Pre-Inspected Listings: No Last Minute Surprises
Until recently, home inspections have been mainly for the benefit of the purchaser of a new home. Pre-inspected
listings serve to benefit all involved in the sale of a home—purchaser, vendor and realtor.
When home inspections are performed for the purchaser’s benefit after an offer is made (and especially if done
as a condition of the offer), unexpected findings can kill deals. This can be the result of the discovery of a big problem with the house that scares the purchaser off, or it could be that the house was misrepresented during the sale. Occasionally a home inspector alarms the potential purchaser and sabotages the deal by not explaining that minor, typical problems are just minor and typical.
When a home is inspected before listing, there are no last minute surprises and resulting devastation of deals. All parties are aware of the physical condition of the house before entertaining offers.
Realtors appreciate pre-inspected listings for another reason. Inspecting a home ahead of time eliminates the chance of the purchaser wanting to renegotiate their Agreement of Purchase and Sale. The difficult task of renegotiation often happens when an inspection of the home is done after the agreement is signed and new
information about the condition of the home is discovered. The arduous task of renegotiation ensues, and the realtor faces the emotional volatility of bringing a vendor with a "done deal” frame of mind together with a purchaser suffering buyers’ remorse. A vendor who pays for a home inspection ahead of time knows that a done deal is really done and the purchaser knows that "what you see is what you get.” this kind of assurance is said to even help to sell the house faster.
A realtor also appreciates home inspections for the objectivity that an inspection report provides when dealing with a vendor who has unrealistic expectations. For example, a report that shows that the house is not in top
condition can be used to explain why you can’t ask top dollar for it.
Sometimes a home inspection done prior to listing reveals where repairs are crucial. At the outset of the process of selling a house the vendor is typically more motivated about the condition of their existing home and repairs are done properly. If the inspection happens instead after the Agreement of Purchase and Sale, the purchaser may walk away or renegotiate. Even if the vendor has the option to do the needed repairs, there is generally less motivation to do all that is required if it is to satisfy a condition, once again opening the door for the deal to fall through.
Finally, in a buyers’ market, a house that has been inspected prior to listing bears a considerable advantage over those that have not. It carries the seal of approval that provides peace of mind for the prospective purchaser, with the added bonus of the ability to do a walk-through with the inspection company prior to making an offer
on the house.
Pre-inspected listings are likely to be the future of home inspections. Offers are cleaner and deals are less likely to fall through or be renegotiated. Doing an inspection prior to listing is sensible: it provides clear, objective and thorough detail about the condition of the home so that the purchaser has peace of mind, the vendor is realistic and informed and the realtor is unlikely to find him or herself refereeing a renegotiation, or worse: a failed deal.