Pre-listing Inspections

Seller inspections, sometimes referred to as pre-listing inspections, are becoming more popular because they eliminate many of the pitfalls and hassles associated with waiting to do the home inspection until a buyer is found.

Often minor deficiencies can be fixed or corrected that if left undone may have had a negative influence on the buyer's decision to place an offer on the home.

On the downside, discovery of major deficiencies may be difficult for the owner to accept. But at least having this knowledge will allow the owner to either correct the problems or be prepared to negotiate.

What about the furnace and air conditioning? How old are they and what is their condition and the last time they were serviced? These are two areas a qualified home inspector would point out.

Once the inspection has been done, the seller will have the report available for review by the potential buyers. Seller inspections are arranged and paid for by the seller, usually just before the home goes on the market but, can also be done after the house is listed, especially when the seller is concerned that they haven't received any offers.

The inspection is a win-win-win for everyone. Advantages to the seller:

• Can choose a qualified inspector rather than be at the mercy of the buyer's choice of inspector.
• Can schedule the inspections at the seller's convenience.
• Can assist the inspector during the inspection, by providing information regarding repairs and other conditions, something normally not done during a buyer's inspection.
• The report can help the seller realistically price the home if problems exist.
• The report can help the seller make the case for a higher asking price if problems don't exist or have been corrected.
• A seller inspection reveals problems ahead of time that gives the seller time to make repairs and shop for competitive contractors.
• The report might alert the seller to any immediate safety issues found, before agents and visitors tour the home.
• The report provides a third-party, unbiased opinion to offer to potential buyers.
• A seller inspection permits a clean home inspection report to be used as a marketing tool.
• The report might relieve a prospective buyer's unfounded suspicions, before they walk away.
• The report might encourage the buyer to waive the inspection contingency.
• The deal is less likely to fall apart the way they often do when a buyer's inspection unexpectedly reveals a problem at the last minute.

Advantages to the real estate agent:

• Sellers can schedule the inspections at seller's convenience with little effort on the part of agents. Reports help sellers see their homes through the eyes of a critical third-party, thus making sellers more realistic about asking price.
• Agents are alerted to any immediate safety issues found, before other agents and potential buyers tour the home.
• Repairs made ahead of time might make homes show better.
• The reports provide third-party, unbiased opinions to offer to potential buyers.
• Seller inspections eliminate buyer's remorse that sometimes occurs just after an inspection.
• Seller inspections reduce the need for negotiations and 11th-hour renegotiations.
• Seller inspections relieve the agent of having to hurriedly procure repair estimates or schedule repairs.

Advantages to the home buyer:

• The inspection is done already.
• The inspection is paid for by the seller.
• The report provides a more accurate, third-party view of the condition of the home prior to making an offer.
• A seller inspection eliminates surprise defects.
• Problems are corrected or at least acknowledged prior to making an offer on the home.
• The report might assist in acquiring financing.

As mentioned in recent articles, anyone buying or selling a home today needs to understand the importance of having a home inspection performed by a qualified home inspector and not by someone just claiming to be one or by price.

A qualified home inspector must meet certain education, experience and professional development standards each year in order to maintain their membership with a professional organization.

You should review the following websites for the requirements for membership as well as a listing of registered members: www.CAHPI.BC.CA