Most people know the process of buying a home involves a home inspection prior to closing. Typically in Missouri and Kansas this is done AFTER we have a deal that both buyer and seller have agreed upon and it’s typically done at the Buyer’s expense.
I tell my clients that we have TWO rounds of negotiation: 1) the purchase price and contingencies like closing costs, warranties etc; 2) Inspection negotiation
*** SO LET’S FLIP THIS IDEA ***
What if a SELLER did inspections on their own homePRIOR to even listing the house!
“But Jay, that is going to cost me a few hundred dollars and then show all the problems in our home to the buyer! Why would I do that?”
Let me give you a real-world example:
During my listing consultation, I always go over a PRE-inspection with my sellers and open their minds to that option. A few months ago, one of my sellers took me up on it and had an inspection done prior to putting my sign in the yard. Here’s how it went:
Cost to sellers: $300. Results: Found about $2,200 worth of repairs on about a dozen fairly minor items. (We got bids to complete EVERYTHING so the Buyers will know potential costs involved). Sellers contracted a handy man to repair the most important items (plumbing, electrical).
As part of the 3-ring binder I put in the kitchen for buyers to look at, I included the inspection report as well as the receipt for repairs.
A week into the listing being live, we received an offer. After reviewing our inspection and repairs, the Buyers did not perform their own inspections! Deal closed 28 days later and everyone was happy.
So what just happened??
1) Sellers eliminated the anxiety of “what will the buyers find during inspections and how much will it cost me?”
2) Buyers know BEFORE WRITING A CONTRACT more about the home and also eliminate the “what will we find wrong during inspections?”
3) Buyers saved $300-500 out of their own pocket to re-do inspections, so may have picked our home over others for that savings alone.
4) Sellers provided UP FRONT information about their home, creating a feeling of “everything is on the table” and we aren’t hiding anything from you.
5) Sellers AND Buyers close faster by eliminating the Inspection Period and potential delays involved with that process
6) As a Seller’s Agent I can properly advise my clients better with this information ahead of time, and formulate a strategy with a much further vision of the end result.
I wish more of my Sellers would consider this step as part of their listing process. Getting all the cards on the table of one of the biggest deals of a lifetime seems like a wise strategy. Remember, a good real estate consultant will help clients think BIGGER and explore thoughts that may be contrary to what has been heard, but always looking out for our clients to get them the most satisfaction from their deal!