In today's market when buyers have multiple choices in a neighborhood how do you make you home stand out?  Certainly every Realtor® will talk to you about pricing your home to sell and talk to you about making sure your home is free of clutter.  A good agent will make sure that your home has the best quality photos in the MLS and your agent may even bring in a professional stager for a consultation if it is necessary. 

We hear the commercials for the high end car dealers talking about the benefits of buying a "certified pre-owned" car.  They lure you to the lot with guarantees of 32 point inspections or free vehicle reports to show you the car wasn't salvaged from a flood.  So why don't you make your home a "certified pre-owned home"?  Instead of waiting for a buyer to conduct a home inspection, after you have already negotiated what you thought was the sales price of your home, take the first step and have the inspection before you list your home for sale!

When we live in our homes we tend to overlook some of what we think may be cute quirks and don't realize that the next owner of the home may consider them to be a excuse to ask you to lower the sales price even further or jump through hoops to make repairs..  So the fan in the attic quit working at the end of the summer and the shower valve leaks ,no big deal right?  Wrong according to the Virginia sales contract all electric and plumbing must be in working order.  Both of those items would fall under the category of MUST FIX.

How about the rotting trim around the back door, loose roof shingles and wobbly stair railing?  The new buyers are going to ask you to fix them or credit them with some cash to have them fixed themselves.  Do you see where this is going?  If you are pro-active and have the home inspection conducted on your own and find out what issues there are you can fix them on your terms or be prepared to set your price accordingly.  If you have an older home and haven't had a termite protection plan in place go ahead and have the termite company come by too. 

The next part of being a "certified-pre owned home" is to provide a home warranty for the buyers.  They are going to ask for one anyway so buy it when you list the home and SURPRISE if anything breaks during the listing process you are covered by the warranty as well.  The final part of the process is to consider an upfront property appraisal.  No matter how many ways you look at the competitive properties in your neighborhood the bottom line is going to be what the bank says your home is worth.  Appraisers take a different approach to valuing your home than a Realtor®.  They are the final word on pricing no matter whether we like it or not.

So of course you are thinking how much is all of this going to cost me?  Home inspections prices are generally based on the price, size and type of the home so for a mid range let's say $500.  A termite inspection will be another $50.  Home warranty will be around $400 and the appraisal will be around $350.  So for less than $1500 you can put a different spin on your home.  The $1500 you spend up front to become a "certified pre-owned home" will save you more in time, hassle and aggravation than waiting to re-negotiate your home sale after the fact.

Prince William County
 
This post has been included in Virginia Information Essex County, VA Information

17 Comments on Is Your Home a Certified Pre-Owned Home?

OCT
11
2007
700,127 Points 72 Featured Posts Localism Sponsor Outside Blog
Cindy, I just flagged this one to be featured.  This is a totally fabulous idea.  Wow!
8:48am • #1
135,817 Points 19 Featured Posts Outside Blog
Great idea...I wonder if the buyers will trust this? It should help get you noticed anyway and make your listings stand out.
8:51am • #2
487,164 Points 41 Featured Posts Localism Sponsor Outside Blog Hit Router

Kelly-we make all the reports and repair receipts (if necessary) available in a binder for a serious prospect to see.  They can still have their own inspection and their inspector may find something different but at least there are few surprises.

 

 

 

9:13am • #3
118,799 Points

Cindy:

Very interesting idea.  It definitely has U.S.P.

9:39am • #4
183,334 Points 9 Featured Posts Localism Sponsor Outside Blog

Interesting concept that would certainly save time and effort for agents plus a bit of cash for trusting buyers.

9:42am • #5
121,430 Points 6 Featured Posts Outside Blog

If only more sellers would agree to do this and follow through on it, their homes would sell much more quickly and for a better price.  (And most likely they'd be more likely to price the home realistically in the first place, having an objective third party analysis of its problems in hand.) 

 

10:18am • #6
104,117 Points 5 Featured Posts Outside Blog
More and more homes are showing up on our local MLS with warrantee. Buyers find that very attractive.
10:19am • #7
OCT
12
2007
221,841 Points 12 Featured Posts Outside Blog

Great idea Cindy!  Of course buyers will want their own inspector and their lender will require their own appraisal; but at least the sellers are aware of any(most) issues and have a chance to fix them in order to get top-dollar.

Plus; in my experience - when buyers find things wrong on a home inspection - they start getting pickier and picker (and start looking for things wrong).

11:09am • #8
OCT
13
2007
872,064 Points 68 Featured Posts Outside Blog

What a great idea! I love it and you are right for $1500 you can avoid a buyer asking for $5000 off the price of a home and more than likely sell your home quicker!

12:26am • #9
OCT
14
2007
653,300 Points 104 Featured Posts Localism Sponsor Outside Blog Hit Router
Cindy- This is a great idea for your area. Here it is just a pain in the you know what to even get a seller to buy a home warranty! When I worked in California a home warranty was expected and also part of the contract. Here they finally put a tiny box you can check off if you are including one in the sale. But for some reason here it just has not caught on in all 12 years I have been here. And now with people not being able to pay their payments, most short sales and pre foreclosures do not have the $1500 to spend on something like this. Katerina
5:34pm • #10
OCT
17
2007
303,106 Points 15 Featured Posts Localism Sponsor Outside Blog
Hi Cindy,
I think this is a grand idea and one I plan to try and implement with my sellers.  Thank you.
1:38pm • #11
OCT
18
2007
Sounds like a great idea. I bet this will become more common in the near future. Not too long ago there really wasnt any car companies doing it and now its pretty much standard across the used auto industry. I bet in ten years it will probably be standard across our industry too. Buyers are always looking for something to make them feel as if their big purchase is justified by a "good deal".
1:00pm • #12
Localism Sponsor
Great idea!  I love it!  I'm going to start doing this!  Thanks for sharing!
1:27pm • #13

When I bought my truck I got a "Certified pre-owned" car.  That means that the warrenty is backed by the faith and credit of Ford.  My first point of contact is going to be the Dealership, as they "Certified" and sold it to me.  Its common to offer the Home Warrenty around here.  The buyer is going to ask anyways. 

So who "Certifies" the pre-owned house?  As a buyer I would say the Brokerage is backing the certification. 

1:37pm • #14
OCT
24
2007
1 Featured Post Localism Sponsor
Thanks for reading my blog and pointing me to yours. This is a terrific idea. i already offer homeowner warantees but I love the sound of the certified pre-owned home....thanks and great idea. I will share with my office here in North Jersey. Happy selling! ;)
7:27pm • #15
OCT
25
2007
Great Ideas, Cindy!  Congrats on being a great benefit to your clients!
11:45am • #16
OCT
26
2007
1 Featured Post

People are still remembering the "good Ole days" when you just stuck a sign in the yard and sold as-is.  That is no longer acceptable and it is our job to help sellers get ready for THIS Market.

You have a way with words. Thanks for putting this topic into terms that sellers can understand...very useful!

8:37am • #17

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Cindy Jones-Northern Virginia Real Estate & Military Relocation Services

Woodbridge, VA

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