Video Transcript Below
Is it necessary to get inspections done before actually listing your house on the market for sale?
Hi, I’m Tristan Colborg with The Denver Real Estate Agent.com and eXp Realty in Denver. In our area, it’s typically customary for the buyers to pay for their inspections. But when would it be advantageous for a seller actually to do them before going active on the market?
I don’t always recommend this, but here are some outstanding examples of why having exceptions done before listing is beneficial for you as a seller. It can end up saving you time and money. As a seller, you want to be aware of the condition of your home and the property, and we don’t want any unexpected costs to come up that you weren’t aware of.
Why You Might Have Inspections Done Before Listing
We’ve seen inspections with foundation issues costing over $20,000. Imagine getting a bill for $20,000, and the only way the buyer will purchase the home is if it’s fixed and paid for before closing. What if you already purchased and paid for another home, and you needed that $20,000 to qualify for your next purchase. This would create a massive problem for you.
What about this? Let’s say you found out that the home you were selling needed a new roof or an air conditioning unit, and it had to be replaced. You could do a few things. You could sell the home as-is. You could disclose the issues, not sell at all, or you could take what needed to be repaired and fix it.
The idea behind getting inspections done before actually going on the market is so that there are no surprises that could financially hurt you later. We want the seller to be aware of any additional expenses that can arise from their home sale.
The inspections we recommend are the regular standard inspections that the buyer would typically do. We recommend a home inspection, a roof inspection, radon inspection, and sewer scope. If you live on land, there are other inspections we recommend as well. In most cases, you have the option to pay for these upfront or when escrow closes. Regarding the home inspection and roof inspection, it’s helpful but not mandatory to make sure that all the health and safety issues are fixed.
Know What You Will Net At Closing
It helps the seller because they have much more assurance that they will net what they thought when they went into escrow. It gives them peace of mind that the buyer won’t ask for any unreasonable or outlandish repairs that aren’t necessary. It also cuts down on inspection times! Having inspections done prior also protects the seller if they have a replacement property to purchase and need every single penny out of the sale to secure their close on their new purchase.
Also, the buyer is more confident they are buying a sound home that is move-in ready condition. Plus, if there is bank financing on the property, some loan programs could require all health and safety issues repairs to be completed before going or closing escrow on the property. So with repairs being completed, there are further assurances the load will go through.
To wrap it up, sellers, buyers, and lenders are more confident throughout the entire transaction that the home will close. It keeps everyone safe and sound during escrow and after the close of escrow. If you have further questions, please reach out to me. Again, I’m Tristan Colborg with the Denver Real Estate Agent, and remember, you deserve an elevated real estate experience.