Seller Inspections

Home inspections range from $375 to +$700 on average. This is a considerable chunk of change. The average mortgage payment in the US is +$1,700, which is a much larger chunk of change. There is no guarantee a seller's inspection will make your home sell faster, but it might. One less mortgage payment will more than pay for your inspection! Additionally, many home inspectors accept payment at closing, which would significantly reduce your risk. 

What if my real estate agent advises against a seller's inspection?

 First, ask them why. They may have a good reason, some of which we will cover in the next section. Second, analyze their response. Do they have your best interest in mind? Maybe they are not used to the service or are unaware of the benefits (see above). However, in any profession, there are a few bad apples. Here are two sample responses that should be concerning. 

Let the buyer find the issues. - This agent is dishonest and has jeopardized their license and your financial security if they are suggesting to not disclose known defects. Do not let the temptation of saving money cause you to be held accountable for future issues.

I know an inspector who will make sure the report is in our favor- This scenario requires two bad apples to be working together. It may be a tempting offer, but it is not in your best interest to join in their deceit. What if the buyer has another inspection? Now you are right back where you started. Plus, do you trust the rotten fruit to not sell you out in the event of a lawsuit? 

If your real estate agent is willing to be deceitful with the buyer, do you think they are being honest with you? 

This is not an attack on agents. To paraphrase Will Rogers, "I have never met an agent I didn't like." That being said, bad apples always exist. 

Is a seller's inspection right for me?

  It depends. Hopefully, your agent can provide advice, but here are some scenarios to consider.

• Is it a seller's market? If so, your house may sell with defects. For liability purposes, you should still consider the inspection, but it may not benefit you financially.

• Have you had a recent inspection? Maybe you have recently purchased the home, had a yearly maintenance inspection, or the house is newer and was inspected throughout the construction process. It may be best to contact the inspector and ask if they have a reduced rate for re-inspections. 

• Has your house set on the market or is the market slow in general? These are great scenarios for getting a seller's inspection. You need to stand out. Do what everyone else is not doing. 

• Is your home older? There are plenty of defects with new homes, but old homes have the additional impact of father time. Often, these reports will have a list of maintenance items that can be knocked out before the first offer is on the table.

Do I have to provide the buyer with the report? 

Nope! It is your report. Do with it what you please, but we encourage complete transparency!!

What is Move-in Certified? 

Move-in Certified is the best way to perform seller inspections. This is a program through the International Association of Certified Home Inspectors for their members. Upon the seller's request, the home inspector will upload the report to www.fetchreport.com and https://www.nachi.org/moveincertified,  where potential buyers can access the report using an email address or the home's address to access the report. 

Do I have to fix everything to be Move-in Certified? 

Nope; fix or disclose. It is up to you.

I had a seller's inspection, what now? 

Now it is time to make the tough decisions. Repair, credit, or just disclose and sell as-is? Your agent can provide some insight on the best decision, but it is ultimately your choice. 

If you make repairs, keep your receipts and have copies of them with the report. Ask your inspector for a re-inspection of the repairs. 

What if the buyer has another inspection and finds an additional defect?

This is tricky and largely depends on the contract and situation. Minor defects are usually a nonissue for any parties involved. Major defects may lead to additional complications. The simplest solution is to ask for a refund if the defect was present when the original inspection was performed. After all, the inspector missed a significant issue that should have been addressed. Thankfully, it was discovered before the transaction took place, so litigation will likely not be needed. Compare that with a traditional scenario, where the buyer finds an existing issue years later, where the seller along with the buyer's inspector may both be targets of litigation!!!

Are pre-listing inspections the future of real estate?

If I had a magic crystal to see into the future, I would probably not be writing this article! So I will just provide you with some information and let you decide!

Interest rates are rising. (April 2024, over 7%) House prices have not dropped since the COVID spike. Buyers are strapped for cash as inflation continues to climb. The NAR is being riddled with lawsuits that may have significant impacts on the home-buying process and the use of buyer's agents in general. To top it off, we are only 16 years removed from the worst real estate crisis in US history and the worst financial crisis since the Great Depression.

These events are causing shifts in the home buying process, and seller's inspection provides a sense of security to buyers and control to sellers.

Home inspectors can provide stable, honest information amongst all this havoc. They are not affected by the transaction. Choosing a good home inspector brings an honest, third-party broker into one of the largest transactions you will ever make!

Disagree? Have thoughts or opinions? Comment below and we will get back to you!