When exposing your home’s issues is actually an advantage
Pre-listing inspections uncover issues before listing a home for sale.
A full disclosure of the home’s problem areas can help make your listing more competitive.
An inspection allows you to account for repairs in the asking price.
Pointing out all your home’s flaws right before selling might seem like asking for trouble, but a pre-listing home inspection can uncover potential surprises that could derail the sale of your house. If you're ready to sell your home, a pre-listing home inspection helps you identify and address repairs, which might lead to a faster sale and more money in your pocket.
A pre-listing inspection, which is paid for by the seller or listing agent, provides a written inspection report on the condition of the property prior to listing the home. It’s very similar to a home inspection scheduled by a buyer after an accepted offer, it just happens before putting your house on the market. In addition to verifying the home's condition, a pre-listing inspection can uncover any concerns that might compromise a sale.
Typically, buyers request and pay for home inspections before closing the sale of the home. By getting your own inspection before putting your home on the market, sellers can address repairs, safety issues, and other potential obstacles before the buyer becomes aware of them. Buyers can still get their own home inspection, but a pre-listing inspection provides the seller with a full disclosure of the home’s condition.
A pre-listing home inspection covers the same things as regular home inspections, including inspecting the foundation and structural integrity of the house, roofing, siding, electrical, plumbing, heating and cooling systems, and more.
The main difference between a home appraisal vs. a pre-listing home inspection is that an appraisal is concerned with the home’s value and the inspection evaluates the home’s overall condition and repairs needed. Both services provide you with important information about the home, but they have different purposes.
Home appraisals look at factors such as general condition, location, and comparable homes in the area to determine a fair market value. Buyers usually cover the cost of an appraisal, and lenders typically require a home appraisal report to assess risk and approve a mortgage loan.
In comparison, a pre-listing home inspection is an in-depth investigation of a home that assesses its condition, evaluates any potential safety hazards, and identifies any repair needs or potential costs.
Whether prior to listing or before closing the sale, a home inspection is an important part of the sales process that protects all parties involved. Pre-listing inspections also come with a few extra advantages for sellers.
Sellers can choose a home inspector they trust to perform the inspection and assist in providing details of equipment maintenance, supply dates of improvements, and explanations for current conditions. If a buyer gets a separate home inspection, the two reports can be compared and considered for discrepancies.
A pre-listing home inspection helps the agent set the seller's price expectation and can be used to justify the asking price. With repair needs and costs accounted for, buyers have less opportunity to negotiate the asking price.
With an overview of both major and minor issues found in the inspection, sellers can preemptively arrange repairs before listing. This also gives sellers time to compare prices from local contractors, otherwise, they may be responsible for work done by a more expensive contractor chosen by the buyer.
A full disclosure provides buyers with a professional and full review of the home’s condition, which can save them costs on a pre-sale home inspection and help with getting financing. Since many sellers opt out of pre-listing inspections, being one of the only homes in your market that’s already verified as safe can make your listing more competitive and entice buyers.
In addition to relieving the stress of finding unexpected issues with the home for either party, a pre-listing inspection lends credibility to sellers and can help earn the trust of buyers.
Pre-listing home inspections come with many advantages, but there are a few drawbacks to consider.
Buyers usually cover the cost of a home inspection, so they can ensure they’re not taking on any unexpected issues or risks when buying a home. With a pre-listing inspection, the seller has to pay.
Full disclosure is an advantage in most situations, but it can also be a disadvantage for homes with a lot of known repair needs or other issues. Many state laws require a seller to disclose any known issues with the home to the buyer before closing.
The cost of a pre-listing home inspection is between $300 and $600 but can increase by several hundred dollars if you have a large home. Most local home inspectors charge a fixed price for homes up to 2,000 square feet and then charge $25 more for every additional 500 square feet. These fixed costs are based on standard inspection times, which are between 2 and 4 hours.
A pre-listing home inspection provides sellers with a detailed evaluation of their home as well as important insights about its condition and repair needs. Come prepared with a list of questions to ask during a home inspection.
A pre-listing inspection can point out issues with your home, allowing you to address them with repairs or reflect them in your asking price.
Some common home inspection issues include:
Plumbing leaks
Wall or foundation leaks
Termites and pests
Mold
Faulty electrical wiring
Faulty smoke and carbon monoxide detectors
HVAC issues
Roof damage
Ground sloping toward the home
Use this home inspection checklist for sellers to identify any questions or concerns you can later bring to your local pre-listing home inspector:
Foundation: No exposed cracks
Structure: Walls don’t bow or sag, and window and door frames appear straight
Roof: Flashing in good repair and no missing or damaged shingles
Exterior: Fencing is in good repair, gutters are secure and drain away from the home, and driveways and sidewalks don’t have significant cracks
Interior: No chipped paint and doors and windows latch properly
Kitchen: Appliances are in good working order, and cabinets and countertops are in good condition
Bathroom: Proper ventilation and shower, bathtub, and sink fixtures are in good working order and with caulking in good repair
Attic/basement: Proper insulation and no signs of damage, leaks, or pests
Electrical: Wiring, outlets, and circuit breakers are in good condition
HVAC: Proper ventilation and air conditioning, and the furnace is in good repair
Plumbing: No signs of stains, damage, or leaks, and drain pipes slope downward to the sewage system. Hot water temperature doesn’t exceed 125 degrees Fahrenheit
Miscellaneous: The fireplace is in good working order and smoke and carbon monoxide detectors are functional