The British Columbia Real Estate Association forecasts nearly 78,000 real estate transactions will take place in 2011. Each transaction should utilize the home inspection process. For sellers, this is often seen as a leverage tool for the buyer to try to obtain credits for identified problems. But there is evidence that the home inspection can be more beneficial for the seller than the buyer.
In the case where the buyer has fallen in love with the property, has been approved for funding contingent upon the inspection; the devastation of a poor finding can drive the buyers to a new location or they will use the finding to drive the price into the ground recouping credits for the necessary repairs or improvements.
The proactive seller will see the inspection as a marketing tool. First, it eliminates surprises. If there are issues that have yet to surface; the home inspection will provide an opportunity to decide if the problem requires attention or disclosure. A pre-listing inspection can be an important leveler in the pricing process. It will alert you as a seller to pending problems, it will eliminate surprises and will allow you to provide additional documentation in the spirit of disclosure.
Instead of being on the defense with the results of the home inspection, the seller can determine the market value of the identified issues. Roof needs repair; here are three local estimates to determine the value; so if the seller decides to disclose rather than repair the credit negotiated will not exceed the market value of the repair.
It will also alert the homeowner to safety concerns. If the house does not sell, the seller will be aware of potential expenses in the near and mid-term future.
Many inspectors work with the real estate agent, but the relationship between the inspector and real estate agent is often seen as controversial. While most inspectors and agents maintain a professional relationship; some believe that low cost inspectors who may “miss” important conditions are often “recommended” or “referenced” by the agent trying to move a house that may have problems. This process may be less expensive to the party contracting with the inspector, in the long run it will likely be far more expensive than a professional inspection with necessary repairs made in a timely fashion.
There are conditions that are impossible to detect without the appropriate tools and experience. The home inspector can reveal health issues like mold. They can see termite or other pest damage. Plumbing and electrical issues rarely present clear symptoms to the average homeowner until they need costly repairs, the home inspection can help project the expenses looming. Structural or foundation issues can impact the market value of the home, some symptoms may be obvious to the trained eye, but may be missed in the quick walk through of the prospective buyer.
Selling your house need not be a stressful experience, know what to expect. Understand the benefits and drawbacks of your home and capitalize the benefits. Showcase the house to the best of its assets and understand how pending issues can impact the price of your house on the market.Posted by Rick Clarke on