Home inspections have traditionally been for the benefit of the buyer. A pre-listing home inspection benefits all parties (buyers, sellers and Realtors).
Deals Won’t Fall Through
The findings of a home inspection, performed during the option period, can kill deals. Sometimes this is because the buyer gets cold feet, sometimes there’s a big problem no one knew about. Sometimes it is because the house has been misrepresented, sometimes it is because the home inspector scared the buyer by not explaining that minor and typical problems are just that – minor and typical.
If a pre-listing home inspection is performed, all parties will be aware of the physical condition of the house before an offer is drawn. There will be no surprises after the fact and deals are unlikely to fall through.
Pre-inspected Listings Avoid Renegotiation
In a buyers’ market, most houses have to be sold twice. It takes a lot of work to get a signed contract. Then the home inspection is done and the buyer wants to renegotiate.
If all parties know the condition of the house prior to the offer, there is no need for renegotiation. As most real estate agents know, renegotiation is very difficult. Sellers have already mentally sold the house and buyers are suffering buyers’ remorse.
A seller who pays for a pre-listing home inspection will be further ahead than one who has to renegotiate. The house may even sell faster and for more money.
An inspection at the time of listing can also help a Realtor deal with a seller who has unrealistic expectations. The inspection report is good ammunition for explaining why you can’t ask top dollar for a house which is not in top condition.
Repairs Prior To Sale
Sometimes, the home inspection will reveal items which should be repaired prior to putting the house on the market.
If the inspection occurs after the contract is signed, the buyer could walk, renegotiate, or depending on the inspection clause, the seller may have the option to repair.
A repair done by an unmotivated seller may not be the best repair and may not meet the buyers’ expectations. This has caused more than one deal to fall through.
Peace of Mind for the Buyer
Part of the value of a home inspection is a guided tour of the house for the prospective buyer. The inspection company can return to do a walk-through with the buyer, if requested.
Reputable Inspection Companies
Pre-inspected listings will only have value if the home inspection company is perceived to be reputable, qualified and properly insured. Prospective buyers will have little or no faith in a report done by someone they perceive to be in the sellers or Realtors’ pocket.