Homeowners who’re looking to secure a quick sale might want to take it upon themselves to do a pre-listing home inspection with the aim of speeding up the sales process.
Typically, the onus has always been on the buyer to pay for the home inspection once their offer has been accepted, but that can lead to a longer wait before closing, and also negotiations over the cost of repairs if any issues with the home are surfaced. As such, some sellers who may have tight deadlines because they’re buying another property themselves, might do well to address the home inspection before they list their home for sale.
Sellers that opt for a pre-listing inspection will be informed of any issues with their home that might impact its value. They can then fix the problem themselves or offer an appropriate discount on their home.
“With a home inspection, you will have a much better understanding of any flaws or damage your house has and can price accordingly,” Redfin said in a recent blog post. “Maybe the house needs a new garage door, or there are issues with leaky pipes. If you decide not to fix the issues revealed during a pre-listing inspection, you can factor the repair costs into the asking price of the home.”
Redin advises sellers that have a pre-listing inspection performed can share its findings on a disclosure form that’s designed to indicate their knowledge of any potential issues with the home.
Pre-listing inspections are being advised by some real estate agents to help clients accelerate transactions and avoid last minute negotiations over repair costs.
“If the seller needs a quick timeline to close or is putting in an offer that will be contingent and with tight deadlines, a pre-listing inspection may help them stay a few steps ahead in the process,” said Angelica Olmsted, a broker associate with Team Denver Homes of RE/MAX Professionals, in a January interview with Bankrate.com.
A pre-listing inspection may not be advisable for everyone though. Sellers will of course have to pay for the home inspection themselves, and that can cost around $300 to $450, depending on the size of the home, its age, and its location.
Sellers should also be aware that many buyers are deciding to waive the home inspection contingency within their offers to make them stand out more in bidding wars. A lot of homes these days are subject to multiple bids that can go way above the listing price due to a nationwide shortage of homes for sale. Due to this, waiving the home inspection has emerged as a common tactic among buyers.
Redfin, for example, reported that 13% of its real estate professionals made bids on behalf of their clients that saw the inspection contingency waived. And so sellers who aren’t in a rush may stand to save quite a bit of money if they decide not to do a pre-listing inspection, as any problems that do appear would then be the responsibility of whoever bought the home.