In the process of buying a home, the prospective buyer typically orders an inspection of the home before finalizing the purchase. On the other hand, it’s often advantageous for homeowners to order an inspection of their home before putting it on the market. This process, called a pre-listing inspection, serves to put the seller in control of the negotiation process and gives buyers a clear sense of what they’re purchasing. Learn how and why it might be beneficial to complete a pre-inspection of a property.
What Does a Pre-Selling Inspection Entail?
A pre-selling inspection contains all the essential elements of a buyer’s inspection – the only difference is who is ordering it. Typically, a seller will ask for a home inspection before the home ever hits the market, which often leads to increased transparency. The scope of what the inspection covers is the same. Like a buyer’s inspection, the pre-list inspection focuses on all the essential elements of the home’s functioning – the heating, cooling, plumbing, electrical systems, roof, siding, structural integrity, doors, windows, and more.
While the inspection helps provide transparency to the buyer, it also keeps the seller from being caught off-guard by any issues their home may have. This provides better negotiating power and leverage before a real estate transaction occurs, instead of causing an issue during the transaction. It also provides the seller ample opportunity to fix any issues that might affect the asking price.
Advantages for Agents
Pre-listing inspections benefit sellers and often provide perks to the listing agent such as a better commission when the transaction closes.
Buyers tend to overestimate what a problem will cost to fix and lower their offer accordingly. For example, a defect that costs $500 to fix may lead to buyers lowering their asking price by $2000 or more. By suggesting a pre-listing inspection, realtors and sellers can receive a significant return on investment when a transaction closes for a higher asking price.
Pre-listing inspections helps everyone involved in a real estate transaction by providing transparency to the buyer, negotiating leverage to the seller, a possible higher commission to the realtor and more closed deals. All sellers and realtors should consider scheduling one before putting a home on the market.
