Seller Inspections: Streamlining Real Estate Transactions
by Nick Gromicko
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. Home inspectors should consider offering seller inspections and marketing this service to local listing agents.
Advantages to the seller:
- 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.
- Agents can recommend certified NACHI inspectors 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 renegotiations.
- 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 renegotiations.
- 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.
Common myths about seller inspections:
Q. Don't seller inspections kill deals by forcing sellers to disclose defects they otherwise wouldn't have known about?
A. Any defect that is material enough to kill a real estate transaction is likely going to be uncovered eventually anyway. It is best to discover the problem ahead of time, before it can kill the deal.
Q. A newer home in good condition doesn't need an inspection anyway. Why should the seller have one done?
A. Unlike real estate agents whose job it is to market properties for their sellers, inspectors produce objective reports. If the property is truly in great shape the inspection report becomes a pseudo marketing piece with the added benefit of having been generated by an impartial party.
In summary, seller inspections streamline the real estate sales process for all parties involved. NACHI 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 speak to a NACHI certified home inspector in your neighborhood who specializes in seller (pre-listing) inspections click the Pre-Listing box at www.InspectorLocator.com.