Is a pre-sale Home Inspection For You?
The traditional home inspection purchased by the buyer is often used as leverage against the seller to renegotiate the sales contract. Since home inspections are done on most homes sold, these inspections in all likelihood are costing sellers tens of thousands of dollars in loss of equity/profit, not to mention the loss of commissions for those agents involved as well.
A pre-sale home inspection by AmeriSpec Omaha and Lincoln, or pre-inspection, can be a very powerful tool for both the seller and the listing agent. The benefits include:
1. Protecting Your Equity
A traditional home inspection is a condition of sale for most buyers, and is completed after the home is under contract.
Since most sales contracts have a short window of time to complete the transaction, buyers sometimes use the findings to reduce the sales price. The seller often is faced with a decision to fix the problems or reduce the selling price. Unfortunately, sellers often are unable to get competitive bids due to the time constraints and are either forced into taking a single bid for the repair or renegotiating the sales contract.
Seasoned brokers note that most buyers have a tendency to over-exaggerate the true cost of repair by a factor of five. In other words, if it would cost the seller $200 to recarpet a room, a buyer will deduct $1,000 from the selling price to cover the same repair. This can make the renegotiating process difficult.
2. Smoother Transaction/Closing
Without the addenda and renegotiations that often follow a traditional home inspection, the real estate transaction/closing process is definitely more smooth. Brokers who religiously use pre-sale home inspections say it saves an average of 15-20 hours of time per transaction.
3. More Buyers
What better way to make your home stand out from others on the market, especially those on your same street. AmeriSpec gives the client a yard sign that can be put in the yard next to the broker’s sign. Once the pre-inspection is complete, your broker can add a comment to your MLS listing, which most likely will also increase your foot traffic — and increase the likelihood of selling your home.
Research shows that pre-inspected homes sell an average of 15 days sooner than homes that aren’t pre-inspected.
4. Seller Peace of Mind
Eliminate the anxiety and frustration of rushing to complete repairs or renegotiate the sales price after a traditional home inspection. A pre-inspection identifies issues up front, and allows the seller to make repairs on your schedule and budget. Why risk losing a potential buyer?
Brokers have a couple of obstacles to pre-inspections. They include:
1. Seller Disclosure – A pre-inspection by a certified inspector will most likely identify issues that most potential buyers will want fixed before they take possession of the home. These issues will need to be disclosed if the seller decides not to repair them. But we believe an up-front disclosure is better than a last-minute negotiation or loss of sale.
2. Overcoming Change – In today’s real estate market, buyers are paying for traditional home inspections. They want to know the condition of the home before they buy it.
The market has been conditioned to believe that a home inspection should be paid by the buyer. Proponents of a pre-inspection need to convince sellers that paying for the inspection will be in their best interest because of they money they’ll save.
The value produced by the pre-inspection in time and money saved is usually three to five times the cost of the pre-inspection, making it well worth the investment.
Be sure that the inspector conducting your pre-inspection is certified by a nationally recognized organization such as the American Society of Home Inspectors (ASHI). All AmeriSpec Omaha and Lincoln inspectors are ASHI certified and have completed hundreds of inspections in Omaha, Lincoln and southwest Iowa. They bring years of experience and expertise to your home inspection.