Having a home inspection put the seller in the best negotiating position when an offer is received. Instead of having to estimate what price you can sell for and how much you might have to put toward repairs, you’ve been smarter than the average seller and already completed all the necessary repairs! Your pre-listing inspection let you know the condition of all systems in your home and have them repaired/replaced on your time frame with vendors you chose based on price/availability/reputation. In contrast, a seller without a pre-listing inspection is at the mercy of the buyers inspection report and the closing date to complete and pay for all repairs.
Just imagine receiving an offer for $225,000 on your home you listed for $235,000. You decide that accepting an offer today of $10,000 less than you list price is better than waiting for a better offer. You’ve resigned yourself to $225,000 and this will leave you breaking even after paying commissions, attorney fees, and your mortgage balance. You think, better break even than lose money.
Then comes the home inspection. The home inspector finds you’ve had a small water leak from the dishwasher supply line for about 3-4 months. This leak has ruined insulation, left standing water in the crawl space, requires the kitchen floor to be removed to dry out properly to prevent mold, and some joists need to be replaced under your house. All totaled the cost is over $10,000 and insurance will pickup the tab(minus deductible), but you won’t close on time, have an extra months mortgage payment, have your home ripped apart, the buyers want out of the deal and all along you thought the home was sold! You fix everything and the buyer walks away because they don’t feel comfortable buying a home that had just experienced significant water damage. Now it’s time to put the house back on the market and try to find another buyer! Now this may sound dramatic, and it is, but this was a recent experience one local seller had. Should have had a pre-listing home inspection!
If the seller had completed a full home inspection, they would have caught the leak, made the repairs, and listed the home after all repairs were done. They would have had confidence to accept an agreeable price knowing they wouldn’t have unknown expenses arise during the contract period!
A typical full home inspection runs around $300-$400 depending on the size of your home. This nominal investment can make a significant difference in your net at closing! Isn’t it worth it?