Typically, a home inspection is conducted during the sale of a home after an offer is accepted. The buyer is responsible for hiring an inspector to look through the property and make a note of any issues with the plumbing, electricity, structure, and general condition of the home. This will allow both sides to negotiate repairs that need to be made before finalizing the transaction.
However, many sellers choose to conduct a home inspection before selling, giving them a head start on the sales process. Unforeseen problems can cost sellers extra time and money. Feel confident about whether or not to do a pre-inspection by reading through this guide curated by The Baran Group.
PROS OF INSPECTION BEFORE SELLING
BE FOREWARNED OF REPAIRS AND SIGNIFICANT ISSUES
While it may seem scary to find things wrong with your Geneva home, being informed is a significant advantage before selling. By learning the issues, you have the opportunity to fix them before putting your home on the market, which can save time and money.
Commonly, when a buyer orders their own inspection and finds issues, they will negotiate a lesser sale price to account for the repairs that need to be completed. When sellers know about problems beforehand, they can be mended to keep the profitability of their sales price intact. Also, if there are simple fixes, handy homeowners can personally tackle the issues rather than hiring a professional.
EASIER TO PRICE THE HOME APPROPRIATELY
Real estate agents will run a comparative market analysis to suggest a proper price to their seller clients. This report will compare your home to similar properties and determine a price that will be competitive in the current market but also to gain a profit. Unfortunately, since most home inspections are completed after this analysis, real estate agents cannot account for any issues an inspector finds in the home.
By doing a home inspection, real estate agents will have more information about the property and be able to account for repair expenses. Any repairs completed before selling can be added to the home’s sales price. Or, if sellers do not wish to do repairs, it can also be accounted for in the sales price. This gives sellers the knowledge to price their homes appropriately in a competitive market.
ABILITY TO CLOSE A SALE QUICKER
The entirety of the sales process can take anywhere from a few days to a few months, depending on market trends. While many buyers will still order their own inspection after their offer is accepted, conducting an inspection before the sale can speed up the process. It is especially beneficial if you have a specific moving timeline to adhere to.
Ordering an inspection will keep you apprised of issues and give you the time to address them ahead of time. That way, when the buyer arranges their assessment, there shouldn’t be any surprises that hold up the rest of the transaction. In addition, buyers can waive their inspection if they’re eager to purchase your Geneva home for sale, which could expedite the process further.
CONS OF INSPECTION BEFORE SELLING
SPENDING EXTRA MONEY
One of the downfalls of getting a pre-inspection is incurring additional expenses. Hiring an inspector can typically cost anywhere from $200 to $500, which is money that is unavoidable if you opt to inspect prior to selling. Also, if the inspection report comes back with significant repairs and issues, you’ll either have to get things fixed before selling or essentially deduct them from the home’s sales price.
Minor items like a hole in the wall may be relatively inexpensive, but others like plumbing, electrical, or roofing issues can strain your wallet. In addition, items that you deem necessary to fix may be optional to certain buyers. This means you will spend money and time repairing things the buyer would not have requested otherwise.
DISCLOSING NEGATIVE FINDINGS TO BUYERS
Depending on your state’s laws and regulations, sellers are sometimes required to disclose issues with the property to a buyer. By getting an inspection before selling, you’ll be aware of the known problems and obligated to share them with the buyer. This could affect your negotiation power during the sales transaction.
If you do not have the money to fix the inspector’s findings, these issues will have to be shared and may affect the price you can get for your property. However, if you have the money to fix these issues, there may be less to worry about. Although a re-inspection may reveal that the problems were not repaired correctly, they must be remedied before moving forward.
ANOTHER INSPECTION MAY REVEAL FURTHER ISSUES
Regardless of whether you decide to get a pre-inspection, odds are the buyer will conduct their own inspection of the home before purchase. This may reveal other items your inspector should have noticed, negating the goal of irradicating issues beforehand.
Although you could have fixed your inspector’s issues, you will now have to renegotiate with the buyers to include repairing any new items. This will cost additional time and money and can delay the purchase process. Sometimes, the buyer may even decide to pass on the transaction altogether.
KEY TAKEAWAYS ABOUT HOME INSPECTIONS
Before deciding on whether to get a home inspection before the sale of your home, take a very close look at your property to help you weigh the pros and cons. A pre-listing inspection is an excellent idea for owners with older homes or who have not done significant repairs since moving in. It is also beneficial if you have the financial means to fix any known issues and have an extended timeline to complete them.
A pre-inspection might not be necessary if you have a newer home and have recently completed renovations, especially if you hired a professional to execute repairs. Also, if you do not have the funds to fix problems that the inspector finds, it wouldn’t be advantageous to move forward with an inspection. This may cause you to lose money in the long run.
HOME INSPECTION FREQUENTLY ASKED QUESTIONS
WHAT REPAIRS ARE LEGALLY REQUIRED AFTER A HOME INSPECTION?
Repairs that concern a homeowner’s safety are mandatory after a home inspection. These usually include structural and electric damage, smoke and radon detectors, and unpermitted repairs. Also, insurance and lending institutions may require items to be remedied. However, the law does not obligate who must make these repairs, so buyers and sellers must negotiate to determine who will be responsible.
HOW CAN I PREPARE MY HOME FOR AN INSPECTION?
Sellers can prepare for a home inspection by providing easy access to items that inspectors need to review, such as attics, basements, crawl spaces, heating/cooling systems, fuse boxes, water heaters, etc. If the inspector cannot reach these items, it will be noted on the inspection report and could raise concerns for the buyer.
You must also have your utilities turned on, regardless if the property is vacant, so inspectors can test whether everything is working correctly. Before the inspector arrives, sellers can verify things work by flushing toilets, testing light sockets, running appliances, testing smoke detectors, etc.
DECIDE WHETHER A PRE-LISTING INSPECTION IS RIGHT FOR YOU
There is much to consider before conducting a pre-listing inspection of your home. While there are benefits and downfalls to inspection before selling, as the property owner, your decision will depend on the current condition of your home, financial means, and the local real estate market. Consulting expert real estate professionals, like The Baran Group, can assist in making an educated decision about whether an inspection is right for you. Contact them today to discuss the pros and cons of pre-inspection for your Geneva real estate.