A home inspection is one of the more important steps in the home buying process. When done to perfection, a home inspection allows the buyer to have a clear understanding of the property he or she is about to buy. It also provides the seller with the knowledge of which sections of the house need certain improvements.
Importance of a Pre-listing Home Inspection
Home inspections are undertaken on behalf of the buyer so that they (buyer) can know the true condition of the property. Below are the pros of having a pre-listing home inspection:
1. Reduce the stress of selling
Getting a pre-listing inspection can reduce stress surrounding a home sale. In case your home has hidden problems you’re unaware of, an inspection will alert you to such problems, and give you the opportunity to address them. This will allow you to work on your own schedule, as you won’t be in a rush to get it done.
2. Accurate Home Pricing
Setting the accurate price for your home can be tricky. It takes an experienced Real Estate agent to find the best price. Too high the buyers will stay away, too low, and you miss on potential profits. But even the best Realtor will struggle with pricing if the status of the home is uncertain. A pre-listing inspection will ensure you have all the facts, and this will make setting the price much easier.
3. You can make Repairs
It’s common practice for agents to tell sellers to make significant repairs before listing a home. The buyer’s inspection may uncover major defects, which the seller must repair to get the full price of the home. If as a seller you wait for the buyer’s inspection, you will have until closing the sale to get repairs done. Such thin timelines can be stressful as you’ll be in a rush to get everything fixed. A pre-listing inspection allows you to dictate your own schedule. There’s no rush to prop up your property, and you will be listing your home confident everything is in place.
4. Avoid the Need to Renegotiate
The buyer may cancel a well-considered offer if the buyer’s inspection finds fault with your home. It’s annoying if a deal you were relying on collapses. Salvaging such a deal can lead to renegotiating and you could find yourself holding the short end of the stick. A pre-listing inspection will ensure you avoid such situations.
5. Help Improve the Buyer’s Confidence
The chances of a buyer feeling confident of a purchase are higher if you share with them an inspection report. It’s normal for buyers to be skeptical about the condition of a home until the home inspection is completed. For most folks, buying a home is the largest investment decision one will ever make. If a buyer suspects the home has issues, the offer made could reflect such doubts. Doing an inspection before listing can help end doubts about the home.
6. Simplify Your Real Estate Agents Job
It’s common for real estate agents to sell homes without prior inspections. But knowing the actual status of the home makes the Realtor’s job much easier. The Realtor can price more accurately, negotiate with confidence, and attract buyers more easily, as the buyers have confidence in the inspection.
Cons for Having an Inspection
What could be the disadvantages of having a home inspection before the sale? Below are some of the main reasons:
1. The Cost
There are no free inspections. Getting a pre-listing inspection doesn’t mean you will not go through the buyer’s inspection. A home inspection can cost anywhere from $400 to $1,000 for general inspection, depending on your location.
2. Disclosure Laws
Some states expect you to disclose all the problems the inspection uncovers to the buyer. Such disclosures can put you at a disadvantage if your finances are insufficient to carry out repairs. The faults discovered during the pre-listing inspection could make the home sale more difficult. If you have the money, disclosure shouldn’t bother you. However, it’s the seller’s responsibility to be accurate and sincere to any questions from the buyer.
3. Expect Two Home Inspections
The buyer’s inspection shouldn’t worry you if a pre-listing inspection enabled you to carry out appropriate repairs before listing. Despite such efforts, you will still have to go through a buyer’s inspection regardless you got a pre-listing inspection or not.
Keep your Real Estate Agent Close
Once you hire a Real Estate agent, ensure you are reading from the same script throughout the whole process. Since a home inspection is one of the crucial stages of a successful sale, it’s important for the Realtor to be present during the home inspection. Despite having your own inspection, the buyer’s inspector could offer a differing thought or opinion.
There’s no law that compels a seller to get a pre-listing home inspection. But, the benefits of doing so far outweigh the risks. Majority of home sales are stressful and uncertain, thus you can lower the negative aspects of the process by collecting all the necessary information about your home before you put it on sale.