Why Our Annapolis Area Home Sellers Are Opting For Pre-Inspections
May 13th, 2008 Categories: Buyers, Sellers
In This Twitchy, Competitive Real Estate Market, You Need Every Advantage You Can Get. Pre-Inspecting Gives You a Clear Edge
Last night we listed a home in one of the area’s choice subdivisions, the sort of lovely home any agent would be proud to market and sell. The owners have wisely chosen to follow our suggestion and have a pre-inspection done - that is, an inspection prior to getting a contract on the home.
Why now, you may ask. Isn’t that the buyer’s responsibility, once an offer has been accepted?
Indeed, it is. At least that’s the way it’s typically done. But this is no typical market and sellers need to do everything they can, and as early as they can, to pave the way for a smooth settlement. Thus, a pre-inspection.
A Pre-Inspection Identifies Potential Problems Early, Takes Pressure Off the Seller and Reassures a Buyer
A lot of home sales fall apart during the inspection process, especially these days when buyer demands are, well, pretty demanding.
For example: seller accepts what he feels is only a so-so offer - this, after several price reductions already. The buyer orders an inspection and several problems are uncovered. The buyer submits a list of items to the seller that he wants fixed - that, or a $10,000 credit to fix them after the buyer moves in. The buyer needs to settle in 30 days.
Seller is in a tough spot. He’s already been beaten up on price, so he thinks, and now he’s feeling downright abused. He’ll be flat out busy for the next 30 days - packing his household, moving his family, and starting a new job. No way will he have the time to find contractors and get the needed work done - this, even though he’s pretty certain he could have the work done for about half the buyer’s figure.
To make matters worse, the buyer is now dropping little hints that there are a couple of other homes out there that he’s had his eye on and he’s really in no mood to dicker. What’s it gonna be, Mr. Seller?
The Bottom Line on Pre-Inspections
If that situation sounds like a nightmare, I can assure you that it - or some permutation of it - happens all the time in this business. And in the end, somebody almost always feels cheated.
So consider a pre-inspection. Says Walter Clews, President of AmeriSpec Maryland - one of the inspection companies we recommend to our clients - “In this competitive market, you can’t leave anything to chance. If you uncover potential problems ahead of time and address them, you won’t raise red flags with buyers. And you’ll demonstrate clear pride of ownership.” Clews reiterates that a pre-inspection will:
- Help identify problems before a buyer sees the property.
- Likely help you attract offers closer to the asking price.
- Allow you to correct problems early and shop for the best price on repairs.
- Help create a good faith atmosphere for all parties.
- Minimize the opportunity for renegotiation.
Bonus: the buyer gets a heavily discounted rate on the reinspection (with AmeriSpec, at least.)
Call if you have any questions about a pre-inspection. I’ll be happy to fill you in.
Ken,
You are right on the money. This kind of good faith effort by the seller is so important in today’s market.
I would think too that it could help with a property that is ‘visually challenged’ - a buyer would know they were getting sound structure and they could add the bells and whistles later.
You are always a good read . . .
Michael
Thanks, Michael - you’re so kind. We’re very excited to be offering this approach/strategy to our sellers. I think buyers will really respond well, and I know it will make our listings all the more appealing.