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the Pre-Listing Home Inspection.

By
Real Estate Agent with Jameson Sotheby's International Realty

The pre-listing home inspection.

Is it part of your listing program?  Do you recommend it all the time, or just with a certain type of home?  The items that you uncover at that pre-listing home inspection?  Do you prepare your sellers that they'll need to address those issues... or "disclose" those issues?

If you do recommend the pre-listing home inspection.. and the sellers find a fair amount of inspection issues that need to be repaired... how do you prepare them for any issues that a buyer's inspection might turn up?

We all know that just because inspector A found a number of items, and those items have been repairs, doesn't mean that inspector B won't find more.

I know many agents who strongly recommend pre-listing inspections, and other agents who just as vehemently recommend against them.

Where do you stand?

Posted by

 ALAN MAY, Realtor®   
Specializing in Evanston Real Estate and North Shore Real Estate

Jameson Sotheby's International Realty, 2934 Central Street, Evanston, IL 60201
Office: 847.869.7300      Cell: 847.924.3313      Email: Almay@aol.com

Evanston Real Estate & North Shore Real Estate
Licensed in Illinois

   

Comments(20)

Marty Snyder
OwnerLand Realty - Monroe, OH
PSA, SFR, SRS; Ohio Homes for Sale

You have brought up an interesting question. I have a listing right now that would have already been SOLD if the seller's had done a pre-listing inspection. Reason being-home was under contract, the buyer's inspections revealed some tree roots within the septic system causing it to not function correctly. Seller's agreed to have the repairs done, BUT, the buyer demanded a brand new tank due to its age. (40 years) IF the sellers had fixed the minor issues before the buyer's inspections, the age of the tank would most likely not have been an issue.

Mar 27, 2016 12:35 AM
Alan May

an interesting point.  I have one of those at the moment, too.... some water damage on the ceiling... and the buyer is asking for all sorts of issues regarding the water damage... that they wouldn't have asked for had the issue been discovered during a pre-inspection...  and the repair made prior to listing.

Mar 27, 2016 01:14 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!

Hello, Alan! This is an interesting read. Thanks for sharing this and I hope you have a pleasant day ahead!

Mar 27, 2016 03:10 AM
Alan May

glad you liked it.

Mar 27, 2016 03:41 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Alan- I hope to read many comments on this topic because I've read reasons for both sides. When I'm giving a consultation, I suggest they discuss it with their agent.  I would think they would want to know what could show up and address it.

Mar 27, 2016 05:51 AM
Alan May

Your counsel is very wise.

Mar 27, 2016 08:17 AM
Mimi Foster
Falcon Property Company - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I don't normally do them because, in my experience, after the Seller's fix the major items, then the Buyer's inspection produces another list of problems. When I've done them, the Sellers have wanted to dig their heels in because the house is "now in good condition" and why didn't their inspector find that? 

Interesting conversation with Marty Snyder above. While the issues you both addressed would require subsequent disclosure as having been fixed, people tend to accept that and move on. But you're so right, when they find it and want it fixed, it opens a can of worms. Great question, Alan! 

Mar 27, 2016 11:52 AM
Alan May

One can of worms... coming up.

Mar 27, 2016 10:52 PM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I very seldom use one and if the inspecter misses anything the homeowner must still disclose andything not found if they know about it.

Mar 27, 2016 12:21 PM
Alan May

always important to disclose.

Mar 27, 2016 10:52 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Alan, I am all for pre-inspections.  Yes, inspector B may find more … if that happens and it creates an issue, then my inspector and inspector B need to work it out. It’s either there … or it is not.  I see this more times with termite inspections.  

Mar 28, 2016 12:54 AM
Alan May

I'd love to be a termite on the wall, listening to the conversation between inspector A and inspector B.

Mar 28, 2016 01:45 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I can go either way on the pre-list home inspection.  The major items an inspector would find should be the same.  The minor issues will likely change depending on the inspector.

Mar 28, 2016 02:51 AM
Alan May

They should be... but they often aren't.

Mar 31, 2016 01:03 PM
Lisa Heindel
Crescent City Living LLC - New Orleans, LA
New Orleans Real Estate Broker

I wish more sellers would do pre-inspections, because they often don't trust the findings of a buyer's inspector. Hiring their own would give them more confidence in the results AND allow the listing agent to guide them on necessary repairs before the first showing.

Mar 28, 2016 06:03 AM
Alan May

But what if they hire an inspector, and repair a couple thousand in things he finds... only to have the buyer's inspector find a couple thousand in different things??

Mar 31, 2016 01:04 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

 

                   thank you Alan May for my ah-ha moment. 

Apr 02, 2016 10:50 AM
Alan May

Thank YOU for my "Woo-hoo" moment!

Apr 02, 2016 11:04 PM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Alan, I recommend them only for those owners that think their home is in perfect condition.  

Apr 02, 2016 09:23 PM
Alan May

and just how many perfect homes do we run across?

Apr 02, 2016 11:04 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Alan. I recommend them when the seller has been in place for an extended period of time. Enjoy your day! 

Apr 02, 2016 09:51 PM
Alan May

Hmmm... you and Gabe should talk.

Apr 02, 2016 11:04 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I can see why Kathy chose to highlight your post!  Well done!

Apr 02, 2016 11:51 PM
Alan May

Aren't Kathy's posts, of what she's learned this week, great?

Apr 03, 2016 02:16 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

I do "require" my sellers to inspect. On condos, property inspection only, on houses: both property & termite pre-MLS. We then decide, based on the findings, to either adjust our price and defer maintenance or make the repairs and be firmer on market value. It's a great practice, especially with TRID. It saves me a lot of negotiating, price reductions and boosts the confidence of the buyers who proceed to view & offer; cause the report is on the MLS for their preview.

Apr 03, 2016 12:51 AM
Alan May

An interesting perspective. We don't see many termites, in our area, so no need for that termite pre-inspection here.

Apr 03, 2016 02:17 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I'm not an agent but I think it's a smart idea to know what you are dealing with and cut the risk of any surprises. I say have the preinspection!

Apr 03, 2016 01:58 AM
Alan May

So... here's the flip side.


You do your preinspection... pay $400 for that, and the inspector finds $1,500 worth of issues that your seller repairs.  Now he feels he's ready for the market.


You find a buyer who does their own inspection, and they find $1,500 of issues that your inspector didn't find, and they want them repaired in order for the deal to go forward.


Now your seller is angry.  Why did I spend $1,900 with the first inspector??  And he's angry with his agent (you), too.  Why didn't we just wait for the buyer's inspector to identify the issues and repair them when they find them?


A conundrum, no?

Apr 03, 2016 02:19 AM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

The listing agent should jot a list eye sore items ask the seller questions. 

They need to be removed, repair what are you doing with the dismantled car in the back... How about termite before putting it on the market?

Sam Shueh

Apr 03, 2016 03:40 AM
Alan May

Termites aren't much of an issue in our area.

Apr 03, 2016 05:00 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Alan May Talk to Cheryl Ritchie who will not take a listing without a pre inspection. If the seller refuses, she refuses the listing. I am starting to see the wisdom of this.

Apr 03, 2016 09:40 AM
Alan May

There are lots of agents who won't... "____" until the client "_____".  (won't show property until they get preapproved... won't take a listing...)... I won't make those blanket statements.


I take each situation one at a time.

Apr 03, 2016 11:37 AM
Praful Thakkar
LAER Realty Partners - Burlington, MA
Metro Boston Homes For Sale

Alan May I recommend a pre-listing home inspection.

At least the seller begins with something - and is not a surprise when buyer's inspector reveals these facts about the home.

Apr 03, 2016 03:01 PM
Alan May

So, do you recommend repairing what they find, or ust "knowing" what needs repairs?

Apr 03, 2016 10:31 PM
Praful Thakkar

Usually, if there are minor fixes, Alan May I request the sellers to take care of it.


And if there are major, most of the time, refelcted in price.

Apr 04, 2016 04:03 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I have not recommended a pre-listing inspection in the past.

Based on some of the comments here, though, perhaps it's not a bad idea. Although I can see the negative as well - paying lots of money up front to fix things and then having inspector #2 finding more. Hmmm. Although if the first inspector was thorough the big things should be found and repaired, so anything else should be minor and can be "no we won't fix" items. 

Hmmm.

Apr 03, 2016 08:41 PM
Alan May

Inspectors are like Realtors.  No two are alike.. and while they'll find many of the same things, each inspector will likely also find some different things... depending on where they come from.


Some inspectors started as plumbers, some electricians or carpenters, and some were general congrators in a former life.  Depending on the area they came from, they may tend to concentrate on a different area. and hence find different things

Apr 03, 2016 10:33 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have not had any listings where the seller had  a home inspection.

Apr 03, 2016 09:11 PM
Alan May

duly noted.

Apr 03, 2016 10:34 PM
Melissa Spittel
Coldwell Banker Residential Brokerage - Westminster, MD
"Achieving Results Together "

I typically don't recommend a pre-listing inspection, but do explain the "home inspection process" upfront to the seller so they know what to expect after an offer is accepted. I do have an upcoming seller, however, who is preparing their home for listing and 2 weeks ago asked me for some home inspector recommendations. They have been in their house a long time and want to avoid any "surprises". It will be interesting to see what happens. 

Apr 04, 2016 03:43 AM
Alan May

Yes... I explain what to expect from the home inspection process, too.  From both sides of the transaction.


I hate surprises, and our clients do, too!

Apr 04, 2016 06:29 AM