These days, Buyers are less forgiving about inspections issues and more willing to "push back" unless they get their way at the inspection contingency phase of the transaction, some may even threaten to terminate the agreement with the Seller all together (if allowed for in the agreement).
Two sets of negotiations normally take place: the initial negotiations at the inception of the agreement of sale on price & terms, and the inspection contingency period on repairs/replacements, or credits. While this is nothing new, what has changed these last few years is the mindset of the Buyer.
While the dreaded words (termites, wet basement, mold, stucco leaks, radon - to name a few) can often have Buyers in a panic and running for the hills - these issues can often be remedied by professional remediation to make the situation whole again. So the Seller needs to ask a basic fundamental question: do I want to know about any issues now and deal with it upfront before I put my home on the market, or do I want to hear about issues later while I'm in the middle of a real estate transaction and have mentally sold my home?
And if the Buyer walks due to inspection issues - and the Seller places the home back on the market, the Seller must now disclose these inspection issues whether they have been addressed or not. Buyer agents and Buyers will now want to know the reason for placing the home back on the market; the conversations that ensue can be rather uncomfortable ones.
Inspection concerns don't stop with the Buyer, not directly anyway. If the Buyer is financing their purchase with an FHA-insured loan (and there are many these days), there will be an FHA -based appraisal. While the dreaded VC sheet (value condition) is a thing if the past, there are still certain FHA "minimum property requirements" and "minimum property standards" (termites, leaking or near end of life roofing, foundation, structural, inadequate or failed plumbing heating, or electrical - are examples) that must be met or the lender may require repairs be done prior to underwriting the loan.
And, many local governmental municipalities are now requiring a Use & Occupancy Re-Sale permit (in PA anyway) along with an on-site inspection by a municipal inspector. Almost all municipalities have a required list of items that will be inspected and must pass or the permit will not be issued which can delay settlement.
The other important dynamic is time, or the lack thereof. During a real estate transaction, "time is of the essence". There are certain time limits agreed by the parties upfront during the original negotiations for inspections, responses, and if needed, professional evaluations and quotations (e.g., electricians, plumbers, roofers, HVAC, etc., etc.) which must be worked in during these time constraints.
Economics is another very serious consideration. If a Seller chooses to have the repairs done prior to listing their home, they can shop around for the best price and choose the best contractor for their needs - solely at their discretion. Many disputes arise between the parties at the time of the Buyer's home inspection period: the cost of the repair. The Buyer's idea of the cost of a repair or replacement often gets blown out of proportion with the addition of emotions.
To sum it all up, there is a very pro-active aspect to the Seller having a home pre-listing home inspection. Attaching a home inspection report (and receipts for any repairs that the Seller may have had completed) to the required "Seller Property Disclosure Statement "- will most likely be favorably viewed by potential home Buyers. In addition, some Buyers may take the pre-listing inspections into consideration in their offering price and/or address any unresolved pre-listing home inspection issues upfront. They may even decide to waive some or all of their home inspection contingencies all together. The benefits to the Seller of doing a pre-listing home inspection are many, primary of which is a smoother real estate transaction with the ultimate goal of the home being SOLD sooner, rather than later.
Your REALTOR® can advise and guide you on the type inspection(s) that are recommended for you particular property. I personally prefer to provide my clients with a list of at least 8 local and national home inspection firms to choose from including those that are member in good standing with a national home inspection association such as ASHI (American Society of Home Inspectors) or NAHI (National Association of Home Inspectors).
Please note: The above is for informational purposes only. You are encouraged to seek the advice of a home inspection professional(s) of your choosing, the advice and guidance of your own REALTOR®, or the legal advice of an attorney.
