A New Trend in Home Selling? By Stephanie Andre
Why is the home inspection one of the last things we do in the home-buying process? To devote all of that time, energy and paperwork to the deal only to potentially hit a snag at the end? If only there was another way…
Enter the pre-listing inspection. While it’s not a new concept, it’s certainly one that, as of late, is picking up steam.
“A pre-listing inspection gives the seller a great heads up,” says Dan Steward, president of Pillar to Post. “It gives them a sense of credibility on the property and eliminates any last-minute surprises. Plus, with some areas rolling over into more of a buyer’s market, sellers are looking for some type of advantage—something that separates their home from the competition.”
Prices are still going up and sellers want to not only protect their investment, but also get the maximum selling price, he says.
In fact, some in the industry say a pre-listing inspection could help the seller save significantly—they estimate that for every dollar of a problem found, the buyer can negotiate $2 to $3 off the selling price, Stewart adds.
Worth the Price
Susan Spellman, a Realtor with Long & Foster in Williamsburg, Virginia, says she believes a pre-listing inspection is so important to the transaction that she hesitates to take a client unless they agree to it.
“I always say, ‘don’t be dollar dumb.’ Having the contract in hand is not the time to wonder if something needs to be addressed in the home,” she says. “No one likes to be surprised.”
Sandy Schoon, a Realtor with Arizona Best Real Estate in Scottsdale, Arizona, agrees.
“I am encouraging these inspections more and more,” she says. “In the long run, a pre-listing inspection could save the seller an enormous amount of money.”
An example: Schoon says she recently had a seller who refused the pre-listing inspection, despite Schoon’s suggestion. Several weeks before closing, the air-conditioning system went out.
“That’s obviously a huge cost, because now she had to replace the entire unit,” Schoon explains. “If she had had the pre-listing inspection, the problem would have been found before the unit gave out and she may not have had to replace the entire system.”
Conversely, if no major problems are found in the house, the buyer then knows that they are getting a house with a clean bill of health, she adds. “You can say, ‘here’s the home inspection report,’ and lay it out on a table where people will see it when they come to view the home,” she says. “It brings an added confidence about the home.”
While the cost of the inspection averages about $400, Spellman says it’s quite a bargain when you consider the peace of mind it can bring to the seller, Spellman says.
“I say to people, ‘by the way, when was the last time you were in your crawl space? Do you know what you’re looking at?’ I am very adamant about that,” she says. “Knowing you’re not going to be blindsided about a major cost is a great relief for these sellers—the inspection is worth the price.”
Confident in their Purchase
A pre-listing inspection also helps buyers feel more comfortable submitting an unconditional offer, Steward says. “They like it because property concerns are addressed upfront, and it gives them full knowledge of the home when they make a decision,” he says.
Schoon says increased confidence in the home—especially older homes—is what she hears most from buyers. “They have the assurance that the house has been well maintained,” she says. “Also, they see that the owner has pride of ownership and went above and beyond for the home—that promotes confidence.”
Adds Steward: “There’s a certain sense of security and confidence that comes with the pre-listing inspection. It gives them an idea about the house so they can budget and manage as owners of the home.”
For Spellman, she says Pillar to Post’s inspection reports make a huge difference with her buyers. “Happy is an understatement,” she says when referring to the reaction she receives. “Typically, a buyer might spend 10 minutes walking through a home. But I invite them to sit down and read the report. They are very satisfied after looking through it.”
An Asset for Agents
From the agent’s perspective, the inspection report is clearly an effective marketing tool, says Steward. “We present the report in a professional binder, complete with color, digital photos,” he explains. “We also make sure that the report is written in layman speak, with 10 to 20 pages of detailed information.”
Steward explains that this really adds an element of professionalism for agents as well. “It’s part of doing a quality real estate transaction,” he says. “Good agents are looking to do the right thing in the long run.”
Schoon and Spellman agree, adding that their peace of mind also comes from working with Pillar to Post’s inspectors; both say they won’t even call anyone else.
“I have used Pillar to Post for the last three years, faithfully,” Schoon says. “The gentleman I work with is super—not just with me, but with both the sellers and buyers as well. He is so careful about everything he does. Knowing I can trust him is a big relief.”
Adds Spellman: “The [Pillar to Post] inspector I work with is so thorough and also very helpful. Even when I’m representing a buyer, after we write up the contract, I ask him to pencil me in. Once the contract is ratified, I already have the date available, which saves everyone time.”
Steward attributes the Realtors’ satisfaction to his company’s standards.
“This business comes down to a sense of trust,” Steward says. “The presence of good brands—for both Realtors and consumers—is important.
“Our single biggest expense is training and development,” he continues. “It is different now than it was 10 to 15 years ago when a retired handyman would come inspect your home. We make sure our inspectors are certified and trained. They also have E&O insurance, which also protects the referring agent.
“From our point of view, home inspections have become more significant,” he adds. “Transaction sides may fluctuate, but as we do more work, we become a more sophisticated industry.” |
