Everyone wins with a Pre-Listing Property Inspection!
This month we’re lucky enough to have Steven Fletcher, owner operator of Blue Seal Property Inspections, back to talk about pre-listing property inspections.
I’ve seen first hand how these inspections help sellers and buyers. A couple of months back I had buyers who had put in an offer on a home, with a condition of the sale of their home. The offer was made Thursday evening and it was late Friday afternoon by the time it was a done deal.
Within a couple of hours of my clients notifying me of the accepted offer the sellers invoked the 48 hour clause. They had another offer. The clients now had until Sunday evening to remove ALL conditions. Yikes!
Luckily my clients were very well qualified to carry both properties. They also already had a conditional offer on the sale of their home. The buyers were very comfortable from a financing perspective.
To top it off, the sellers had a pre-listing property inspection – what luck! This gave the buyers the peace of mind they needed to remove all conditions, including the inspection condition. The stars were aligned for these clients!
Why not take control of the inspection process from the start?
As most of us know we have a strong buyers market in Calgary right now and that’s making it increasingly tougher for sellers to get top dollar for their homes.
Think about this, why not know the condition of your home before you list?
What would you say if I told you that having your home Pre-Inspected could help it sell faster? It could help reduce and possibly even eliminate those last-minute negotiations that tend to take place after a buyers inspection?
A Pre-Listing Inspection gives the seller the option to make repairs before the house is listed or disclose the defects and price the house accordingly.
As a realtor you can also use the Pre-Inspection as a marketing tool which in turn will help sell more houses – for more money – faster.
Did you know that NOT having a Pre-Listing Property Inspection can be stressful?
Home sellers in the past did not want a home inspection that might point out defects. Especially if the buyer was not likely to get a home inspection. However, The Industry Has Changed. Before home inspections became popular, sellers had a strong disincentive to disclose the condition of their property. Currently the vast majority of buyers are insisting on having a home inspection before completing the purchase. Home inspections are now an integral part of most real estate transactions.
The buyer’s home inspection often creates stress for everyone involved because it typically takes place near the end of the transaction. After the buyer has already fallen in love with the home. And after the price has already been negotiated. Then we perform the buyers inspection and occasionally larger defects are discovered, this is when the Stress sets in!
Stress from the buyers side – The home that they’ve fallen in love with may not be as perfect as they initially thought as well as the cost of repairs if they proceed with the deal.
Stress from the sellers side – They’re now being faced with another potential price drop or cost of repairs as well as the possibility that the deal may fall though.
Stress from the realtors side – The transaction was almost a done deal and now they are back at the negotiating table or facing the possibility that the deal may fall though.
Let’s face it, the buyers inspection often leads to difficult re-negotiations or transactions falling apart altogether.
A Pre-Listing Property Inspection Provides Benefits for Everyone
A pre-listing inspection allows buyers to make an informed decision which facilitates much smoother negotiations.
Having a pre-listing inspection report available to potential serious buyers will help the home to sell faster and assist in making the transaction as smooth as possible vs those without. In a hot market when there is a bidding war some sellers won’t even consider a conditional offer which consequently encourages some buyers to take unreasonable risks, make emotional decisions and place offers without the condition of a home inspection.
A pre-listing inspection report brings more buyers to the table, creating a transparent negotiating environment for both the seller and buyer. With the home’s condition disclosed to all, everyone wins and there is less liability for everyone involved.
Benefits for BUYERS
Knowledge is power, transparency is everything and buyers can make educated and informed decisions when purchasing their home. Some buyers do wonder if they can rely on the sellers inspection report. In this case and for a small fee we can provide buyers an On-Site Review that explains the report and its findings. This creates a contractual relationship between buyer and the inspection company. Buyers may also choose to have their own inspection performed as well as reviewing the pre-listing report.
Benefits for REAL ESTATE SALES PROFESSIONALS
Real estate professionals are beginning to recognize the benefits for both parties as well as the speed and simplicity that It brings to the transaction. Fewer issues arise and all parties are more comfortable when the property condition is fully disclosed and transparent.
At the end of the day, sharing valuable knowledge is the key to being a successful real estate agent.
With demonstrated expertise, agents can:
- Position themselves as true professionals
- Take control of the selling process
- Provide a higher level of service to clients
- Create a listing process that will sell homes faster and for more money.
A pre-listing inspection is often arranged and paid for by the seller prior to listing their home. Many Listing agents are choosing to pay for the pre-listing inspection on behalf of their clients as part of their listing services.
Benefits for LENDERS AND MORTGAGE INSURERS
Mortgage lenders and insurers are concerned about the buyers ability to make payments, meet their financial obligations and maintain their home. Small down payments, large personal debt, rising interest rates and an uncertain economic environment in Alberta.
Lenders and insurers can appreciate knowing that buyers are making well informed decisions. Knowing that the roof, furnace or hot water tank needs to be replaced in the next year, the buyer can budget accordingly, rather than having a large surprise expense.
It helps everyone when buyers can create a financial plan for the first few years of home ownership.
POSITIVE CHANGE FOR EVERYONE
- A Seller’s inspection protects all parties involved by providing invaluable transparent information so that educated, informed decisions can be made
- The inspection should move to the beginning of the real estate process, where it belongs. A pre-listing inspection creates a win for all parties. The value of a home inspection is undeniable
- The time is right, and the logic is undeniable for pre-listing home inspections
- One commonly overlooked, but cost-effective way to get the best price for your seller
- Or calm your buyer’s fears in a multi-offer scenario
… Is a pre-listing home inspection!
Great insight, Steve! If you would like to know more about how Blue Seal Property Inspections can help your clients, give Steve a call!
Check out other guest posts from Steve, or ones that he’s collaborated with me on:
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