WHY SHOULD I PERFORM A HOME INSPECTION DURING THE LISTING?
Traditionally, the Buyer has paid for a home and pest inspection, but our industry is changing. Due to the high percentage of buyer’s coming from the Bay Area, they expect the same standard of practice in the Tahoe/Truckee market. In the Bay Area, sellers have a home and pest inspection done before their property “hits the market”. Here are several compelling reasons and advantages for you doing inspections now rather than wait for a buyer to perform when you are in contract:
- First and foremost, buyer’s in a second home market do not want to take on repairs or any type of project. They are buying a second home in our area to enjoy all the activities our area has to offer. The outlook of this buyer is very different than a primary residence purchase where they may be willing to take on some work.
- While the initial investment for both home and pest inspections is roughly $650, I believe that the ultimate dollar value to you is much greater than this. When you have the inspections done and the most important repairs corrected, these reports are provided to an agent or buyer writing an offer (along with disclosures). This enables the agent or buyer to write the best possible offer based on the current condition of the home. The CA contract states that a home is sold As-Is, but the problem is that 99% of the buyers ask for repairs or a credit. Usually, when a credit is requested, it is a higher amount than actual repairs. The alternate route of not doing inspections and some repairs in advance leaves room for all sorts of havoc. In this case, the buyer writes an offer, does their inspections and then submits a Request for Repairs which could result in more money spent on repairs or a credit. The buyer is in the driver seat at this statge as sellers have a tendency to do whatever it takes to keep the buyer in contract. Having the inspections completed up front eliminates (most of the time) that second round of negotiations where the seller almost always at a disadvantage.
- It virtually eliminates escrows that fall apart. The biggest reason for losing a sale is over inspections and negotiations around those inspections. When the inspections are done up front, there are no surprises to the buyers. It doesn’t mean they won’t get their own inspections, but there should be nothing new (or only very small items) on the inspections. Inspection contingency periods can be shortened and deals rarely fall through for this reason.
- It gives you, the seller, the opportunity to repair items prior to getting into escrow. This approach limits your liability up front. We have witnessed time after time, a seller trying to find someone to manage repairs during a short contract period (30 days or less) and having to pay more money due to time constraints and availability of sub contractors in our area.
- Competition: Most listings in our area are doing the inspection/repair approach during the listing period, so in order to be competitive, your property should follow suit.
How’s that for five great reasons!