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I've talked on my personal blog about pre-listing home inspections before, but I think this is such an important subject that unfortunately doesn't get the attention it deserves when a house gets listed.  I feel so strongly about it that I'd rather someone had the inspection and fixed the issues found in the inspection than have me stage a house.  Granted, my husband is an inspector so it stays in the family but no matter how clean, spacious and appealing I can make a house - if major problems show up on a home inspection - not only is there a risk of having the deal fall through, but everyone is scrambling to re-negotiate and fix everything requested by the buyer. 

To clarify:  A Pre-Listing Inspection is one that is preferably done PRIOR to listing the home.  It's full inspection, just as if a buyer were doing it.  Do this step with enough lead time to make any needed corrections on the home. 

Your best bet as a stager or as an agent is to recommend a pre-listing inspection.  Generally they run $300 to $400 depending on the size of the house (most charge by the square foot - how much per square foot may vary by area but here in Tennessee it's generally 11 - 12 cents, and older houses usually get additional fees added on for the extra work involved).  This may be the best investment a seller can make. 

At a recent pre-listing inspection, Bill found the following:

  • structural damage in the foundation that was causing the master bedroom to drop by about 1-2"
  • mold in the crawl space
  • snake skins in the crawl space
  • roof damage in several areas
  • a major leak under the dishwasher
  • a significant gap in the ductwork in the crawl space that was not only wasting energy but sucking crawl space air into the house and circulating it through the HVAC system (maybe this is where the funky smell was coming from?)

This is along with all of the maintenance and other minor issues that were found.  Can you imagine a buyer's reaction (well, you've probably seen it) to this stuff?  The mold alone . . . yeesh.

The client is taking care of all of these things BEFORE staging the house.  She was a bit freaked out when she got the report- but quickly realized that's it is better to know now, than after the house sells.  Of course, no inspector can see everything and things can change over time.  But this step can reduce the chances of the deal collapsing after the inspection.  In my personal experience, houses that had the inspection and made repairs up front glided through the inspection process.  Things were found but were minor and easily resolved. 

So, while it can be a bigger up front investment than some sellers may want to make, it will usually save them a lot of money in the long run.  A combination of the pre-listing inspection, necessary repairs and a great staging job can make the difference between a house selling - selling quickly - selling for more money - and staying SOLD.

 
Post is included in group: Stage It Forward...
Post is included in group: Tennessee Realtors - Join Hands

19 Comments on Pre-Listing Home Inspections - keep it sold after the sale

OCT
24
2008
114,548 Points 1 Featured Post

Hi Liz,

I think this is a great idea.  I'm surea a lot of sellers would want to know what's going on with their property before its listed and a buyer inspects it.  I had a new listing where the seller's took the initiative to have their septic system inspected (normally a buyer's expense) so that they could know that everything was ok with it. 

They stated that they normally have it done every year anyway, so just because the house was being listed, was no reason for them not to have it done this time.

I really appreciate when seller's take the opportunity to listen to the professionals and do what they should in order to get the best price for their home.

Great post.

MeLisa Minter

www.homesmint2be.com

469-766-7379

9:27pm • #1

Yes, I agree with you.... will pass on the advice every chance I can.

9:30pm • #2
1 Featured Post

I have been burned by that though.  I used to pay for the home inspection at the beginning of the listing, but sometimes the listing doesn't sell, and I get stuck holding the bill.  Like I don't spend enough trying to sell the listing.  I don't pay the pre-inspection anymore.

9:33pm • #3

When I'm working with a client, as a stager, I always recommend things like having the HVAC system serviced, and the fireplace, and any other normal things that may be available in the region.  Having this documentation can look really good to a buyer as well.  MeLisa - your sellers were smart to have the septic inspected.  It shows that they are being pro-active and thoughtful about listing - not just throwing it out here to see what would happen.

9:35pm • #4

Steve - I always recommend having the seller pay for it.  I can really empathize with you on that - it's a decent size investment.  By having the seller pay for it - not only does it bring them into the process more and make them own it - it can also be used as a maintenance inspection if they end up staying there instead of selling.  The things we find on the inspections are sometimes pretty scary.  Sometimes it's a bunch of minor things - but you just never know.  I've had agents pay it before and I always wondered about that.  The report is about that specific house and ends up in the hands of the home-owners who may or may not end up selling.  So, yeah - you foot the bill for someone else's benefit.  Thanks for the comment.

9:39pm • #5

We recommend pre-listing inspections, too. It's not like any problems that exist aren't going to be found eventually anyway. How much better to have them found when they don't create a crisis, or even ruin the sale!

9:44pm • #6

Great topic!! I have used pre-inspections before with much success.  I personally think that buyers feel much more confortable and "easy" the mistery home inspection.  It benefits sellers and buyers. I always suggest my sellers to pay for it.

10:24pm • #7
OCT
25
2008
121,848 Points Outside Blog

Great advice - Gives the seller time to address any issues and avoid surprises.  If you have not conducted a pre-inspection it can be stressful to wait for the inspection results when it could mean repairs, price reductions for repairs, or loss of a contract.

5:41am • #8
1 Featured Post

Great point! It's so important in this market to forsee and fix any potential issues BEFORE they become issues. Today, people drop out of escrow for so many small reasons - don't give them big ones like mold!

11:23am • #9
276,116 Points 1 Featured Post Outside Blog

Liz, we also encourage pre-listing inspections to our clients.  It gives that extra assurance to those who are considering the home.

1:53pm • #10
OCT
26
2008
202,237 Points 3 Featured Posts Outside Blog Hit Router

Liz, thanks for this post.  I see so many stagers asking questions in their posts and comments about why Realtors don't stage.  There are sooo many more things going on than just the staging piece.  The staging piece is the frosting on the cake,but the other pieces (inspections, appraisals, repairs, living conditions, etc) are crucial too.  This is important and can save the sellers money in the long run.  Many people just don't know how much can go wrong until it does.  Thanks for the good advice.

12:09am • #11
OCT
28
2008
531,037 Points 4 Featured Posts Outside Blog

Liz... great information here.. A home inspection prior to the listing is a great idea.

10:26pm • #12
OCT
30
2008

We feel that a pre-inspection is the smartest thing that a seller and the agent can have done.

With so few buyers in the market right now why let things fall apart over something that could have been easily and affordable corrected.

The money that you spend for the pre-inspection can save you thousands when the buyer comes back with wanting a huge reduction.

11:20am • #13
DEC
17
2008
188,298 Points 2 Featured Posts

Does Bill do the repairs you mentioned in your profile?

I'm glad to see quite a few using pre-listing inspections to take out the anxst of the buyer's inspection off the seller's and listing agents backs.

9:55am • #14

It depends on what the repairs are - we have to make sure we don't cross over the fine line of saying there's a problem, then offering to fix it.  Also, if the repairs are in the realm of structural, electrical, HVAC or plumbing, I always have a licensed contractor come in.  Bill does things for me like lay tile, change air filters, fix railings on decks, repair drywall, add or repair trim, change out knobs & fixtures, etc.  This is after I've gone over his inspection report and my staging report with the client to determine priorities. 

We never offer repairs if it is a traditional inspection (for the buyer), but on the staging/selling side of it we do if I am the one who brought him in to to the inspection as part of my staging process.  Bill did finish carpentry and remodeling for 5 years full time, and we have been flipping houses for 15 years.  So I really appreciate his insight, as well as his skills, when we go to work on clients houses.  I consider him part of my team that I bring in to make a house really marketable.  As a home inspector - it can increase the number of inspections you do but it can take some convincing to get the realtors to push it.  I've found that once a realtor sees the benefits (smoother sale and less problems once the house has sold), they always recommend us to their sellers.  Thanks for the comment - are you doing pre-listings?  I think in this market, especially, they are crucial.  People are looking for "deals" and will use the buyers home inspection to crush a seller.  Our goal is to minimize that - we don't guarantee we'll find every single thing (no one can) but do our best to get that house in the best condition it can be within the clients budget. 

10:15am • #15
304,530 Points 8 Featured Posts Attended Rain Camp Called Shot Master

Liz, we did this with our last home and I really think that it made a difference in the sale.  The inspection report was in the house for everyone to see.  Since we'd had a major earthquake in our area, just three years prior, people were very leary and the report eased their worries. 

Just like with staging we believe that it takes money to make money and with the largest investment ever, it should be done. 

10:33am • #16
DEC
18
2008
188,298 Points 2 Featured Posts

Glad to hear y'all are doing so well  at it.  Sounds like a really good partnership.

6:08am • #17
122,970 Points 5 Featured Posts Outside Blog

This is an idea whose time has come. With the competiton in the market now and for the forseeable  future, Realtros need to work on how they will rise above the competition for listings.

I recently met with a Home Inspector in one of my networking groups. As I have 30 years in the construction business, I could see he was very competent at what he does and how thorough he was in his reporting. We have agreed to create a power team that will do Realtor presentations together.

Buyers are looking for more service from Realtors than ever before.  We will be an important added value to the Realtors marketing team when they are presenting their listing proposals to their clients. They will be the Realtors that make sure they have done everything possible to get the offer to go through with the least amount of reasons to let the deal die.

8:32am • #18
FEB
05
2009

Liz,

So many agents and brokers refuse to consider the value of a pre-listing inspection. Why do they want to wait for the buyer's inspector to possibly discover enough issues to jeopardize the deal? Logic would say, "Do It Now", before the sign is planted in the yard. The actual listing may even be delayed if major repairs are required. As an inspector, I feel more comfortable completing the pre-listing inspection, less pressure than the typical buyer's inspection.

See my recent post regarding our Move In Certfied program.

 

 

8:31pm • #19

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Liz Jenkins

Franklin, TN

More about me…

a fresh space :: home staging & thoughtful organizing

Address: P.O. Box 452, Franklin, TN, 37065

Office Phone: (615) 509-1933

Email Me

Liz Jenkins, home stager and professional organizer, blogging about whatever comes to mind. Find me at: www.afreshspace.com!


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