The home inspection is a standard step in the closing process, but it can be stressful for sellers. You might anxiously await the results of the inspection, hoping nothing was revealed that will cause the buyers to re-negotiate. If the inspection report isn’t favorable, the buyers may request a lower sale price or walk away from the deal altogether.
The best way for sellers to prevent this issue is to invest in a pre-listing inspection. The inspection is exactly the same as a buyer’s inspection, but it’s paid for by the seller and occurs before the home hits the market. This allows you to be better informed on the condition of the property before prospective buyers set foot in the door.
If you’re preparing to sell your house, you should understand what a pre-listing inspection covers and why it can be so valuable.
What Does a Pre-Listing Inspection Cover?
A pre-listing inspection covers the same structures, systems, and appliances in your home as a buyer’s inspection. Here are the main areas your inspector will examine:
- Roof
- Plumbing
- Electrical system
- HVAC system
- Kitchen appliances
- Ventilation
- Insulation
- Foundation
- Fire safety
- Outdoor water drainage
Your home inspector may offer additional services for an extra cost, or you may need to hire another professional for certain evaluations. For instance, most standard home inspections don’t include mold testing or radon testing. If you have concerns about these issues in your home, you could get a specialized inspection.
Why Should Sellers Get a Pre-Listing Inspection?
A pre-listing inspection gives you more power and confidence, which will help your house perform better on the market. The following are the key reasons why any home seller should get a pre-inspection:
Helps You Price Your Home Accurately
Getting a pre-listing inspection is one of the best ways to ensure your home is priced accurately. If your house is overpriced for its condition, you may struggle to attract buyers or find yourself stuck in an endless back-and-forth of negotiations. If your house is underpriced, you’ll lose out on some profits.
Your agent can use their market analysis along with your pre-inspection report to determine a fair market price for your home. From there, you can either make the repairs yourself to increase the house’s value, or you can leave the price as-is and let the buyer take care of the work. Both options allow you to price your house competitively and maximize your profit.
Gives You Control
If the buyer’s home inspection reveals a major problem with the house, they have a lot of negotiating power. They could request a price reduction, or they could ask you to make the repairs before closing and provide receipts. Although you should assume that buyers and their agents are acting in good faith and trying to achieve the best possible deal for everyone, these negotiations can get tedious.
Instead, getting a pre-listing inspection allows you to take full control over the home repairs. You can hire any contractor you want or even complete the work yourself. Then, when your house hits the market, buyers will find little fault with it.
Makes Your Listing More Attractive
A positive pre-listing inspection is very attractive to home buyers. You can include the inspection report in your listing or offer it to prospective buyers at their request. When a buyer knows that a house is in good condition, they’re far more likely to make a competitive offer. They may even waive their own home inspection if your pre-listing report gives them enough confidence.
Gains Trust of Buyers
Sharing your pre-listing inspection with prospective buyers is the ultimate form of transparency. The pre-inspection communicates to the buyers that you’re fully aware of the condition of the home and aren’t trying to hide anything.
Building rapport with the buyer pays off in many ways. When you have the buyer’s trust, they know you’re not trying to trick them into a bad deal. They’re less likely to negotiate excessively and more likely to work collaboratively with you throughout the process. For instance, they may be more flexible with the closing date if you need to delay it.
Streamlines the Closing Process
Getting a pre-listing inspection will make the entire closing process smoother and simpler. If the buyer’s inspection reveals an unknown defect with the house, you may have to go back to the negotiating table. Closing could be delayed by days or weeks if the buyer requests that you repair the issue before you sell the home. By getting a pre-inspection, you greatly reduce the risk of surprise issues arising during the closing process.
What Are the Downsides to a Pre-Listing Inspection?
A pre-listing inspection offers lots of benefits, but there are a few drawbacks to consider as well. Here are the downsides to getting a pre-listing inspection:
Costs
You’ll have to pay for your pre-inspection out-of-pocket, which can cost anywhere from $300 to over $1,000. If you get specialized inspections for pests, radon, asbestos, or other issues not covered in a standard inspection, you’ll be paying even more.
Pre-listing inspections cost money, but you could also lose money by failing to catch a major issue and having the sale price be negotiated down. Most sellers find the pre-inspection to offer a good return on investment.
Disclosing Problems
Disclosure laws vary by state, but sellers usually have to disclose any known issues about the house to buyers. If you didn’t get a pre-listing inspection, you may have genuinely not known about a certain issue with your house. However, once you get the report back, you’re responsible for informing buyers of the findings.
Some home sellers avoid pre-inspections because they would rather gamble on buyers discovering a problem themselves. Keep in mind, though, that a buyer’s inspection will reveal all the same information as a seller’s inspection. The condition of your home will be revealed one way or another, but a pre-inspection puts you in control.
Avoid Surprises With a Pre-Listing Inspection
As a home seller, a pre-listing inspection can save you a great deal of time, money, and stress. The pre-inspection gives you an opportunity to get ahead of your home’s problems so that you won’t be blindsided by a bad inspection report when you’ve already accepted an offer. Instead, you can deal with the issues in your own time before your house hits the market.
Pre-inspections can be especially valuable if the real estate market in your area is cooling off and you’ll be competing with other sellers. A clean inspection report gives your house a competitive edge. If you’re unsure whether a pre-listing inspection is worth the time or money, ask your real estate agent for their input. In most cases, a pre-inspection is a great option for home sellers who want to enter the market with as few unknowns as possible.