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Pre-listing/Seller Inspections, What Say You?

I'm seeking some response to everyone's feelings on Pre-listing or seller inspections. In this troubled market I think every advantage should be taken for individuals to sell their house. I have performed these types of inspections and have met with some success for the seller. Percentage wise, I have about a 60/40 split on it's success (60% selling). On the homes that did sell, of which the seller did correct issues with the house for better showing, the seller did think the inspection and report was worthwhile and did help with the marketing of the house. On those that did not sell, the sellers did not correct issues, and didn't use the report as a marketing tool.

What is everybody's opinion on the concept of Pre-listing/Seller inspections? The advantages to the buyer are:

The inspection is done already.
The inspection is paid for by the seller.
The report provides a more accurate, third-party view of the condition of the home prior to making an offer.
A seller inspection eliminates surprise defects.
Problems are corrected or at least acknowledged prior to making an offer on the home.
A seller inspection reduces the need for negotiations and 11th-hour renegotiations.
The report might assist in acquiring financing.
A seller inspection allows the buyer to sweeten the offer without increasing the offering price by waiving inspections.

The advantages to the seller and Realtor:

The seller can choose an inspector of their choice Home Check America for one, rather than be at the mercy of the buyer's choice of inspector.
The seller can schedule the inspections at the seller's convenience.
It might alert the seller of any items of immediate personal concern, such as radon gas or active termite infestation.
The seller can assist the inspector during the inspection, something normally not done during a buyer's inspection.
The seller can have the inspector correct any misstatements in the inspection report before it is generated.
The report can help the seller realistically price the home if problems exist.
The report can help the seller substantiate a higher asking price if problems don't exist or have been corrected.
A seller inspection reveals problems ahead of time which:
- might make the home show better.
- gives the seller time to make repairs and shop for competitive contractors.
- permits the seller to attach repair estimates or paid invoices to the inspection report.
- removes over-inflated buyer procured estimates from the negotiation table.
The report might alert the seller to any immediate safety issues found, before agents and visitors tour the home.
The report provides a third-party, unbiased opinion to offer to potential buyers.
A seller inspection permits a clean home inspection report to be used as a marketing tool.
A seller inspection is the ultimate gesture in forthrightness on the part of the seller.
The report might relieve a prospective buyer's unfounded suspicions, before they walk away.
A seller inspection lightens negotiations and 11th-hour renegotiations.
The report might encourage the buyer to waive the inspection contingency.
The deal is less likely to fall apart the way they often do when a buyer's inspection unexpectedly reveals a problem, last minute.
The report provides full-disclosure protection from future legal claims.

Let's discuss and see where this idea goes shall we?

Posted by Denny McAuley on 01/13/2009 11:24 AM

Comments (7)

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7 Comments on Pre-listing/Seller Inspections, What Say You?

JAN

Denny - I find that Pre-Inspections are very helpful to the seller that is sincere about selling the home. In this economy and the number of homes for sale this is a good thing to prepare that housE before you put out the FOR SALE SIGN. It's good for the seller, good for the buyer and good for the realtor...just one more positive step to getting that house listed and sold. No surprises if all repairs are done before hand.

JAN

My Howdy

there Denny

Welcome

to the group.

A Pre-List Inspection. Sure is a good thing for home owner's , that are thinken about saling there home to have done. Just like Carl said, they won't have any surprises. It's win - win for everyone.

God Bless America

JAN

Hi Denny,

I agree that pre-listing inspections are a valuable tool if used properly, and many realtors that I have spoken to agree. The problem in this part of the country is getting the sellers to agree. Many feel that they are already losing money due to the decline in market value and adding a few hundred extra dollars to the cost, with no real guarantee that it will produce results, is an expense that many choose to avoid. Plus, the buyers will likely hire their own inspector to inspect the house anyway.

In a soft real estate market, a pre-listing inspection may be the deciding factor for some buyers, I am just trying to figure out how to convince the sellers of that.

Kevin

JAN

Hi Denny,

While I think pre-inspections provide great information and tools for an intelligent seller to use as ammunition for a best offense is a great "defense theory". Buyers in our wary market still want to do their own independent inspections. The just won't subscribe to the seller's "hand-picked" inspector and his report. Getting the report, however, helps the seller and I collaborate on which items are most important to remedy before the property hits the market. In this market, buyers are finicky and easily "spooked", and addressing an issue first can make all the difference in the end game -- sold, still for sale, or expired!

Judy

JAN

Judy, Kevin, Dale, Carl and Ceil;

Thank you for your responses. I, too, think that a Pre-listing inspection is but one tool for marketing of the house. Is it the one saving grace to get the home sold? I don't think so, but at least the sellers who may do this is has one advantage over the seller or Realtor who decides, for whatever reason, not to have it conducted.

Would I want my own inspector to perform an inspection on the home with a pre-listing inspection? I would, as no two inspectors, Realtors, clients seem the same thing. But, if the "major" issues have been repaired or replaced and evidence to show this, I think the secondary inspection may find small stuff that is cosmetic or can be handled by the new owner of the house. In my opinion, the pre-listing inspection is to find items that need correction now and issues that can be addressed in the future.

If I were to look at a house that had a pre-listing inspection and my wife and I liked the home, I would have more incentive to begin serious negotiations on the home.

JAN

Hello Denny,

It's still a pretty tough sell in my part of the country makes up less than 3% of my business. The biggest problem is the seller saying " Why should I pay for it let the buyer find the problems" or it's a short sale and there is no money to pay for a pre listing inspection. Also what ever I do find they have to fix and or put it on the disclosure. Most realtors are for it so are the buyers but I find that the sellers are not. One thing I have notice in booking prelisting home inspections is that I offer a pretty big discount that helps me get my foot in the door a little bit.

Sincerely,

Shawn Martin

Crosby Inspections

360 721.4577

MAR

Hi Denny. I use pre-inspections as much as I can when I list with property in Central Illinois. However, I do not recommend them on all of my listings, usually the ones that I expect to have fewer problems. I have found that on all of homes that I have had pre-inspected the buyer has waived their own home inspection. It seems to be a valuable tool to help the home sell faster, put the buyer's mind at ease, and save them a few bucks.

I have a list of recommended home inspectors that I share with my home sellers. When I use the same home inspectors and they let the home inspector know I recommended them the home inspectors usually give a small discount to the home seller which is much appreciated to them.

I have had traditional home inspectons turn into nightmares, usually the week of closing if the deal hasn't fallen through before this. It is a pain to make sure the repairs are done correctly and timely by the seller, that the follow up inspection (that the buyer pays extra for) goes well, and keeping everyone happy.

One new thing I am doing that is off topic a little bit. I am now requesting that all home repairs to be made after the loan committment is received. This takes a lot longer and we have had to extend the closing date, but my last two closings, one representing the seller and one representing the buyer.....UNDERWRITING WAS A PAIN IN THE ASS!!!! We went through three underwriters when I represented the sellers and if it would of fallen through....my sellers would have been out about $1,500 in repairs. These sellers elected not go get a home inspection, but we did have a contract in a week.

Thanks--Ryan Gorman

Realtor~Real Estate Associates

Springfield, Illinois

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