Home inspections have traditionally been for the benefit of the purchaser. Pre-inspected listings benefit all parties – buyers, sellers and Realtors.
Deals Won't Fall Through
Home inspections, performed as a condition of the offer, can kill deals. Sometimes this is because the purchaser 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 purchasers by not explaining that minor and typical problems are just that – minor and typical. If the home inspection is performed prior to the house being listed, 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. Deals will not 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 Agreement of Purchase and Sale. Then the home inspection is done and the purchaser 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; purchasers are suffering buyers’ remorse. Egos, pride and frustration can muddy the already emotional waters. A seller who pays for a home inspection will be further ahead than one who has to renegotiate. They may even sell the house faster.
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 bucks for a house which is not in top condition.
Repairs Prior To Sale
Sometimes, the home inspection will reveal items which should be repaired immediately. A pre-inspected listing allows the seller to repair the problem prior to putting the house on the market. If the inspection occurs after the Agreement of Purchase and Sale, the purchaser 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 purchasers’ expectations. This has caused more than one deal not to close.
For The Purchaser
There is no doubt that part of the value of a home inspection is a guided tour of the house for the prospective purchaser. The inspection company can return to do a walk-through with the purchaser, 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 purchasers will have little or no faith in a report done by someone they perceive to be in the seller's, or Realtor's pocket.
The Bottom Line
We believe that the future of home inspection lies in pre-inspected listings. Offers are cleaner and deals are less likely to be renegotiated or fall through. Pre-inspected listings afford purchasers, sellers and Realtors the information and protection they all deserve.
Visit my home inspection website at www.electrospec.ca