There is no right or wrong answer. Most listing agents do not discuss this with sellers, so most sellers are unaware this option exists. Many sellers will ask the question: Why in the world would I want to pay $300-400 for a home inspection when the buyer is going to have one and pay for it, regardless whether I have one ahead of time?
While that is a very logical position for a seller to adopt, and it does make sense, the answer lies in "reducing the risk once a home seller is in a valid and binding purchase agreement with a buyer." Listing agents generally don't have hard, frank planning conversations with sellers on things that might occur once there is a valid purchase agreement. These conversations aren't fluffy, marketing-oriented and full of pizzazz, but are sobering and may involve the expenditure of dollars.
The #1 reason a valid purchase agreement falls apart is because of a home inspection. If a buyer feels a home will be way too costly to repair, due to major issues, or there is an extensive list of items to repair due to deferred maintenance, the costs, whether great or small, may overwhelm a buyer who may request a release from the purchase agreement. To further complicate matters for sellers, if a seller is in receipt of the home inspection report, the information MUST be given to all prospective purchasers and agents as requested. Generally, if agents perform due diligence, they will know via the MLS that a home was under contract and subsequenly fell apart and will inquire about the home inspection report if their buyer is interested in the home. Will buyer #2 feel the same way as buyer #1? So, it now becomes much harder to sell this home. A pre-listing home inspection and correction of many of these issues simply eliminates putting a purchase agreement at risk.
In addition, items that are identified in a pre-inspection report may need to be stated on the four-page State of Ohio Residential Property Disclosure Form. However, these items can be corrected pre-sale so as to prevent issues from arising. If something really major is identified, such as extensive mold, structural issues, extensive water damage, etc., then the sale will be much harder and may impact the initial asking price. Many times, sellers are not even aware of these issues.
The question is: Would you rather rest comfortably knowing the results of a pre-inspection and correcting items as necessary or wait for a buyer's home inspection?
Even if a buyer is willing to try and stay in the transaction and negotiate with a seller to repair all or many items or ask for a large financial credit (I have represented buyers who have asked for 20K or more), most sellers are unwilling to do either, which is totally unbelievable. I have tracked many properties over time and my assumptions are always validated, the seller ends up with far less money due to numerous price reductions, a longer time on the market, decreased negotiating power and in a worst case scenario, no sale at all. In a strong buyer's market such as in Greater Cleveland, it can mean the difference between success or failure.
Going back to the seller's initial question of why should I spend the money for an inspection when a buyer is going to have one anyway? This is a question that warrants a discussion with a listing agent. A competent, experienced agent raises these types of options and provides good information on which a decision can be made.
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