Estate and mortgageHome Inspections: Not Just for Buyers
Buying a home without having it professionally inspected first is about as
risky as engaging in a game of Russian roulette. But buyers aren"t the only
folks who can benefit from home inspections.
If you"re a seller, your knee-jerk reaction to hearing that a home
inspection for owners is a good idea might be "Why? I"m afraid the inspector will
uncover a hidden problem that will cost me thousands to repair. Or, I"ll
have to disclose the problem and subsequently bring my asking price down to
compensate the buyer for the necessary repairs."
Well, actually, there"s a good argument that owners are best served by having a home inspected prior to the sale.
Why? Because if an inspector seconds your opinion that your home is in good
condition, then you"ve got an excellent marketing tool that should help your Realtor sell your home more
quickly and for the highest price possible.
Your pre-inspection report is your negotiating tool that gives validity to
your asking price. It also places confidence in the minds of prospective
buyers, who know that they"re not jumping into uncertain territory.
Chances are good that a serious prospective buyer would hire his or her own
inspector to conduct an investigation of your house, but your report
signals to the buyer that you"re serious -- that you"re so confident in the
structural integrity of your home that you paid to have it inspected. In
addition, the prospective buyer can compare the pre-inspection report with
the findings of his or her own inspector. If everything adds up and both
reports are favorable, the buyer will be much more likely to pay full
asking price without a challenge.
Your Realtor has undoubtedly already covered with you the cosmetic
improvements -- a fresh coat of paint, simple landscaping out front, new
carpeting or perhaps even some minor home improvements such as appliance
replacement -- that will help add value to your home and boost its selling
price. The limitations of your Realtor"s knowledge lie behind the walls of
your home, where hidden problems might be present. And although your
Realtor will attempt to be as thorough as possible in his or her assessment
of your home"s quality, it"s likely that he or she will miss more subtle
problems like leaks and water damage, minor electrical problems or the
breakdown of various appliances in your homes.
Your Realtor will ask you to report any problems which could affect your
selling price, and it"s your responsibility to report any of which you are
aware, under the terms of the sellers" disclosure laws in your state. But
if a problem has been brewing behind the walls or in the foundation of your
home, and you"re unaware of its presence, the buyer could come back to
haunt you within months, waving his or her copy of the seller"s disclosure,
if the problem rears its head shortly after the transaction is complete.
Let"s say the buyer does just that -- but you protected yourself by having
a home inspection conducted before you placed your house on the market. The
inspection, performed by a professional, never uncovered such a
problem. If that"s the case, you may not be held responsible for a problem
that could have been the buyer"s own doing.
Having your home pre-inspected can also prevent any problems from
occurring at the "eleventh hour" before the transaction closes. Many
sellers have experienced last-minute hassles when a prospective buyer"s
inspection report reveals a hidden problem which could bring the entire
transaction to a screeching halt. At this point, the buyer could walk away
altogether if the problem seems like more trouble than it"s worth. If the
problem had been revealed up front buy the seller in the beginning,
however, the buyer would have been much more amenable to dealing with it --
most likely through a deduction from the selling price so that the buyer
could assume the responsibility of the repair costs.
Proactive disclosure, in many cases, is met with appreciation on the part of the prospective
buyer; and it"s not likely to kill the deal, either. If the problem is
unveiled later, however, the buyer is likely to think the seller tried to
deceive him or her, even the seller had no prior knowledge that the problem
existed.
Last, pre-inspections protect the safety of both the seller
and the buyer. A professional inspector could, in fact, uncover a potential
disaster waiting for the first opportunity to strike. Since the seller is
likely to remain in the home for a period of time during the transaction
process, the discovery of such a problem benefits everyone -- seller and
buyer. Even relatively new homes that appear to be in perfect condition can
be hiding a serious defect. And the sooner the problem is discovered, the
less expensive it is to repair.
If you"re preparing to place your home on the market, a pre-inspection is
something you can"t afford to overlook. It"s your insurance policy for a
smooth and speedy transaction.