Home Inspections…Again?!

I’ve mentioned this in another article or two, but one of the most important things you can do as a Realtor is to insist that your seller have a pre-listing home inspection.

We usually focus on staging, curb appeal, and pricing strategies when advising our sellers. But one rarely used strategy in my area that can significantly impact the selling process is a pre-listing home inspection.

I first found the appeal of pre-listing inspections when selling relocation company homes years ago. They wanted a smooth transaction. So did I.

Illustration by Ahmed Hossam.

While home inspections are usually associated with buyers, I found from these pre-listing inspections that sellers benefit immensely by hiring an inspector before listing their property. This approach can prevent surprises, increase buyer confidence, and streamline the entire selling process.

It makes things more pleasant for everyone!

One of the most significant advantages of a pre-listing home inspection is the ability to identify and address potential issues before they become deal-breakers. As you know, many sales fall through because a buyer's inspection uncovers problems that the seller was unaware of, leading to renegotiations or even contract cancellations.

By inspecting the home in advance, sellers can, at the very least, disclose those items to all buyers before a contract is signed.

Most contracts state that any defect previously disclosed can’t be a basis for renegotiation. If you have broken thermal pane windows, two leaky faucets, asbestos on a steam pipe, and a few uncovered junction boxes, you won’t have them as surprise expenses days before a closing.

A home inspection also provides sellers with greater control over repairs, if you choose to do them.

When problems arise during a buyer’s inspection, the seller may feel pressured to make last-minute repairs or provide concessions to keep the transaction intact. By discovering issues beforehand, the seller can choose how to handle them, whether that means making repairs, offering a credit, or simply disclosing them.

Having a home inspection before listing can also enhance buyer confidence and trust.

Buyers feel more comfortable making an offer when they know the seller has been transparent about the home’s condition. More importantly, buyers become more confident that their purchase is a good one.

So-called “buyers remorse” often coincides when they receive a copy of their own inspection report a week or two after the offer has been accepted. If they have already seen a report that lists 99% of what appears on their own report, they – and you – can rest easy.

In addition, a pre-listing inspection can help a seller price the home more accurately.

If hidden problems exist, they could affect the property’s value. Knowing the exact condition of the home allows sellers and their real estate agents to set a fair asking price that reflects any needed repairs, minimizing the risk of overpriced listings that linger on the market or underpriced sales that leave money on the table.

Another crucial benefit of conducting a home inspection before selling is reducing the likelihood of last-minute negotiations.

If a buyer’s inspection reveals issues that were not previously disclosed, they may request a lower price, demand costly repairs, or even back out of the transaction. These situations are usually the biggest headaches for our sellers (and us!). By being up-front about the home’s condition and addressing concerns in advance, sellers can reduce the chances of drawn-out negotiations or closing delays.

A pre-listing inspection may also speed up the overall sales process.

Buyers who receive a clean inspection report from a reputable company may even waive the buyer’s inspection contingency, expediting the closing process.

From a legal standpoint, a pre-listing home inspection may help sellers fulfill their disclosure obligations.

Sellers are legally required to disclose known defects in most states. By conducting an inspection, sellers can ensure they have done their best to present their home’s current condition, possibly reducing the risk of legal disputes arising from undisclosed problems after the sale.

What kinds of inspections should we do?

When considering what type of inspections should be done, I usually suggest the general inspection covering the typical electrical, roofing, foundation and plumbing concerns. I also suggest a sewer line inspection in homes more than twenty years old – or with large trees near the line.

Wood destroying insect (termites, carpenter bees, etc.) inspections are also strongly recommended. Since radon levels can change rather quickly, I tend to leave that to the buyer while preparing the seller for a possible $1500-$2000 charge should the reading be too high.

Investing in a home inspection before selling can also be cost-effective in the long run. While a pre-listing inspection does come with a fee, it is often a fraction of what sellers might have to pay for last-minute repairs, concessions, or prolonged market time due to undiscovered issues found on a buyer’s inspection report. It also allows sellers to choose cost-effective solutions rather than being forced into urgent repairs under a buyer’s timeline.

My advice from on high is for you to strongly consider telling your sellers that a pre-listing home inspection is a smart move to ensure a smooth and successful transaction. By taking this extra step, sellers can avoid unexpected challenges and position their home as a well-maintained, trustworthy investment for potential buyers.