Admin

Inspections: Before or After?

By
Managing Real Estate Broker with Coldwell Banker Bain

Our office recently received a referral from an out of state broker.  Since the condition of the home is a challenge, she recommended we have an inspection before putting it on the market.  This is not standard practice in our area.  In fact, even though a home is priced with the understanding there are “issues,” often buyers take the listed price and deduct the cost of the potential repairs.

 

The referring broker indicated that most sellers in her area had the inspection done before listing and provided a copy to all interested parties.  It gives the buyers a comprehensive overview of the condition of the home and helped in the decision making process and negotiations. 

 

Even in areas where this is not standard practice, some companies have adopted this practice and feel it gives their sellers an advantage.  Perhaps it’s time to consider this and advise our sellers that this may help set them apart from their competition.

 

What do you think?

-Debra Snoey, Principal Managing Broker - Kent Station, WA

 

Show All Comments Sort:
Dolores "Dee" Mauriello
Keller Willaims - Wayne, NJ
Realtor, Homes For Sale Wayne NJ

In some states this is very common, not in New Jersey. If the homeowner does not want to pay for a preinspection report another option is to call in professinals to give their heating, air, roof, etc a looking over. Of the two options a certified homeinspection report is best.

 

Oct 23, 2012 12:28 AM
Terry McCarley
Coastal Real Estate - Cape Coral FL - Cape Coral, FL
REALTOR, SRES, CDPE - Cape Coral, FL

It is not common in my area however I can see the benefits of it.

Oct 23, 2012 12:51 AM
Sylvia Jonathan
Coldwell Banker Platinum Properties - Irvine, CA
Broker Associate, SFR

It is very rare, but some sellers ask me if they should do it. I usually tell them that if they have concerns they should have it done so they can anticipate what the buyer's own inspector might find and address some of the issues ahead of time by possibly correct them. Many items that are listed on a report are really easy fixes, and if done before the home goes on market, will be a positive step.

I also caution them that different inspectors write stuff up differently and not to get upset if an item is "found" by the buyer's inspector. What matters is knowing about the big problems.

Oct 23, 2012 01:52 AM
Rafi Footerman
Mid Jersey Inspections - Edison, NJ
Home Inspector, Mold Inspector, Radon and More!

While it's not common in this area, some people do find it helpful.  I find it can be most helpful if the seller is moving prior to the home being sold, has not been owner occupied in the past 2+ years, or the seller has lived there for 20+ years.

Oct 23, 2012 01:53 AM
Larry and Marilyn Mennetti
FIVE STAR REAL ESTATE - East Grand Rapids, MI

AFTER...BUYERS WON'T ACCEPT A SELLERS REPORT. AND, HOW LONG HAS THE PROPERTY BEEN LISTED SINCE THE INSPECTION? A LOT CAN HAPPEN IN A COUPLE OF MONTHS....OR NOTHING CAN HAPPEN. BUT, AS A BUYER, I WANT TO KNOW WHAT CONDITIONS ARE RIGHT NOW, NOT LAST SUMMER, LAST WINTER, ...

IF A SELLER WANTS TO GET AHEAD OF THE GAME AND MAKE REPAIRS OR HAVE AN IDEA OF COST OF REPAIRS, OK....BUT BUYERS WILL GET THEIR OWN. 

Oct 23, 2012 02:07 AM
Fred Sweezer Sr. CMI, LLC.
Hud Certified 203K Consultant - Long Beach, CA
HUD 203k Consultant

Here is the International Association of Certified Inspectors recommendation:

 

Seller's Pre-Listing Inspections

Eventually, your buyers are going to conduct an inspection. You may as well know what they are going to find by getting there first.  Having an inspection performed ahead of time helps in many other ways, such as:

It allows you to see your home through the eyes of a critical and neutral third party.

It alerts you to immediate safety issues before agents and visitors tour your home.

It may alert you to items of immediate concern, such as radon gas or active termite infestation.

It permits you to make repairs ahead of time so that ...

Defects won't become negotiating stumbling blocks later.

There is no delay in obtaining the Use and Occupancy Permit.

You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.

It helps you to price your home realistically.

It may relieve prospects' concerns and suspicions.

It may encourage the buyer to waive his inspection contingency.

It reduces your liability by adding professional supporting documentation to your disclosure statement.

of course there is more positive reasons for the pre-inspection than not getting one!
Oct 23, 2012 02:47 AM
Robert Dalga
Home Analysts, LLC - Kalamazoo, MI
CRI

I have been encouraging my RE collegues to recommend to their clients to have a prelisting inspection done for yrs now.  However, sadly this practice has not been caught on (at least in my area of SW lower MI) for reasons unknown.  It just makes good business sense (not to mention reducing one's potential liability).  Furthermore, it's one less hurdle (i.e. potential delay) to jump before closing.  Think about it...wouldn't you feel better knowing that the home you are selling is in good condition for the new owners?  How about the new one YOU are buying from another seller...wouldn't it be nice to have documentation that it is structurally sound, functionally correct (i.e. all mechanicals working), and no safety concerns.  I know I would appreciate it!  Let's start recommending professional pre-listing inspections folks!!!

RJDalga, CRI (Home Analysts, Inc.)

Oct 23, 2012 02:58 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

NOT recommended in my area - BUT - I have one Inspector who will do a $99 walk thru with the Owner as a pre-inspection. This is good for properties that WE know have issues, but THEY may not realize it. A Third Party pointing things out helps. 

Oct 23, 2012 02:59 AM
Michael Murphy
Bienvenidos Real Estate - Parksville, BC

I have seen this done several times in our area. Its a proactive stance and gives the seller an opportunity to deal with any issues ahead of time or disclose any perrtinent issues as well.

Oct 23, 2012 03:11 AM
Jayne Clement
Keller Williams Realty - Los Feliz, CA
Los Angeles Short Sale Agents

I like it...why waste time?  It will all come out in the wash anyway. 

Oct 23, 2012 04:21 AM
Marshall Brown
Mid America Inspection Services, LLC - Fargo, ND
BSEE, CHI

As Jay mentioned above, it seems that most sellers just don't think it's a worthwhile expense. The InterNACHI list of why it's a good idea that Fred kindly provided should be convincing but....

Sellers should not be expected to be aware of the benefits a pre sale inspection might but I do wonder at Realtors, who have suffered lost sales due to defects found during the purchasers inspection, not promoting them more effectively.

Oct 23, 2012 06:23 AM
M. Lynn Delatte
Developers Realty - Broadview Heights, OH

A pre-listing inspection may help you know about any issues, but many sellers do not want to spend the money just to reveal problems that they would then have to disclose or fix. Typically, my buyers would also still want their own inspection.

Oct 23, 2012 06:51 AM
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

Not common in my area.  I don't recommend it.  I highly recommend that the buyer get an inspection.

Oct 23, 2012 06:54 AM
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

I've had sellers have an inspection done prior to selling their homes so they would be aware of what needed to be rpaired or replaced. They either repaired, replaced or nothing and that depended on the proposed financing and what they would ask for the price of their homes. Often they wanted to make sure their house was up to code for the area. 

Oct 23, 2012 07:58 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I think a pre-inspection could be valuable to the seller. If there are issues to be addressed, the seller would then have time to get bids and get the job done on his or her own time, rather than having to hurry to meet a closing deadline.

Oct 23, 2012 08:51 AM
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Pre-listing inspections are becoming more popular in the Dallas market.  The Seller has the option of making repairs prior to listing.  If the Seller chooses not to do the repairs, the Buyer has an idea about the condition of the property up front.

Oct 23, 2012 03:25 PM
Larry Lawfer
YourStories Realty Group - Newton, MA
"I listen for a living." It's all about you.

I think any seasoned agent can go through a house and determine what the inspection might show as potential issues. I am far more interested in what the Appraiser is going to say.  We can sell a house with issues, but not unless it appraises for that value.  With all my high end listings I pay for an Appraisal up front. This gives me third party information about what they bank will permit. Yes it costs me, but what I make is deals that can close quickly because I know what is going on.  Up with the Appraisal, not with the Inspection IMHO

Oct 24, 2012 04:38 AM
Donald Hester
NCW Home Inspections, LLC - Wenatchee, WA
NCW Home Inspections, LLC

Debra, This is a great subject. I have done several pre-listing inspections. I must say it is not for the faint of heart ; )

No really, I really do think it is a very good idea, but just like you are buying a home the seller may need to be ready for the information that will be provided. 

Another very important issue here. I have done several homes that have been "So-Called" pre-inspected. Unfortunately the seller had hired an inspector that was not thorough and some major items were discovered on my inspection.

This left the seller in what I feel is an improper position. They tried to use due diligence and that backfired on them because there was these additional issues that now needed to be dealt with.

My word of caution is, if you are to choose this path I feel it is in the best interest of everyone involved to hire the best inspectors or not do it at all. An improper inspection will not provide the insurances that everyone is looking for.

Larry, (#41) You may be right about the appraisal, but even a seasoned Agent unless they are going into attics, crawlspaces, on roofs and opening electrical panels etc... may not see some of the major issues.

Oct 24, 2012 08:34 AM
Debra Snoey
Principal Managing Broker, Coldwell Banker Bain - Kent, WA

Thanks to all for weighing in on this!  Actually I can argue both sides and perhaps it more depends on the specific market for that price range and area.  I can see in high demand areas and price ranges it might generate better offers.  Plus, it is the lower price ranges that are moving in our area (South King County in Washington State-just south of Seattle) and often those buyers are cash strapped and would welcome having that done!

Oct 26, 2012 06:38 AM
Brad Baylor
ERA Coup Agency - Milton, PA

It's my opinion that most buyers aren't going to accept a seller's inspection report.  I've had prior buyer's inspections forwarded to me to review with clients I was working with on a listing, and each and every time, while the appreciated receiving them, went ahead and had their own inspection done anyway.  So having the seller's do one ahead of time would be just wasting their money.

Oct 29, 2012 11:46 PM