Thursday, January 24, 2013

Consider the Value of Home Pre-Inspections Prior to Selling



A professional pre-inspection can be a very valuable step in the listing and marketing of your home.  While professional home inspections are not a new concept, the idea to have an inspection done at listing is gaining  acceptance. After all, why wait until there is a real estate contract on the line to find out if there are any significant defects in the home? A pre-inspection can help to alleviate any inspection issues that may otherwise not be known until a contract is in place and inspection issues arise that affect the health and safety of the current homeowners and the potential buyers

Inspection issues are the most common reason for buyers to terminate contracts with the seller.  Also, seller disclosure requirements are causing sellers to take proactive measures to protect themselves against future liability during the sales process. Today's seller wants to close their deal knowing they made a full disclosure of any property conditions in the home.

The cost of a pre-inspection, using a 3 bedroom, 2 bath, 2000 Square Foot home as our example, would range from approximately $350 to $400.  A radon test should also be added at an additional cost of about $100.   

There are a number of common inspection issues that tend to come up such as electrical and plumbing issues, and other repair and replacment items such as appliances and windows.  It is not uncommon to have more serious issues like radon, mold, and potential gas leaks.  Correcting issues found in a pre-inspection prior to going under contract can save a lot of time, trouble, and money.  Sellers who are not on a dealine can ofter repair items at a lower cost when they have the time to shop for the right trade person, or perhaps make the repairs themselves.

A recent change in the Colorado Real Estate Contracts now requires that inspection resolution items become an amendment to the contract.  Contract amendments are submitted to lender scrutiny which may lead to a rejection of the mortgage or a delay in closing.  Having fewer inspection resolution items can lead to a smoother transaction.

For more information about pre-inspections, please feel free to contact our office.

Don Ricedorff, Broker Associate, GRI, CRS, CCIM, ABR, RSPS, CDPE
Direct:  970-375-7014
Fax:  970-259-5007

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