As the home-buying season approaches, usually in spring, prospective sellers shift their focus on whether their homes are ready for the market. 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(NAR), 25% of buyers are happy to accept an offer without a home inspector. Most often, these buyers are desperate to get their offer accepted. Although the buyer may be more comfortable with the property than the seller, particularly if they have paid for a house inspection prior to listing the house for sale it is still possible for the seller to avoid 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 Inspection Versus Prepurchase 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. As a prudent buyer, it is important to be aware of the risks and not rush to close a deal. Therefore, understanding the difference between a pre-sale and pre-purchase inspection is vital, given the misinformation out there.
Pre-sale inspections are the responsibility of the owner and are usually conducted in conjunction the agency who will manage the sale. This inspection is conducted to ensure that the agent knows of the potential hurdles that may arise during negotiation. After identifying any problems, the agent can make repairs before placing the property on the market. The inspection is not intended to protect the home but 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. This responsibility falls on the buyer. You will need to receive an inspection report, complete with a photographic series, detailing everything about the property. This document is proof that you need to negotiate or renegotiate your price in order to get the property’s actual value. Pre-purchase inspection costs money but is well worth the investment. If you discover severe deterioration or other issues that you cannot live with, you may use the report to cancel a contract. The difference between pre-purchase inspection and presale is down to who this report is for.
Why You Should Not 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. By unveiling the faults in the house as a seller, you can make the necessary repairs as suggested by the inspector. This will allow you to identify potential problems that should be disclosed to the buyer.
A presale home inspection is also useful when developing your sale terms. If the inspection discloses issues, you can address them immediately instead of waiting for the buyer to request a remedy. You can resolve the issue at your own pace, rather than waiting for the buyer to do so.
After the inspection, you will receive a report disclosing the issues in the house and recommendations on how to fix them. The house can be sold with the costs of fixing the issues, or you can charge the buyer for the repairs. Thus, the information from the inspection is useful in pricing and ensuring a smooth transaction.
A pre-sale home inspection also serves as a marketing tool. It informs the buyer of the house’s condition, and the buyer will purchase in full knowledge of any possible surprises in the future. For instance, an inspector may praise your house for its perfect sewer condition and the many years left for the home in perfect condition. You can add this to your listing, making it more attractive than the rest in the market. Also, such a report will convince sellers that you are a serious seller and recommend you to potential buyers.
Transparency is the key to trust and building confidence with buyers. 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 who isn’t sure about the true condition of a house will offer a lower price. Thus, with a pre-sale home inspection, you can deal with such doubts, ensuring that the buyer makes a confident offer knowing that the house is examined and does not have any problems.
It is also important to have pre-sale inspections of your home in order to speed up the sale process. Buyers today want to know that you have finished all of the steps, and they are ready to make an offer. They don’t want a house that has unresolved issues. With an inspection report, you can confirm that the house is in great shape and worthy. 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. An agent will save you lots of hassle, and despite their experience, you should simplify their work by having a presale home inspection. It will make it easier for them to find buyers and will also make the negotiation process much more straightforward.
Some buyers will insist that your pre-sale home inspection report be available. In this case, your listing agent should attend the inspection to understand the report and ensure that there are no exaggerations. This is because buyers can be notorious and use a home inspection to start a renegotiation. Most cases will not involve issues such as roofs with a five-year span or roofs that are in need of replacement.
Pre-Sale Home Inspection Shortcomings
Disclosure issues are the main problem when it comes to pre-sale home inspections. This is because in some states sellers are required to disclose known defects in their home. You will be likely to be disqualified in such cases. Consider researching the disclosure laws of your state before you list the house for sale. If the repairs are not possible, this will be a problem.