Pre - Listing Inspections

As home inspection becomes more frequent and more popular, and now that the market is slowing down, the trend is also towards a rising number of PRE-LISTING inspections.

In addition to buyers requesting home inspections to identify potential problems and to increase peace of mind, some lenders now require home inspections in order to identify and address potential deal-killing problems. Agents invest a great deal of time, money and energy into advertising and showing a home. A PRE-LISTING inspection can help insure that a home is ready to market. Listing agents and sellers are realizing that a PRE-LISTING inspection is a proactive approach to successfully marketing, showing and selling a home. No agent or seller likes to be in the position to react to negative inspection findings in a report obtained by a potential buyer. Home inspectors advise sellers and listing agents o obtain a PRE-LISTING inspection and often suggest appropriate courses of action for preparing the house for sale. A PRE-LISTING inspection enables the agents to hang a “PRE-INSPECTED HOME” sign along side of their for sale sign. Selling agents find this to be an attraction to prospective buyers. Why should an agent needlessly invest time and money only to have the buyer’s or lender’s inspectors discover a major defect that delays, or at worst, voids the deal?

There are pros and cons to PRE-LISTING inspections of which all parties should be aware:

Con: Once the realtor is made aware of a defect, most states’ laws require full disclosure.

Pro: Inevitably, a good inspection could locate major defects (e.g., roof, structure, HVAC, defective products such as LP siding or product recalls such as horizontal furnaces). Many of these items become critical issues, so it is best to be proactive rather than reactive. Inspectors recommend that the seller or agents take an active stance and identity, and in some cases, repair items or provide a statement of “proper operation or certification” by an appropriate contractor. These steps may ease the anxiety of buying a house with potential problems. Sellers typically feel more at ease, as everything is being disclosed. Buyers are comforted knowing that a seller with a history of taking care of the house is in the scope of the deal.

Con: What if the buyer decides to get a second opinion and finds other problems?

Pro: First, home inspectors find that most buyers accept the original inspection if it is a fair and thorough inspection. If another inspector finds additional concerns, they are typically fewer and minor. A second inspection often helps to affirm the buyer’s confidence in the condition of the home. Although, two inspectors may view the house differently, in most cases both will identify the major concerns. More and more sellers are offering a warranty with the house, and PRE-LISTING inspections are just the next extension to this process.

Con: Many home inspection reports are not legally transferable to a third party.

Pro: This protects the inspector, as the buyer may not have been present during the inspection. This also gives the buyer the full benefit of the inspection. Home inspectors may offer a discounted rate to reinspect the house and to provide the buyer with a report. The trend toward the increased use of PRE-LISTING inspections is a positive one, which benefits agents, sellers and the buyers. Home inspectors can highlight the benefits of PRE-LISTING inspections, which only enhance the agent’s ability to create a more desirable sale.
 

By having Building Specs performing a PRE-LISTING on your home you increase you chances of a quick and smooth transaction.