Should The Seller Consider Having Inspections?
Traditionally the buyer pays for the home inspection and completes those inspections after the offer is made, the price negotiated and terms agreed upon. This leads to an offer with the contingency that the home passes the appropriate inspections, and creates a risk for the seller that unexpected expenses or problems with the home could de-rail the sales contract.
It also puts the seller in a weak negotiating position with the buyer. If something comes up on the inspection the buyer can walk away from the deal leaving the seller to start over with marketing the home. This weak negotiating position can result in a lower sales price or unexpected repairs that must be completed and could potentially delay the closing.
Advantages of Seller Paid Inspections
Addresses repair needs upfront. Requesting inspections before the home is listed puts the seller in the driver’s seat. Any needed repairs or concerns on the inspection can be addressed by the seller before the home is put on the market. The seller can interview and hire their choice of contractors maintaining control over the costs of the repairs, if needed.
Could eliminate Repair Contingencies. Upfront reports that are given to the buyer before making offer, shows the buyer exactly what they are getting. They no longer need to worry about hidden problems in the home that the seller may have not disclosed. It can shorten the inspection contingency period or possibly eliminate it, making the deal more solid with less possibilities of fall thru due to condition of property.
Faster Closing. Inspections add to the time needed to evaluate the property. This can extend the closing date, especially if the buyer insists on repairs being made after the inspection has been completed.
What Inspections Are Needed?
It is important to have all inspections completed by licensed certified inspectors. These inspectors have passed proficiency tests and are recognized as an authority on homes and assessing the condition of a home or building.
Termite inspection. If the buyer completes a termite inspection and there is an issue then the seller may have to work with that company for a clearance to keep the buyer happy and assured. This puts the company in a position where they can find more repairs, or charge higher fees to get the job done. The seller may not have the opportunity to price out the job for better rates, if the buyer insists on using buyer’s inspection company.
General Home Inspection. This inspection provides a comprehensive look at the homes condition. The inspector will check the overall condition, foundation, electrical, plumbing, and other areas that impact the homes functionality. These inspections can turn up a long list of little things that can scare a buyer off and result in additional negotiations over terms and price.
Roof and chimney inspection, if applicable. The roof inspection will look at the age and condition of the roof and give the buyer an idea of how long the roof will last. A chimney inspection is critical if the home has a fireplace. A high percentage of house fires start with chimney fires. Even if the fireplace is not working, if there are structural issues with the chimney, they can be very expensive to repair and can impact the structure of the entire house.
At RealtyWeb.com we recommend that all inspections be completed by the seller before the home is listed. By providing copies to potential buyers upfront it is possible to sell the home As-Is. This speeds up the closing process and eliminates the re-negotiation of price and terms after the contract has been signed.
The seller then will not have any unexpected expenses and buyers know exactly what they are getting. These steps will also protect the seller from future liability after the closing.
At RealtyWeb.com we are dedicated to protecting our clients and have processes in place to ensure a headache free transaction with no future liability to the seller.