The dreadful home inspection…No matter how new your home is or how well you have maintained it, it seems like there is always something that comes up in that inspection report. And we have all heard of the sales that fall through after inspections are done. So should you get your home inspected before putting it on the market? Here are 3 options to consider:
Option 1 – Pay for a pre-inspection before putting your home on the market
Sometimes it can pay off to have a pre-inspection done. (Home inspections typically cost $350-$500). Here are some reasons why:
- It sets your home apart from others on the market – your agent can tout the fact that you have a clean home inspection and potential buyers can feel a peace of mind and confidence about putting in an offer on your property.
- It can save you money and time – if you know about issues ahead of time, you can go ahead and get them fixed before you list. If you didn’t have an inspection ahead of time and the buyers find the issues during their inspection, they will try to negotiate a lower price, make you fix it and potentially delay closing or even cancel the contract altogether…which means you have to start all over again.
- You don’t have to worry about disclosing known issues – If you know of issues in your home such as a leaky roof, you are required to disclose that information to potential buyers. This can either deter people from making an offer or they will factor it in and offer less than you would normally get. Usually buyers will guess repair pricing on the high side to be safe. If you get ahead of the issue and repair before you list your home, you don’t have to worry about disclosing the issue (as it is not an issue anymore!) and you can highlight the fact that you just got for example, a new roof.
- You can take the reins - If the item is a major repair and it is just not worth the money up front and disruption to your life you can at least get ahead of the problem. You can get estimates to get the problem fixed (so the buyers don’t have to guess or be worried about the price of the repair) and adjust your sales price accordingly. Now you can market that your home pricing already includes fixing that issue. This also gives you a chance to go ahead and put it out there and not worry about losing the buyer when they find it and freak out after their inspection.
Option 2 – Wait for the buyer to get an inspection
Don’t want to get a pre-inspection? Here are some reasons to wait for the buyer to do it:
- The buyer will most likely get a home inspection anyway – Even if you did a home inspection, most buyers will still get their inspector to take a look during their repair period to ensure there are no other issues they should be aware of.
- You save the cost of the inspection – If you feel confident there are no issues in your home, you might not want to shell out the dough to get a pre-inspection.
- Put the buyer in the drivers seat – After the inspection, the buyer will submit the repair requests for the items they feel need to be repaired. Here, the buyers decide what is important to them instead of you having to guess what items you should fix ahead of time.
Option 3 – Sell “As-Is”
- You know your home has issues and you don’t want to deal with it – Pricing your home and marketing “As-Is” will take the stress off you and alert potential buyers that there are no more negotiations after the contract. Please note, buyers still have the right to do an inspection and can walk away even if you do market it “As-Is”.
There is no perfect answer as to whether or not to get a pre-inspection. But the way we look at it, the more you know ahead of time, the better the chance to maximize your sales price and create a smooth path from contract to closing.
Have more questions about buying or selling? CONTACT THE HEREDA TEAM