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Is
it always smart for a seller to conduct a pre-inspection on their home and make
all the repairs
before
getting it on the market?
I’ll let you be the judge, but I’ll give you some
things to think about and share a real life story with you.
Sellers
sometimes order a pre-inspection and undertake the repairs because they want the
buyer to feel confident they are buying a home without problems.
That shows the seller is being proactive, which I
love to hear.
It’s very admirable, but it
doesn’t
mean the seller is
home free on any further repairs.
The
condition of a home can literally change at any moment.
If you are handing a buyer agent an inspection
report from months ago, who’s to say something has happened to the home the
seller doesn’t even know about?
In a way, an inspection is really only good for the
day it took place.
If
I have a seller’s pre-inspection report, I will give it to
the buyer agent, but I will make darn sure they understand we are not asking
their client to rely on it.
Of course, I cannot force a buyer to conduct their
own inspection, but buyer’s will typically do so at the urging of their agent.
How
thorough and consistent are home inspections?
I’ve always said give me three good inspectors on
the same home and I can
guarantee
you they will each find something the other inspectors missed and miss something
the others caught. There are pre-defined items which all licensed
inspectors are required to inspect, but beyond that, the inspectors have a lot
of leeway on their inspections.
As
with real estate agents, some inspectors are more thorough than others.
Some will crawl through tight attic spaces and even get beneath a home if they
can. Others won't. They might not even
fit
in a crawl space
If so, the inspector will state that particular
area of the home was not inspected because it was inaccessible, but that doesn’t
mean some kind of problem wasn’t there.
Some
inspectors are more qualified and experienced than others.
I’ve found some to be very slow and methodical.
They take their time and you can tell they take
pride in their work.
Others will blow through a home quickly and I
wonder, how complete was that inspection?
So really, no two inspectors or inspections are
exactly alike.
I
once had a home listed that went under contract and fell out
three
different times over a several month period.
The buyers all backed out for reasons totally
unrelated to the condition of the home.
That allowed me to see how similar three
inspections by three different inspectors would be.
As
it
turned out, every inspection report was completely
different from the others.
There were never any big items, just a lot of small
issues.
But
those can add up when you have to hire a handyman.
It made me wonder why the first and second
inspector hadn’t caught the things the third inspector found.
Those problems were obviously there during the
other two inspections.
To
add salt to the wound, the sellers, wanting to be
proactive and do the right thing, repaired the items after every inspection.
Every time they thought they were through with
repairs, but they weren’t.
If
the first buyer prospect had purchased the home, the seller would never have had
to make the repairs the second and third inspectors found.
You can see why the seller became convinced they
were
paying for unnecessary repairs.
There’s
another thing to consider before ordering a
pre-inspection.
Many times, minor repairs called out are not
considered minor by the seller.
For example, maybe there’s an area of the roof
decking that’s impossible to reach and is missing some insulation.
The seller has lived with it like that for 10
years, never knew about it, and wouldn’t have done anything about it even if
they had known.
But now it’s on the pre-inspection report.
When
the buyer receives the pre-inspection report they see the missing insulation was
called out.
One of two things will happen.
Either the buyer will agree it’s not a big deal and
let it go, or, the buyer will decide it
is
a big deal and ask the seller to address it.
The seller is already negotiating on repairs before
the buyer’s inspection has taken place.
If
a seller wants to do a pre-inspection and make the repairs, I'm certainly not
going to discourage them.
I just make sure they are prepared for the
probablity of an entirely new set of repair items after the buyer does their
inspections.
Frankly,
I would prefer the seller not do a pre-inspection, let the buyer do their own,
and work off the buyer’s inspection report.
The seller
can use the money they saved from
not
doing a pre-inspection on repairs the buyer's inspector finds.
Of
course, there is one
big
exception to this rule. If you believe you have structural or safety
related issues in your home, you should always call an expert out to look at the
problem and correct it
before
you place your home on the market! Use a licensed contractor for the
repair, document the work, and make sure you disclose the repair on the Sellers
Disclosure Notice.
The key to staying out of trouble when selling a
home is disclose, disclose, disclose.
Tom Grisak Estate Homes Realtors, Inc - Texas License # 0329533 |