A home inspection can cost around $500 but real estate experts think it might be worthwhile for sellers to invest this money prior to listing. They point out it's an excellent way of holding on to the control over the sale.
The article in Fox Business points out that whenever a home buyer pays for an inspection, to a certain extent they do gain more control over the direction of the sale, whereas if the inspection has been carried out prior to listing then the seller will be in a much better position. In addition, having a home inspection before putting a property on the market is a way of identifying major problems that could affect a sale. It means the seller can carry out any repairs, or if they're not willing to do so can adjust the price to reflect any issues.
One thing worth taking into consideration is that doing the repairs ahead of listing the property can be much cheaper than trying to negotiate during the sale. At this stage the buyer may want to bring in a licensed contractor which could prove to be more costly. Another real estate expert thinks it may be worthwhile having a roof inspection, as repairs to roofing or replacement roofs can prove to be costly.
Even though a home inspection may seem like a great idea there are certain situations where it's simply not necessary. If your house is located in a competitive real estate market, or if it is already quite new then the home inspection could be a waste of money. A home that receives multiple bids is unlikely to be so affected by a less than favorable home inspection. Some buyers will simply take the house as it is without requiring any costly repairs.
Anyone who is thinking of selling their house and who is interested in getting a home inspection prior to listing may be able to benefit from a reduced price, or could be able to purchase a short report through their real estate agents connections with home inspectors. Real estate agents are often able to put a lot of business through to home inspectors who in turn may be willing to carry out home inspections at reduced rates for the sake of the relationship.
A pre-listing home inspection and a buyers pre-purchase home inspection are not the same thing. Conducting an inspection for a home owner who already knows the property can reduce the inspection process and subsequently the cost. The seller only needs to know what's broken, but the buyer expects much more from the inspection. The inspector is only concerned about the present condition of the property, not the buyers expectations of the property.
Contingencies on real estate contracts are generally 10 days.
Most contracts require the property to be "in working order". If something is broken or does not operate as intended, it requires repair.
Finding problems during a buyers pre-purchase inspection slams on the emergency brake to the escrow process. If the issues cannot be resolved in the contingency period, the deal is likely to go south. These deficiencies also result in a significant reduction in the contract price (even if the repairs are made).
It is important to get a good pre-listing inspection home inspector that understands the real estate process and that they're not required to concern themselves with blemishes and issues that may occur in the future that is not a concern of the seller.