How Pre-Listing Inspections Can Benefit Sellers

In a perfect world the home inspections you order as a real estate agent would all come back perfect and you can move on to a smooth closing. Wouldn’t that be nice? The reality is: no home is perfect no matter how great of shape it may appear to be in. Whether it’s a vintage bungalow in a mature neighborhood or a state-of-the art smart home in a new subdivision, every home is subject to wear and tear caused by people or the elements and things need to be serviced, replaced or repaired. There’s always something. However, there’s always someone involved in a real estate transaction that’s surprised when a home doesn’t receive a 100% clean inspection report. This can botch up the entire deal and even lead to legal dispute. That’s why a full disclosure pre-listing (or seller’s) inspection is something you don’t want to skimp on. 

Transparency

Transparency in any business dealing is always best. An honest and transparent pre-listing inspection reduces liability and sets realistic expectations for everyone involved. All issues are disclosed and dealt with and it puts you and your seller in control. And, since the first offer (and subsequent offers) are based on available information, total transparency pays off in faster and more hassle-free sales with no last minute glitches.

Peace Of Mind

Even though there may be issues, a pre-listing inspection will provide some peace of mind for everyone involved. For example: a common home condition in Texas markets is foundation settlement. However, with a pre-listing home inspection, this is out in the open. The seller can opt to get it repaired on their terms. It then becomes a non-issue and adds value to the home. Or, they can opt not repair it and adjust the price of the home for the buyer. Either way, the seller is in control. 

Reduce Liability

If you know of a problem with a home, deal with it ASAP. Issues will eventually be discovered by the home inspectors and will have to be disclosed and addressed. When home deficiencies are not dealt with before closing, they can come around to haunt you and/or your client in the form of a lawsuit. Having a third party inspector do a pre-listing inspection will greatly reduce the risk of potential liability from anything that might come up after closing.  

What’s Missing

No one wants to move into a new home and discover that they’re missing items that they expected to be there such as a lighting fixture or refrigerator. Maybe your seller was planning to take some items with them. If so, this should be noted in a sellers disclosure. Texas law requires that sellers disclose an extensive list of what comes with the house including appliances, rain gutters, water heaters, heating and air conditioning units and exhaust fans.

Negotiating Tool

The seller usually pays for a pre-listing inspection; however some agents will offer to do so as an added value. Other agents use it as a tool to set seller expectations and manage listings with issues. This helps gauge a seller’s commitment to sell. If major issues are discovered that the seller doesn’t want to fix or make concessions for, then the agent can possibly negotiate with the buyer’s agent or opt to discontinue working with a reluctant seller

RealShield Insurance can provide you with E&O and General Liability Insurance to protect your real estate business. Go to RealShield Insurance’s website.