The importance of Pre-Listing Inspections

By
Home Inspector with P.I. Home Inspection Services

Have you ever had one of your contracts fall through because of minor maintenance issues?

Here is my flier for pre-listing inspections and why they are an important consideration for your clients.

 

P.I. Home Inspection Services

Anyone else is just looking around

Mark Sylvester

#4500001766

http://www.pihomeinspection.com/

 

                                                                                    Pre-Listing Inspection

Seller inspections (sometimes referred to as pre-listing inspections) are becoming more popular because they virtually eliminate all the pitfalls and hassles associated with waiting to do the inspections until a buyer is found.  In many ways, waiting to schedule inspection until after a home goes under agreement, is too late.  Seller inspections are arranged and paid for by the seller, usually just before the home goes on the market.  The seller is the inspector's client.  The inspector works for the seller and generates a report for the seller.  The seller then typically makes multiple copies of the report and shares them with potential buyers that tour the home for sale.  Seller inspections are a benefit to all parties in a real estate transaction.  They are a win-win-win-win. 

 

Advantages to the seller:

  • The seller can choose  P.I. Home Inspection Services 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 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 renegotiation's.
  • 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.

Advantages to the real estate agent:

  • Agents can recommend me directly as opposed to being at the mercy of buyer's choices in inspectors.
  • Sellers can schedule the inspections at seller's convenience with little effort on the part of agents.
  • Sellers can assist inspectors during the inspections, something normally not done during buyer's inspections.
  • Sellers can have inspectors correct any misstatements in the reports before they are generated.
  • Reports help sellers see their homes through the eyes of a critical, third-party, thus making sellers more realistic about asking price.
  • Agents are alerted to any immediate safety issues found, before other agents and potential buyers tour the home.
  • Repairs made ahead of time might make homes show better.
  • The reports provide third-party, unbiased opinions to offer to potential buyers.
  • Clean reports can be used as marketing tools to help sell the homes.
  • Reports might relieve prospective buyer's unfounded suspicions, before they walk away.
  • Seller inspections eliminate buyer's remorse that sometimes occurs just after an inspection.
  • Seller inspections reduce the need for negotiations and 11th-hour renegotiation's.
  • Seller inspections relieve the agent of having to hurriedly procure repair estimates or schedule repairs.
  • The reports might encourage buyers to waive their inspection contingencies.
  • Deals are less likely to fall apart the way they often do when buyer's inspections unexpectedly reveal problems, last minute. 
  • Reports provide full-disclosure protection from future legal claims.

 

 

Advantages to the home buyer:

  • 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 renegotiation's.
  • 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. 

In summary, seller inspections streamline the real estate sales process for all parties involved.  P.I. Home Inspection Services recommends that every home be inspected before being put on the market (listed) and recommends annual inspections for homes that aren't for sale.

 

 

 

 

 

To schedule your pre-listing inspection call me direct!

P.I. Home Inspection Services

Mark Sylvester

(630) 301-1242

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Rainer
2,468
Tim Howe
Residential Quality Analysis LLC - Montgomery, AL

Hi, Mark,

I was nodding in agreement at your claims until I came to this:

Adavntages to the home buyer:

  • 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 renegotiation's.
  • 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. 
  • Let me adress these one at a time.

    The inspection is done already.

    True enough an inspection has been done. But the inspection was not performed for the buyer. The home inspector has no legal obligation to the buyer, and the buyer is unprotected. Your contract should clearly state who your client is and spell out the limits of usage for your report. Letting 'three or four' interested parties use your clients' report as a decision making tool is a foolhardy legal position. Also, as you know, the inspection is a snapshot of the condition of the property on the day of the inspection. It is not a warranty or guarantee of condition.

    The inspection is paid for by the seller.

    Yes, because it is of value to the seller only. It is not a warranty or guarantee for potential buyers.

    The report provides a more accurate, third-party view of the condition of the home prior to making an offer.

    To whom? Again, the inspection you did was for the seller, not the buyer. To give a buyer the false impression that they don't need an inspection of their own because the property has already been inspected, is a disservice to the buyer. As an 'independant third party',  your purpose is not to facilitate a real estate transaction. Your concern should only be to produce the best inspection and report possible for your client.

    A seller inspection eliminates surprise defects.

    I find defects in every house that I inspect for a buyer (that has had a pre-listing inspection). Sometimes the seller chose not to fix (or disclose) a problem that was discovered earlier, sometimes the first inspector missed a defect, sometimes defects occur after the first inspection.

    Problems are corrected or at least acknowledged prior to making an offer on the home.

    See above

    A seller inspection reduces the need for negotiations and 11th-hour renegotiation's.

    This may be an advantage for the seller, but how does it help the buyer to reduce their negotiating leverage? This is an advantage to your client, the seller, but not for the buyer.

    The report might assist in acquiring financing.

    The buyer would have to have an inspection done on their behalf, for this to be true.

    A seller inspection allows the buyer to sweeten the offer without increasing the offering price by waiving inspections. 

    A home inspector should never encourage a buyer to waive an inspection. It is bad for the buyer, bad for the Realtor, bad for business and bad for the profession.

    Mark, I realize that you are marketing your services to sellers, and I fully agree that a sellers inspection is a very good idea for the seller. I do them myself. But marketing from the standpoint of eliminating the need for a buyers inspection is questionable for the reasons I listed above (and others that I did not mention). As independant third parties, we must remove ourselves and not be concerned with the transaction. We are NOT stakeholders, we are experts that our clients (whichever side of the transaction that they are on) rely on for an unbiased, professional inspection.

     

    Have a good day inspecting,

    Mark T (Tim) Howe

    Residential Quality Analysis LLC

    ASHI Cerified Inspector #247537

     

     

     

     

    May 30, 2007 06:26 AM #1
    Rainer
    46,167
    Greg Zaccagni
    The Federal Savings Bank - Wheaton, IL
    Illinois Mortgage Lender

    What are your thoughts about verbal inspections for sellers?

     Greg Zaccagni

    Jun 26, 2007 02:26 PM #2
    Rainer
    2,468
    Tim Howe
    Residential Quality Analysis LLC - Montgomery, AL

    What are your thoughts about verbal inspections for sellers?

     Greg Zaccagni

     

    Hi Greg, Not sure if this question is for me....but

    Do you mean a kind of a walk through with the seller in tow, explaining what you find as you go?

    If that is what you mean; I cant do it that way due to my insurance. I must generate a written report to satisfy my E&O carrier. Even if that were not true, I dont think it would be prudent to do an inspection without documentation. The seller (client) could easily forget something important if it is not written down. I am open to doing partial, single item, walk throughs etc., but I will clearly state what the scope is on the pre-inspection agreement, and produce a report. The home inspection business is too liability laden to not be a freak for documentation. It is a shame, but we have to consider our liability in every decision that we make. The nature of the beast.

     

    Best regards

    Tim Howe

    Jul 18, 2007 12:12 PM #3
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