Sellers Ready for Negotiation With Their Own Inspections
March 16, 2021
Typically, home sellers wait for a potential buyer to make an offer and then allow the buyer to pay for an inspection of the home before the transaction closes. But that could cause a lengthier closing process and negotiations over repair costs. As such, some home sellers are considering a pre-listing home inspection to try to resolve any potential hang-ups before they list that could hamper their closing. This can help many sellers who have tight deadlines to meet if they’re purchasing a new property themselves.
Home sellers who do a pre-listing inspection will have a home inspector review their home and suggest any repairs that may need to be made in advance.
“With a home inspection, you will have a much better understanding of any flaws or damage your house has and can price accordingly,” Redfin notes on its blog. “Maybe the house needs a new garage door, or there are issues with leaky pipes. If you decide not to fix the issues revealed during a pre-listing inspection, you can factor the repair costs into the asking price of the home.”
Sellers who have a pre-listing inspection need to share the information with the buyers, typically on the disclosure form before they list that indicates their knowledge of any potential issues with the home. Sharing the full pre-listing inspection report with buyers will give more information about the home.
Buyers also may decide to waive the home inspection contingency in their offer. This is growing more commonplace, regardless of a pre-listing inspection. This summer, about 13% of Redfin real estate professionals reported they wrote offers where their buyers waived the inspection contingency in order to win a bidding war.
Real estate professionals who suggest pre-listing inspections could help accelerate the transaction and avoid last-minute negotiations over repairs. “If the seller needs a quick timeline to close or is putting in an offer that will be contingent and with tight deadlines, a pre-listing inspection may help them stay a few steps ahead in the process,” Angelica Olmsted, a broker associate with Team Denver Homes of RE/MAX Professionals, told Bankrate.com.
But sellers will be on the hook for the cost of the inspection, which typically costs between $300 and $450, depending on the home's size, age, and location.
Updated: June 22, 2021