listing the house for sale, it is still a risk to escape this process. A presale inspection ranges between $175 and $600 depending on whether it is brief or in-depth. Thus, it is a worthy investment given that you will be paying hundreds to thousands of dollars for your new home.
Pre-Sale Home Inspection Versus Pre-Purchase Inspection? Who Benefits?
While there are some honest people in the real estate industry, some scavengers are out there waiting to take advantage of ill-informed buyers. Thus, as a prudent buyer, you should be on the lookout and avoid sealing a deal without prior research. Therefore, understanding the difference between a pre-sale and pre-purchase inspection is vital, given the misinformation out there.
A pre-sale inspection is the owner’s responsibility and is usually in conjunction with the agency that will manage the property sale. This inspection is done to make sure that the agent is aware of any potential issues that might arise during negotiations. The agent can then correct any defects before the property is put up for sale. This inspection does not protect the home, but serves to sell it. This report is not intended to be relied upon by a prudent buyer. This inspection is more beneficial to the realty agency. Putting down a deposit based upon this report will be dangerous, regardless of whether you are buying a home or an investment property.
On the other hand, a pre-purchase inspection is in the buyer’s interest. As an interested buyer, you will undertake this responsibility, to get an inspection report that is detailed with photographic series outlining everything about the property. This document will prove that you can negotiate or renegotiate a price to reflect the true property value. You will pay for the pre-purchase inspection, but this payment is worthy, given the return on investment. In the worst cases, you can use this report to terminate a contract and receive your full refund, should you find extreme deterioration or issues you are unwilling to live with. Then, the difference between the presale and pre-purchase inspection boils down to who the report is meant to benefit.
Why you shouldn’t skip a pre-sale home inspection
A pre-sale inspection is a good idea to do before you list your house for sale. This will allow you to assess the condition of the home and any potential problems it might present to potential buyers. You can fix the problems in your house by revealing them to the inspector. You will know what problems you need to tell the buyer when the house is sold.
A presale home inspection is also useful when developing your sale terms. You can immediately address any issues found during the inspection, rather than waiting for the buyer’s request. This gives you the freedom to resolve the problem at your own pace instead of waiting for the buyer who may use it for leverage.
After the inspection, you will receive a report disclosing the issues in the house and recommendations on how to fix them. You can decide to fix the issues or charge the buyer to do so, in which case, the house will sell at a lower price. The information from the inspection can be used to price the house and ensure a smooth transaction.
The pre-sale home inspection is also a marketing tool. The buyer is informed about the condition of the house and will be fully aware of any future surprises. An inspector could praise your house’s perfect sewer condition or the long life expectancy of the home. You can add this to your listing, making it more attractive than the rest in the market. This report will also convince potential buyers that you are serious about selling and make them recommend you to other sellers.
If you want to build confidence and trust between you and buyers, you need to be transparent. This is because a home is the most expensive item buyers will spend their money on. Buyers will need to determine if they are able to afford the purchase price and make future repairs. A buyer doubting the real state of a home will place a lower offer on the house. A pre-sale inspection can help you deal with these doubts and ensure that the buyer is confident in making an offer.
Pre-sale home inspections can also be a great way to speed up the selling process. Buyers today want to know that you have finished all of the steps, and they are ready to make an offer. Buyers don’t want to see any problems in the house. You can verify that the house is in good condition and is worthy of inspection. You will feel more confident letting the buyer know that there are no problems with the house if you address them.
Presales home inspections are a great way to simplify your job as an agent. Agents handle the pricing and negotiations on behalf of the owner. A home inspection before you sell will help you save a lot of time and hassle. It will make it easier for them to find buyers and will also make the negotiation process much more straightforward.
Some buyers may insist that you have their pre-sale inspection report. Your listing agent should attend the inspection in order to fully understand the report and make sure there are no exaggerations. Buyers can be unreliable and use a home inspection as a way to initiate a renegotiation. The majority of cases will result in renegotiations on non-issues, such as a roof that has lasted five years and the buyer claims needs to be replaced.
Pre-Sale Home Inspection Shortcomings
Disclosure issues are the main problem when it comes to pre-sale home inspections. This is given that in some states, sellers should disclose the known defects in their homes. In such cases, you will likely be disadvantaged. This is why it is important to first find out about the disclosure laws in your area. Then, before listing the house for purchase, you can make any necessary repairs.