Is a Pre-Inspection a Good Idea for Home Sellers?
A pre-inspection is becoming more advantageous for sellers than it has in previous years.
Why would a pre-inspection be a good idea for a seller?
Pre-Inspections put the seller in the best possible position giving them more control over repairs and negotiation power. Typically, the inspection has been completed by the buyer vs. the seller but times sure have changed. Homes are currently in such high demand, buyers fear losing their home choice by putting a contingency on the home inspection, so many are foregoing the inspection at all. When the seller has already had a home inspection completed, it can put a buyer's mind at ease when making an offer.
Sellers that get a pre-inspection can discover potential issues that could affect the sale or cost of their home. The pre-inspection allows the seller to make necessary repairs before putting their house on the market, giving the buyer less wiggle room to negotiate. If the seller completes the repairs before listing their home, they can provide proof of the repairs along with the pre-inspection report, again giving them more control in the sales process.
If the seller opts not to complete the repairs suggested in the pre-inspection, it can keep the seller in the driver's seat. Knowing the potential repair and the actual condition of the item needing repair there shouldn't be any surprises throwing the seller off guard. They are already aware of the issue and can negotiate accordingly, whether it be to offer to pay for the repair, split the repair cost, reduce the price of the home or stand firm the seller can make an educated decision on what they are willing to do.
Most may be surprised to find that a pre-sale inspection is different from an inspection conducted for a buyer. The pre-sale inspection is a more abbreviated inspection focusing on the large items of the home such as; heating and cooling system, the roof, foundation, plumbing, septic; if applicable, and more. The standard buyer inspection would include these same large ticket items but would also focus on the smaller items such as the condition of the windows and doors.
The cost for inspections varies depending on which type of inspection is being performed. The abbreviated pre-inspection cost is generally between $175 - $300 while the more in-depth inspection can cost between $400 and $600. If the seller has a pre-sale inspection completed, the buyer could confidentially forgo having another inspection done knowing that the large ticket items are in good standing.
Pre-Inspections are still not common practice, most sellers don't want the additional cost of inspection when it is not something that is required to sell their home. Sellers have the upper hand regardless of having a pre-inspection. Along with the high housing demand and buyers not putting their offers at risk with a contingency of a home inspection, buyers are making offers on homes blindly without any inspection and will deal with the potential repairs once they close.
A seller having a pre-inspection does not only benefit them during this housing boom but, also benefits the buyer. A big advantage for the buyer is peace of mind and confidence in the seller's commitment to the transaction. A pre-inspection gives the buyer reassurance that they are working with someone that is not trying to hide potential issues that could be costly to the buyer.
Even if the sales price is non-negotiable, the buyer can appropriately anticipate additional costs that they may incur after the sale is complete. This makes it easier for the buyer to budget accordingly and determine if the purchase is within their means to continue with the purchase.
For more information on Colorado Springs homes, contact our office at any time.