If you are considering putting your home on the market, chances are that you have started to make a list of some repairs and fine tuning you notice as you walk room to room. While its incredibly important to pay special attention to the way your home presents visually (is it sparkling clean? Is the furniture appropriately placed and proportioned? Is the landscaping refreshed? Do all the primary components function properly without being held together by a rubber band and some chewing gum?), it is equally impactful to collect and provide information regarding the physical components of the property in effort to set your future negotiations up for success.
The worst thing that (often) happens during the escrow process is that a buyer falls in love with a home, only to find out through the course of their inspection process that the sewer line leaks, the roof needs major repairs, the foundation has shifted, or the electrical panel is a fire hazard…or all of the above. In this case, the buyer will often request that the seller either make the necessary corrections or offer a credit/price reduction reflective of the cost for said repairs. This can be quite costly to a seller and, more times than not, result in a cancellation of escrow, forcing the seller to solicit a new buyer and disclose to them all the information they just learned about. You can probably guess what happens from there with regards to price.
As a 20-year veteran real estate professional, I believe my job is to solve a problem before it arises. Proactive in nature, I find it incredibly empowering and advantageous for a seller to learn about and disclose “the good, the bad, and the ugly” at the onset of the offer discussions. By having a few essential inspections conducted in advance, sellers can often take the opportunity to make some impactful repairs prior to going to market, and/or simply provide the information to prospective buyers so that they can make an informed offer. While the goal is to eliminate the eventual re-negotiation that takes place once a buyer has conducted inspections, this is not always the case. This practice will, however, definitely minimize the financial impact of any renegotiation that is certain to take place.
I often get asked by seller clients if the practice of providing these inspections up front will hurt them. My reply is always the same….the buyers are going to find out this information at some point. Would’t you rather be in front of the “8 ball” rather than behind it? Unless you prefer to have negative surprises resulting in financial loss rather than gain, or if you prefer to set up your buyer and yourself for disappointment, I urge all sellers to take my advice. By providing a few inspections to your future buyer, you are paving the pathway to success for your sale.
If you’d like to learn more about what types of inspections should take place, or simply wish to discuss other strategies I employ to help my sellers keep more money rather than give it to their buyers, please give me a call at 619-944-2798. I’d be happy to help you navigate through this ever changing real estate market.