Home Inspections

The residential home inspection is most commonly something a potential buyer arranges as a protection against hidden, undisclosed costs. But the home inspection can also be a tool the home seller uses to realize savings. Sellers often spend money up front for fix-up chores and repairs, anticipating that this will facilitate the sale and that they will get some or all of their expenses back upon closing. This article will show that the home inspection can be treated in much the same way.

What a home inspection can do for the seller is give him a leg up on his competition. Especially in a buyer's market such as we have today, any advantage is golden. Listing agents will tell you that the better a house is staged, the more it attracts potential buyers and the greater the chance to receive an offer at or near the asking price. In some cases, staging one's home isn't practical, such as when the seller is physically unable to do it, cannot afford even fix-up costs, or intentionally markets the house as a fixer-upper. If so, taking the trouble to contract one's own home inspection will still go a long way towards adding value in the eyes of a buyer.

Sellers should understand that, despite stronger disclosure rules nowadays, buyers are warier than they used to be. It is rare for a buyer not to order a home inspection, regardless of appearances. The seller should anticipate the buyer changing his mind and terminating the purchase agreement. Alternatively, he may request a (further) reduction in price and/or the completion of certain repairs prior to closing.

A great strategy to adopt in trying to avoid such disappointment and back-and-forth is having the house inspected before listing it for sale. This thorough examination, based on checklists and Standards of Practice, brings a fresh set of eyes to the building's condition. The inspection report lists items needing attention, such as safety issues, major defects requiring repair, minor problems that warrant monitoring and/or further evaluation, and conditions that are conducive to infestation of wood-destroying organisms.

It's best if the seller looks at the report objectively and unemotionally to determine what are likely to be important issues to the average buyer. He corrects or arranges to correct at least the highest priority ones, and only then puts his house on the market. He displays the inspection report for all to see, along with proof of corresponding repairs and their dates. Agents will eat this up and point out to their clients how forthright and candid the seller is.

What are the expected results? The buyer's worries about hidden repair costs are assuaged, perhaps to the point of his not bothering to have a separate home inspection. The buyer sees value and is more willing to pay full asking price. In fact, chances increase of attracting more than one buyer and seeing a bidding war. All because the seller took the time to walk in the buyer's shoes and to give him what he wanted.

In all likelihood, the seller recoups more than he spends, sells his home quickly, and shares in more harmonious relationships among all involved parties. The upshot is that the home inspection has brought savings to the seller in terms of money and reduction in stress.