It is an exciting time when you are putting your house up for sale. Maybe you have a new job offer in another city or downsizing because the kids are grown and moved out. Perhaps you are moving up from a starter home to a bigger home with your growing family. Whatever the case may be, it can also be a stressful time. One way to get rid of some of the stress is to have a Pre-Listing Inspection. You know that most people have a home inspection, but did you know that there are benefits for the seller having a Pre-Listing inspection?
What are the benefits of a Pre-Listing inspection? Knowledge of the condition of the home before the home hits the market, Pre-Listing inspection homes sell faster, a realtor can justify the seller’s asking price, and there is less room for negotiations.
Let’s take a look at why this is important, what is a Pre-Listing inspection vs. a buyer’s inspection, what is checked, the benefits of a Pre-Listing inspection, as well as the cons of a Pre-Listing inspection and other information.
Why This is Important
Not every seller orders a Pre-Listing inspection, because it does cost money. Some sellers feel they would rather take their chances. However, if you sense that something may come up in a home inspection, you may want to order the Pre-Listing inspection. This will allow you to decide if you want to take care of it or have it in the write up for the home. Sometimes a buyer may be fine with the issue, may want to negotiate, or may decide to walk away.
Pre-Listing Inspection vs. Buyer’s Inspection
A Pre-Listing inspection is paid for by the seller and done before the home hits the housing market. While a buyer’s inspection is after an offer is made on a home, the buyer pays for it and finds out if there are any issues that need fixing.
What is Checked in a Pre-listing Inspection
A Pre-Listing inspection checks the major systems, mechanicals, windows, and doors. It also looks for signs of water damage, mold, and cracks in the home and foundation.
Benefits of a Pre-Listing Inspection
Knowledge of the Condition of the Home Before it Hits the Market
When a house goes up for sale and an offer is made, most buyers will pay for a home inspection. They want to make sure they are getting a good home as it is a large investment. But did you know that as the seller, you don’t get to see the home inspection report? Having a Pre-Listing inspection lets you know the condition of the home. This also alleviates negotiations when you already know what is wrong in the home.
Choose What to Repair and Your Repair Person
It makes sense to have the Pre-Listing inspection so you as the seller know about the condition of your home. It also allows you to choose what you want to repair and who to use as a repair person if you decide to have it fixed. If you choose not to have it fixed, then you have time to disclose the information in the addendum. This allows potential buyers to be aware.
Pre-Listing Inspection Homes Sell Faster
Homes that have a Pre-Listing inspection tend to sell faster. This is because many buyers see it as you have done a lot of the work for them already and they are aware of any issues. In a competitive buyers market, this works well as the buyer sees that there is a better chance of the deal going through. This will be good for the buyer as they will know what is going on in the home and there won’t be any surprises. This also helps transactions go smoother. Those who need faster closings may see this as an advantage as well.
Benefit of a Pre-Listing Inspection: The Realtor Can Justify a Sellers Price
A Pre-Listing Inspection can help a realtor justify a seller’s price. In addition, buyers also will like when a seller discloses any issues so they can be factored into offers. The Pre-Listing inspection also may help in the sale of the home. All the issues, if there are any, are presented so the seller can sell the house for what it is worth.
Less Room for Negotiations is a Benefit of a Pre-Listing Inspection
A seller will find it less stressful when they have a Pre-Listing inspection as there will be less room for negotiations from the buyer. This is because there is no guessing as to the condition of the home as it is right there in the paperwork.
Cons for Having a Pre-Listing Inspection
1. Seller Pays for Pre-Listing Inspection and Additional Inspections May Be Needed
Unfortunately, the seller pays for the Pre-Listing inspection. As mentioned above, it ranges in price from $350-$1000 and is an expense while you are trying to sell the home. In addition, sometimes you may need to have additional inspections such as:
Testing for Radon
Radon is an odorless and colorless gas that exists in the air we breathe in. Outside is not where it hurts us but inside a home or building. Radon is a radioactive gas that results from the natural decay of uranium and comes up from the soil and rocks in the ground. Some homes only need a radon test for 2 days, while some require it for 90 days. You will need to find out if you need a radon test for your home so you can plan accordingly.
If your property is one of over 13,000,000 that has a well on it, you will need a well inspection. Hopefully, you would know by now if the water wasn’t clean, but just to be sure, a well inspection (costs about $150 or more) should be done.
If there is reason to believe you may have mold in the home, ordering a mold test is a good idea. A sample test is done and sent to a lab and the mold results are known about three days later.
If your home was built before 1978, there is a good chance it may have lead paint. There is an easy test you can do to see if there is lead paint:
Some States Require Full Disclosure
Depending on your state, there may be laws about full disclosure. This means that if you know of an issue or an issue comes up on the Pre-Listing inspection report, you may be required to disclose it to potential buyers. However, if there is no law, you will want to consider disclosing the information as it is the right thing to do. Check out this site and look up your state for laws relating to disclosure.
You May Have Two Home Inspections
If you have a Pre-Listing inspection, you need to be at the home for the inspection. Again, if there is a home inspection paid for by the buyer, there will be a second inspection. However, you may really like the home inspector who does the Pre-Listing inspection and have someone to refer the buyer to who knows the home.
Cost of a Pre-Listing Inspection
A Pre-Listing inspection costs about the same that a buyer pays for a home inspection. The range is about $350-$1000 and the price varies due to location, square footage, age, and other factors.
A Pre-Listing inspection is a great idea for peace of mind for you and the future buyer. It can help a sale go through quicker as any issues have been found before the closing date. Even though not all sellers decide to do this, it is a great idea and something to think about. Have questions about a Pre-Listing inspection or need to hire a professional to conduct one for you? Leave us a reply below so we can help!