According to the National Association of Realtors, 76% of residential real estate sales in 2023 contained contingencies. Most of these contingencies were placed by sellers who required the sale of their existing home to purchase another one.
It’s a step that most property owners will make in the course of their lives, and it’s also a little more difficult than buying your first home.
Not only are sellers worried about purchasing a home in good condition, but they must also ensure that the home is in good condition to attract the offer they want.
It may seem costly to purchase a pre-listing inspection in addition to an inspection for a new home, but it can also protect many sellers from unknowns and avoid expensive delays that could impact the purchase of their new home.
If you plan to sell your home in Northeast PA, here is why you need a pre-listing inspection.
What Is a Pre-Listing Inspection?
A pre-listing inspection is a home inspection conducted by sellers to ensure that their home is in good condition and that all required repairs are made before it hits the market.
The inspection process is the same as the buyer’s inspection and is designed to help sellers expedite the sale of their home.
Benefits of a Pre-Listing Inspection
Getting a pre-listing inspection is a good way to address repairs proactively and gain peace of mind. Here are some benefits of a pre-listing inspection for sellers.
1. Proactively Address Issues
While you will have some basic knowledge of little odds and ends that need repair in your home, most homeowners are not equipped to diagnose major structural repairs that require immediate attention.
A professional inspector will be able to view areas you might not have access to, such as the roof or foundation, where the most expensive repairs in your home may be.
A pre-listing inspection will also give you an idea of what issues will appear on the buyer’s inspection. You will need to address them regardless to get ahead of the game.
2. Expedite the Sale of Your Home
If timing is a major incentive for you, then a pre-listing inspection can be a great way to address time-consuming repairs that may delay the negotiation process.
Sometimes, a buyer may be satisfied with a pre-listing inspection and forgo their own inspection, greatly speeding up the closing process.
3. Build Transparency and Trust
Pre-listing inspections market the condition of your home and build trust by establishing that you care about it. Making necessary repairs as they arise and showing potential buyers that could earn you more trust.
4. Gain a Competitive Advantage
While the market is still considered a seller’s market, a pre-listing inspection does give you an edge over other comparable properties in your area, especially if a buyer is picky. Again, if time is an essential factor in selling your home, then a pre-listing inspection can greatly expedite the process.
5. Get More Accurate Pricing
Finally, a pre-listing inspection can greatly help assess your property’s value and allow you to set a more realistic asking price. While not a deal-breaker, having your property sitting on the market for a long time and constantly lowering the price does not look good.
Additional Considerations of a Pre-Listing Inspection
While pre-listing inspections offer numerous advantages, there are some potential drawbacks that you should be aware of.
- Additional Costs: Inspections in the area typically cost around $400-$500, which can be costly for some budget-conscious homeowners.
- Disclosure Obligations: The seller’s disclosure must include any known issues. Of course, these issues would be found during the inspection anyway, but it could make it difficult to market your home.
- Repairing Your Home vs. Selling As-Is: Another consideration in a pre-listing inspection is whether you have the budget to make the necessary repairs or will sell your home as-is. Both approaches have implications for your budget and selling strategy, and deciding can be challenging.
- Buyers May Still Request Their Own Inspection: Most brokers encourage their clients to get their own inspection, even with a pre-listing inspection. This means negotiations arising from the buyer’s findings are still possible, though these are often less contentious when the seller has already been proactive.
When Should You Get a Pre-Listing Inspection?
While we recommend a pre-listing inspection for virtually every seller, there are some scenarios where it may be more beneficial:
- Older Homes: If your home is older or hasn’t been updated in years, an inspection can help uncover potential red flags that might deter buyers.
- Competitive Markets: In a hot market, providing a pre-listing inspection can make your home stand out.
- As-Is Sales: If you plan to sell your home as-is, the inspection report can set buyer expectations and reduce negotiation conflicts.
- Peace of Mind: For sellers who want to minimize stress and uncertainty, a pre-listing inspection provides a clear roadmap for preparing the home for sale.
How to Prepare for a Pre-Listing Inspection
There are many things that sellers can do to prepare for a pre-listing inspection to make their property look better on the report.
- Choose a Certified Inspector: Research and hire a reputable home inspector with experience in your area. Look for an inspector with positive reviews and relevant certifications.
- Declutter and Clean: Make areas like the attic, basement, and utility rooms accessible for the inspector.
- Document Maintenance Records: Provide records of repairs or upgrades to help the inspector understand the home’s history.
- Address Minor Repairs: Fix small, common issues like leaky faucets or missing shingles before the inspection.
What to Do After the Inspection
Once you have the inspection report, you’ll need to decide how to proceed. First, you must decide whether to make the repairs or sell the home as-is.
Based on your findings, you’ll need to talk to your agent to negotiate pricing and research your best course of action.
Don’t get caught by expensive repairs that can delay your purchase of a new home. Get a pre-listing inspection in Northeast Pennsylvania today from the experts at Mountain to Valley Home Inspections for the most thorough and transparent inspection available.
Our inspections cover every inch of your home, from the crawl space to the roof, so you can get the most accurate assessment of its condition possible.
FAQs
Can a pre-listing inspection increase my home’s value?
While the inspection itself doesn’t directly increase value, addressing issues identified in the report can make your home more appealing to buyers and justify a higher asking price.
Will buyers still need their own inspection?
Yes, most buyers will still want their own inspection to verify the home’s condition. However, a pre-listing inspection can reduce surprises and increase trust during negotiations.
Do I have to fix all the issues found in the pre-listing inspection?
No, you don’t have to fix everything. You can address major issues, offer buyers credit, or sell the home as-is. The inspection report helps you make informed decisions about your selling strategy.