The real estate market has remained very active all through the summer and into fall. Homes generally don’t stay on the market very long, just ask anyone that has been looking to buy. In fact, the average days on market for homes in September 2020 was just 43 in Frisco and 49 in Prosper. Considering homes are selling that quickly, and inventory is so low, why would a seller consider incurring the cost of a home inspection prior to the property being listed for sale? Continue reading below, or watch the following video, for 5 reasons why a pre-listing inspection is a good idea.

1) Transparency

Transparency in business, in all things really, is just a good idea. The more transparent you are when selling your home the fewer headaches and eleventh-hour surprises you are likely to encounter. One of the best ways to be transparent, reduce liability (we’ll cover this more later), and set realistic expectations is to have a home inspection completed prior to your home going on the market. When you provide a prospective buyer complete disclosures, and a home inspection, upfront, you remain in control of the information. This proactive approach can give you the edge, not only when negotiating offers, but over the competition.

2) Smooths Out the Transaction

All homes, unless dealing with a seasoned investor, are bought and sold on emotion. Once a buyer decides to write an offer on a home they often get emotionally attached. Likewise, once the seller receives an offer they start thinking about the move ahead.

There are 3 times during the purchase process where an already stressful situation becomes even more stressful;

• Offer negotiation

• Buyers inspection

• Appraisal

The buyers’ inspection caused apprehension on both sides of the transaction due to the unknown. What is the inspector going to find? How many repairs will be needed? Are there any health and safety concerns? The information that comes out as a result of the inspection can derail the entire deal. The buyer often wants everything fixed while the seller doesn’t really want to fix anything. The end result is one of three options: the buyer will accept the property as-is, repairs and/or a reduced price is negotiated, or terminate the contract.

Sometimes these negotiations go smoothly and sometimes they don’t. If the contract ends up being terminated the house will go back on the market and the seller will be required to disclose the findings of the buyers’ home inspection. Having a pre-listing inspection completed allows the seller to get in front of any problems that could potentially derail a sale.

3) Builds Buyer Confidence

As mentioned above, purchasing/selling a home is a stressful enough time on its own and the inspection only adds to the already present anxiety. A pre-listing home inspection can bring peace of mind to a buyer and take away some of the anxiety present in the purchase decision. By making a copy of the pre-listing inspection available upfront the buyer will be more confident in their decision to buy your home by knowing that there are no major problems, or concerns, going in. If the inspection did happen to reveal a problem or deficiency, and you had that item repaired prior to listing, you will be acting in full transparency and reduce the chances of an unexpected surprise even if the buyer still chooses to have their own inspection performed during the contract period, which they usually do.

4) Reduces Liability

Deficiencies with a home don’t go away over time and will eventually surface. Sometimes, these issues don’t show up until after the home has sold and can become legal issues. It doesn’t happen frequently in my experience, but it does happen. Even if the buyer had a home inspection, and the inspector missed the problem, it doesn’t mean that the buyer won’t attempt to hold the seller liable. Depending on the nature of the problem it is almost always assumed that the seller must have known and just didn’t say anything.

If the sellers’ disclosures didn’t mention any problems and If your pre-listing inspection didn’t find a problem, and the buyer also had an inspection done, which didn’t reveal a problem, your potential liability as the seller will be greatly reduced.

5) You Remain in Control

If any problems are discovered during a pre-listing inspection you are able to determine how best to address the issue before the home goes on the market rather than react to a discovered issue during the transaction. You will have time to get estimates, make repairs, and/or consider pricing adjustments. Getting in front of any potential issues makes it easier for you to justify your list price, reduce buyers’ fears, decrease the number of negotiation items. and eliminate unpleasant surprises while potentially increasing the speed at which the transaction can close and the level of satisfaction experienced by all parties.

If you have been considering selling your home and want to know whether a pre-listing home inspection is right for you, Contact Me and I’d be happy to discuss it with you in detail.