For some unexplained astrological reason, I've had a number of challenging transactions lately. When I first started in the real estate business over 25 years ago, professional home inspections were unheard of. Now they are common practice. It's a rare transaction that does not involve a home inspection. Generally, however, the home inspection is performed after an offer has been negotiated and all documents are signed by buyers and sellers.
In spite of how well a home is maintained, the home inspection ALWAYS identifies issues that need to be dealt with before closing on the transaction. If walls and ceilings could talk, they could tell us about "hidden" problems and ask for attention but, unfortunately, they can't so we have to rely on home inspectors.
In a recent transaction, on what appeared to be an immaculately maintained home, the home inspector discovered (among numerous other things) the sewer had never been hooked up. You can read about that experience here.
In our most recent home inspection, the inspector discovered mold in the attic due to poor ventilation. When the vinyl siding was installed, the vents were partially covered and restricted from allowing proper air flow. It was getting to the point, if left untreated much longer, serious damage would have been caused to the roof sheathing and rafters.
Had we not been able to address these situations in an unemotional manner, both of the above mentioned inspections could have resulted in cancelled sales. We were able to salvage them, but it brings up an interesting point I've long been pondering.
It's becoming even more evident that pre-sale home inspections would be extremely beneficial. The homeowner would not be concerned about undiscovered problems, which could potentially delay (or even kill) closing... and the buyers could be assured they knew what they are negotiating to purchase.
I've had only one seller who, without prompting, ordered and paid for a home inspection before they put their home on the market. They addressed ALL of the repair issues before ever putting the home on the market. It was one of my smoothest transactions ever.
Are there any agents out there requesting home owners do pre-sale home inspections? If so, how are you approaching the issue and what response are you getting?
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector
As a home inspector, I do a few of these each month but it is probably less than 10% of my business. I know some realtors feel that they would prefer to have only one home inspector, not yet another one for the seller, take a run at a house. They think we find enough problems and that two will find more. And other realtors, and sellers, are afraid the seller's inspector might find something serious that the buyer's inspector would miss. In that case, he or she is afraid they will have to disclose something that could be unfavorable, and maybe would not have been seen by another inspector: carpenter ants, damaged structure, mold, etc. I think that, eventually, your idea might become the norm but there is a fair bit of resistance to it now. I also know some realtors are trying to get the sellers inspection and then use it like a marketing tool. For example, they have a recent report out, show it to potential buyers, with check marks on the report or invoices showing repairs were made. Since lots of buyers do not really want to pay for an inspection, some of them are satisfied and that is the only inspection done.
May 13, 2007 04:45 PM
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI
I always suggest a pre sale inspection, but no seller has done one yet. It would have helped on some transactions.
May 13, 2007 04:49 PM
Elliott Home Inspection - Chicago, IL
Chicago Property Inspection
Thanks Carol...what you feel about the matter is dead on,but most likely things will continue as they are. Sellers as a majority would rather not know what is wrong so they do not feel obliged to take care of what is found.
The reasons could be not wanting to spend the money up front to if you do not know about it then it does't exist,kinda like not going to the doctor for a checkup.
May 13, 2007 05:27 PM
Windermere Real Estate / NCW - Leavenworth, WA
Serving Leavenworth, Lake Wenatchee, and Plain
Carol-
I started offering pre-home inspections as part of my services when listing a home. I think it seperates me from the crowd and it helps prevent surprises. I pay for the inspection but I tell the home owner I expect that they will work to fix the problems found on the inspection. My inspector gives me a discount for buying in bulk.
It's a little early to see if it's working to sell houses, but it is part of a package that makes me stand out and get more listings.
May 14, 2007 02:31 AM
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
Hi Geordie,
Thanks for the input. I'm certainly going to push for the home inspection up front. It just makes sense. Do you believe another home inspection should be done on the back end (paid for by the buyers)? In other words, if you were representing buyers and there had been a pre-listing inspection, would you recommend the buyers also pay for an inspection?
May 14, 2007 02:38 AM
Windermere Real Estate / NCW - Leavenworth, WA
Serving Leavenworth, Lake Wenatchee, and Plain
I think it depends. I guess from a liability standpoint a second inspection is a good idea. If it gives the buyer more peace of mind, then by all means get a second inspection. It seems that going with option b for the inspection addendum would make more sense since there shouldn't be any surprises.
I also think it depends on the inspector. If your seller hired my favorite inspector, I would feel pretty good about having a client waive the inspection. If your client hired some of my least favorite inspectors I would act as if it never had been inspected at all.
May 14, 2007 05:01 AM
I.V.P.G. - Inland Valley Professional Group - Claremont, CA
DRE#01784679
Hi Carol,
I not only advise it, I try to insist upon it. I feel so adamently, that if need be, I would even consider paying for it myself. I wrote a post on my site http://Route66Living.com, entitled "Don't Look and it WILL Hurt", about that very topic. Feel free to give it a read, and yes, if you are interested you may pass it along.
Take care, help lots of people and have a wonderful day!
Tisza
May 16, 2007 08:57 AM
Helm Home Inspections - Bellingham, WA
Bellingham, Wa. Licensed Home Insp
From a liability standpoint, if the inspector on the preinspection missed something important, and the buyer chose to forego their own inspection, the buyer would have no recourse from the inspector. The inspector only has liability to the person who paid for the inspection. It could be argued that the person passing on the inspection to the buyer (seller, agent) would be liable.
May 16, 2007 01:16 PM
Elliott Home Inspection - Chicago, IL
Chicago Property Inspection
That's it from now on I do pre-inspection only.
But seriously the court suit would still come down to you through the one being sued.
May 16, 2007 03:34 PM
Helm Home Inspections - Bellingham, WA
Bellingham, Wa. Licensed Home Insp
Maybe, maybe not. You do have an exclusive contract with the purchaser of the inspection. I suppose if they believe you have deep pockets they could come to you.
May 17, 2007 03:22 AM
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
Thanks everyone for the responses. I think we'll see some changes in attitude about the pre-inspections over time as we can relate value to the sellers, not just cost. The activity level of a market has a lot to do with this as well. I was never happy to see inspection contingencies waived during the hot market... when we were competing with multiple offers.
May 17, 2007 05:26 AM
Better Properties Seattle - Kirkland, WA
As a follow up from my post, I think home OWNERS should have their homes inspected every year or two at the same time they have their heater serviced. That would be of great benefit to keeping properties properly maintained before little problems become big ones. But at time of sale, let the buyer do it, not the seller.
May 28, 2007 08:15 AM
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
ARDELL, What cloud are you living on? LOL.
Something like 70% of adults, with children, don't even have a WILL. They don't change their smoke detector batteries and they don't change their furnace filters. If they are that irresponsible why in the world would they do something reasonable like have their home inspected for potential problems? That's why we get paid the "big buck".... to deal with these problems when they are revealed.
Something like 70% of adults, with children, don't even have a WILL. They don't change their smoke detector batteries and they don't change their furnace filters. If they are that irresponsible why in the world would they do something reasonable like have their home inspected for potential problems? That's why we get paid the "big buck".... to deal with these problems when they are revealed.
May 28, 2007 08:22 AM
Better Properties Seattle - Kirkland, WA
LOL What CLOUD are you living on, Carol, where ALL sellers would fix every item in a pre-inspection report before the house goes on market? Knowing them and NOT fixing them before the property goes on market, is not necessarily a good thing for the seller.
May 28, 2007 10:45 AM
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
ARDELL, As I wrote on your blog, I have NEVER asked a seller to fix EVERY item on the list. That would kill every transaction. Generally speaking, we are looking for health, safety and significantly expensive maintenance issues.
May 28, 2007 11:06 AM
Watz Home Inspections - Algonquin, IL
Watz Home Inspections
Good post Carol, A pre-list inspection is good Idea to prevent surprises down the road.
Jun 27, 2007 12:23 PM
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