SELL HOMES QUICKLY

- 1/1/2007

Today, real estate agents are working more closely than ever with home sellers to sell homes as quickly and for as high a value as possible. As a result, many real estate agents are now advising sellers to schedule a home inspection prior to putting their home on the market.

Agents who require a prelisting inspection -- a home inspection that is paid for by the seller before a house is put on the market -- not only reduce the possibility of last-minute surprises during negotiations, but also give their clients’ homes a marketing edge by providing educated buyers with upfront information on the condition of the home.

Ultimately, it is less expensive for home sellers to fix a problem than to allow it to become a tool in negotiating the price down on their home. Some estimate that for every dollar of identified repairs, the buyer would be looking at double that amount in a price reduction. Savvy home sellers who, for example, learn through home inspection that portions of the roof need repair may opt to repair that section immediately, rather than having the problem become a price-negotiating tool. Paying $5,000 for the repair is far more enticing than losing $10,000 in the sale.

Selling and buying, a home may be one of the most stressful events a person faces in his or her lifetime. Knowing the home’s potential problem areas before putting the house on the market creates a trusting environment between the sellers and the buyers. The prelisting inspection reduces the stress that might be involved in a transaction if surprises (damages, hazards, etc.) were to be discovered during the time the house is in escrow.

If, for example, three weeks before a house was to close, the water heater broke down, the seller would need to rush to schedule a repair, potentially costing thousands of dollars. If the faulty water heater had been discovered in a pre-sale inspection, the seller would have avoided the stress and unforeseen expenditure of replacing the water heater at short notice.

More and more, real estate agents are requiring home sellers to conduct a prelisting inspection in order to reduce the chance of a deal quickly falling into jeopardy or being lost altogether because of last-minute surprises. The prelisting inspection tells the seller exactly what needs to be fixed and itemizes all the costs. The seller can determine what he wants to fix and can create a budget for repairs. Then the house is ready to sell with no hidden problem areas waiting to surprise the realtor, the seller and the buyer.

Even a newer home with marble counter tops and hardwood floors may have problem spots. Buyers who are looking to make a big investment will appreciate the added touch of a prelisting inspection that is included in the home’s marketing materials, showing repair cost estimates and receipts. This information proves that the seller has all the information laid out for the buyer, making the sales transaction run more smoothly.

Much of the increase in prelisting inspections has been driven by real estate practitioners, who have witnessed just how quickly and easily they can sell a home with that information readily available for buyers to view. Having these reports on hand reinforces the fact that the seller has nothing to hide.

To ensure success, a pre-list home inspection is a simple way to create a win-win scenario.

Dan Steward is president of Pillar To Post. He can be contacted at 866.447.4202, or by e-mail at dsteward@realtysuccessonline.com.