Nothing is wrong with my house! – Anonymous Homeowner Before the Inspection
Would you like to identify potential deal-killers in advance? Want to reduce hidden costs? How many years has it been since your home was professionally inspected?
For sellers, a unexpected systems failure could costs thousands of dollars or kill a purchase contract. Even homes that are just a few years old are not immune. To avoid issues, we recommend having your home pre-inspected and repaired prior to placing the home on the market. We are not asking you to pay for a buyer’s inspection, but we are asking you consider this powerful marketing and negotiating tool. The chasm between what people are willing to pay for a home in mint condition and a home that needs work is growing daily.
Marketing Tool
We will use the inspection report and repair receipts as a marketing tool to differentiate your home. The documentation will be uploaded to the MLS for Realtors to see and the pre-inspection will be referenced in advertising.
Negotiate From Strength
When an offer does arrive, would you like to have some idea about your repair obligations in advance? Many homeowners make the mistake of negotiating their bottom line without knowing the true costs of their repair obligations. A pre-inspection can reduce uncertainty and allow you to negotiate from a position of strength.
Certified Pre-Owned Example
If you were in the market for a $30,000 used car, would you be willing to pay $3000 more for a Certified Pre-Owned Car? Imagine you were down to two cars in the selection process: one car that had a CarFax report and been through a 100 point manufacturer inspection checklist; and a second car that was as a mystery from CraigsList with noticeable imperfections. Would you be willing to pay $3000 (10%) more for the certified car in mint condition?
Reduce Costs
Will it cost more or less to wait until the buyer inspects the home and asks for repairs? Is it easier and less expensive to make repairs without the added pressure of intense buyer scrutiny? Would you like to be the only one controlling the selection of the repair vendor, the scope of the work, and the timing of the job?
Reduce Repair Requests
What are the odds that the buyer’s inspector will include questionable or borderline items within the inspection report? What are the chances a buyer will ask for something to be repaired or replaced because the inspector notes that there many be a problem at some point in the future? How can you avoid having to fix items that may fall into gray areas? If you have a pre-inspection, then the buyer’s inspector will your pre-inspection report in hand while they examine the home. We have found that inspectors are less likely to note questionable items if they conflict with another report, and if they must defend each item.
Reduce Cancellations
We have seen buyers use the inspection contingency as an excuse to cancel the contract, though the underlying culprit may have been buyer’s remorse or another home. Whether the contract requires repairs or allows the buyer to cancel (AS-IS), a seller may feel obligated to make repairs to avoid cancellation of the contract. Time, financial and logistical concerns may pressure a seller to agree to a reduced price or excessive repairs. Our team and system have a plan to reduce these risks and protect your interests.
Reduce Conflicts
Having been through the inspection process thousands of times, we have noticed that many buyers tend to fixate on a particular inspection issue and imagine there is some huge deficiency with the entire home. We have also seen highly charged emotional disagreements over very minor repair items that may cost less than a couple hundred dollars. When it comes to repair costs, buyers are bad estimators. They tend to “horbalize”or assume the worst. For buyers, the possibility of such expenses and hassles can lead to doubts about the transaction. The buyer’s agent may use the inspection report to negotiate $3-$4 off of the purchase price for every $1 in actual repair costs.
Buying and selling a home can be a challenging enough experience without unexpected repair issues factoring into the equation. Making repairs before placing your home on the market saves money and worries. Contact Annette, Doug or Dale Bohannon of Coldwell Banker Residential Real Estate about using pre-inspections to sell for top dollar.
