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So, in the last transaction I closed, I learned more than a few important lessons. On the same transaction in Fountain Square I described in my last post, I spent a lot of time putting myself in the shoes of the listing agent and the seller. The day before closing the listing agent told me, "I will do a jig if this one closes." While I could share her sentiment, I was really PO'd that she used the owrd "if" the day before closing. I let that roll off my back, and after getting off the phone I thought about what I would have done in her situation with her seller.
I think a pre-inspection would have helped this situation greatly. I am a big fan of pre-inspections, especially in this buyer's market (which has been the case in Indianapolis for years in most areas, unlike some of your areas that are just now transitioning to buyer's markets). It helps the listing stand out in a crowded field of homes to choose from, and also assures the buyer of the condition of the house. It assists the seller in that the repairs can start being done on their terms, by a qualified contractor of their choosing- plus they have more time to get a variety of estimates on the work and have more time to wait for the right contractor. It also gives the seller an idea of the scope of the work that the buyer may likely request and to help decide how to market the house.
It's hard to say what would have happened if the seller in Fountain Square had done a pre-inspection. Obviously, they would have had to disclose any defects found in the pre-inspection. Had they had a pre-inspection, they would have known that the cost of repairs was going to be about 5% of the purchase price, an amount that would potentially make buyers walk away. The seller then could have chosen to market the property as-is, at a lower price, to a smaller field of buyers who would be interested. However, without the pre-inspection, the seller has the chance that the buyer will choose a brick-kicking crappy inspector and many of these issues won't be caught.
I have thought about this and decided that if it were my seller, I would have recommended a pre-inspection. Aafter getting the inspection report and seeing that the cost of repairs would likely equal 5% or more of the purchase price, I would have recommended selling the property as-is and providing a copy of the pre-inspection.
Are you using pre-inspections and how? What would you have done in this situation as the listing agent?
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.