This is an addendum to my October 20, 2008 post on Pre-Listing Home Inspections. For a column I am writing for The Oconee Leader I asked Mark Lotane, owner of Homepro, a few questions related to the subject of pre-listing home inspections for this column.
Q. Don’t seller inspections kill deals by forcing sellers to disclose defects they otherwise wouldn’t have known about?
That is a great question! And one often asked by home sellers. The reality is that the vast majority of re-sale homes will be inspected by a competent, experienced inspector. So the only thing a seller can really control is not “if” the defects will be known by all parties, but WHEN. And WHEN is critical. Knowledge is powerful. If the Seller is prepared with information via a pre-listing inspection, they have the luxury of time to address and/or disclose issues.
On the other hand, if you pass up that opportunity, you have allowed the negotiating leverage to pass to the Purchaser and their inspector when they approach you with a list of things they “found”. Remember, any experienced Agent will tell you, the chance of a purchaser cancelling a contract is much higher whey they “find” the issues, rather than if you disclose them before they ever sign a contract!
Q. A new(er) home in good condition doesn’t need an inspection does it? Why should the seller have one done? Can you give examples?
I wish that were true. Our experience tells us that every home, whether brand new or 100 years old, needs to be inspected. In fact often times it’s the new or newer homes that require a longer list. Examples: It is well
documented that well over 50% of the time inspectors will find open nail holes in roofing shingles and other roof defects on brand new homes. This past week a relatively new home was found to have some plumbing and roof issues during a buyers inspection. The repairs would not have been expensive; likely less than $3000. Sadly, even though the home had been on the market for 400 days, this buyer cancelled the contract. Why?
Discovering these undisclosed issues caused him to have second thoughts about a property he was previously excited about. The time to discover issues is NOT when you have a buyer standing there. HAVE YOUR HOME PRE-INSPECTED. It will avoid giving a buyer a reason to walk away.
Q. Do seller inspections reduce the need of the buyer to obtain their own inspection?
What you are trying to convey to your purchasers is that I feel good enough about my house, and care enough to ensure a pleasant experience for you, that I have paid out of my own pocket for a certified, experienced inspector to scrutinize my home, and provide a free copy of the inspection report to you. Often times a buyer will go with your report and decide not to hire their own inspector. But even if they take the redundant step of having your home re-inspected, you can rest easy knowing that, even though there are sometimes cosmetic differences in inspection findings, all of the significant issues that could make a difference in the negotiations are already on the table. Remember, you have a lot of competition for purchasers out there. Pre-inspecting is one way you can set your home slightly above all the others in the eyes of your Purchaser. There are statistics to support that Pre-Inspected homes have shorter D.O.M. (Days on Market) and sell for a higher price.
This could be the difference maker that results in the taking away of doubt in a buyer’s mind, may just get that offer over your competition! If you want to contact Mark Lotane about an inspection please email him at marklotane@homeproga.net.
