Real Estate

A TIMELY CHECKUP

More Sellers are opting for a service they hope will speed sales:

A pre-listing inspection.

Many buyers are now saying that a inspection report commissioned in advanced plays a large part in their decision to buy and can help speed the sale.  As housing sales continue to bog down, property owners are turning to new strategies. One tactic increasingly bringing buyers and sellers closer together is a property inspection obtained by the seller before the home is even listed.  A Seller's inspection report is not in lieu of one obtained by the buyer, but it can signal openness and good faith while at the same time unearth an unpleasant surprises.  In some cases, a seller's inspection means repairs, such as leaks or faulty electrical wiring, and will likely be completed in advance on the buyers behalf.  Not so long a go, when sellers were being bombarded with multiple offers, they didn’t have to worry that much about the shape of the home.

Now the seller has to go the extra mile.  Some sellers are worried that their inspection is going to open up a can of worms. Well, the buyer is going to do their own inspection and sooner or later those worms will appear. If the seller knows about them in advance, they can at least start dealing with them and most cases get them fixed. The inspection process is maybe the most important step in any real estate transaction. Most buyers are going to walk away from a sale if the inspection turns up numerous repairs. The seller for minimal costs can handle many of those repairs in advance. If it is a major repair, sellers should know that they can't avoid it. Buyer's can either agree the responsibility for a major repair will be assumed by the buyer at a reduction in price or the seller takes care of it. Most buyers though will not agree to completing major repairs after the sale. Most lenders will also insist that the repairs be completed before the close of escrow.

But on the upside, a pre-listing inspection that give buyers a better idea of where they stand and what, if any, additional work is needed, can also help sellers fend off demands for unrealistic price reductions to cover repairs. With their own report, sellers can choose to spend a few hundred dollars fixing a problem that might mushroom into a claim for more than $1,000 off the price and in the process spark further prickly negotiations.

Most buyers want to turn the key and move in.  They don't want repairs and they don't want surprises. If they know they have to do some of the work, they can at least prepare for that.

Many sellers might be surprised that their home is in pretty good shape.  Making a few repairs before listing the property can sure take a load off their mind.  When homeowners know the condition of their property,  they can avoid a lot of problems and price accordingly. Most inspection costs range between $300 and $600, depending on the size and the age of the property.

A seller's inspection gives them the opportunity to say to the buyer: We found these problems. But we want to make sure that we sold the house in the best condition possible. We fixed these things and here are the receipts and now you don't have to deal with this. Buyers though must remember that any existing home has some worts. They always have and they always will.  So buyers have to be realistic on what they expect sellers to repair.