Pre-Inspections Before Selling

One of the things we recommend to sellers is to do a pre-inspection. Especially in a slower market, a pre-inspection can do a lot for a sale. If the inspection is clean with only a few small items, the seller should fix those few small items and advertise the fact that the property has been pre-inspected. The inspection should obviously be shared with any serious potential buyers! Psychologically, the buyers feel that the owners are proud and meticulous homeowners who want to make sure that everything is perfect and the home will have been well cared for. In some cases, if the offer comes in quickly, the buyers will sometimes forego spending their own money on an inspection and accept the inspection that was done.

If the inspection turns up a laundry list of items, the seller can then fix the "must do" items on the list (electrical, mechanical and plumbing) and mark the balance of the items "as is". This will inevitably reduce the amount of items the potential buyer will ask to have done and dramatically reduce the cost to the seller.

At the very least, you know as a seller what is in store and you have more of a bargaining position in the sale. If there are too many things on the home inspection to contemplate doing, the price should be set below comps and listed "as is". The potential upside here is that because the home is listed below comps, there is a better chance of getting offers as well as getting closer to asking price. If the house is listed at "market" value and the buyer does his own inspection - you run the risk of the buyer walking away or asking for a very large concession in price as well as a list of items that must be repaired.

It has proven time and again to save the seller an average of $5,000 in price and repairs by doing the home inspection prior to listing and gives the agent another tool for negotiations - it makes good sense to save money in this market, if you're agent doesn't suggest it, you should bring it up to them!

As always BE INFORMED and CHECK BACK HERE OFTEN!