Imagine what happens when there is not a pre-listing inspection. The buyer contracts for the home with a provision for professional home inspection. When it is made, there could be things that the buyer didn’t expect or even, anticipate. If it doesn’t trigger an action to terminate the contract, the buyer will inevitably, ask the seller to make all the repairs.
When presented with the buyer’s request, the seller may take the opposite position of not wanting to do any of the repairs. The buyer could accept the property in its “as is” condition or negotiate the repairs or a reduced price with the seller.
Any experienced agent can tell you that sometimes a mutually agreed negotiation is reached and other times, an impasse is met that cannot be resolved. The contract is terminated, and the house has to go back on the market but this time, a disclosure has to be made to all parties looking at the home which may deter showings.
Taking a pro-active approach, by obtaining a pre-listing inspection, the seller can find out about things that will probably show up in a buyer’s inspection. They can get them repaired before the home is shown and it will help the buyer feel more confident with the home. Another option would be to disclose them as not working and make a price adjustment, either way, the seller is in control and is taking a position of transparency with potential buyers.
In some cases, the pre-listing inspection may show things in working order that the buyer’s inspection indicates as needing repair. With two disinterested parties having opposing opinions, negotiations have a more likely chance for a mutual agreement.
Disclosing things that are not in working order can reduce liability in the future. Some deficiencies with the home are not discovered prior to the closing and the surprise issues could lead to liability. The pre-listing inspection by a professional combined with the seller disclosing it properly can reduce potential liability.
For the small investment in the pre-listing inspection, the benefits are well worth the expense. For example, it can provide opportunities to take care of potential issues on your own time with control over who does the work at a certain cost. For a qualified do-it-yourself type homeowner, some items may lend to offering you to perform the work before a buyer puts the house in contract. This can save a lot of money and time without needing the work of a contractor, although it can be risky to take on the liability if repairs are not performed correctly and to code.
You and potential buyers will also have a better idea of the condition of your property and know what to expect. You can present the property in a transparent way that will build confidence with the buyer. You’ll avoid unpleasant surprises as well as possible delays or terminations. Starting over as a seller can be a very challenging hurdle to overcome depending on the market conditions. Pre-listing inspections can lead to faster sales and satisfaction for everyone involved.
For more information, download the Sellers Guide.
The convenience of selling your home without the hassle of getting it ready, putting it on the market, showings, open houses, negotiations and repairs comes at a cost … a significant part of your equity.
The companies, referred to as iBuyers, that buy homes from sellers are for-profit organizations. They expect to make a profit from sellers who are willing to discount the proceeds they’ll realize as an alternative to the conventional method of selling a home for people who need a quick sale.
The promotions for these companies generally state that you can receive a cash offer in a few minutes after putting your address online. The discount can be between 10 to 18% compared to normal selling costs from 6 to 9%. The cost to a person with a $100,000 equity could be as much as ten thousand dollars.
Even after you have accepted an offer, there can be contingencies in the contract that allow the company to inspect the home to discover the condition and reassess the offer to possibly make even more deductions. If the seller isn’t willing to accept them, the buyer can withdraw from the sale without penalty.
This appears on the surface to be a friendly, accommodating service but it can be an adversarial situation. The seller wants to maximize their proceeds and the buyer wants to buy it as cheap as possible.
Compare this to working directly with a real estate professional acting as your agent. They have to put your interests above their own. They have a fiduciary duty of care, integrity, honesty and loyalty in their dealings with you. Other duties include confidentiality, disclosure, obedience and accounting to the seller.
In this traditional model, your agent will provide you with the facts of what homes have sold for in the area and their opinion and recommendations on what the most likely sales price will be. Your agent will provide you an estimate of the sales expenses based on different sales possibilities.
They can advise you on work to be done prior to putting the home on the market, staging so your home will show at its best and estimate the time it will be on the market. Based on low inventories in some price ranges, it could be surprisingly short.
As an owner, you made an investment in your home in cash and maintenance. You are entitled to maximize your proceeds based on the risk taken to purchase a home instead of renting. The convenience of a quick offer has a cost to it. You need to compare the two alternatives to see which one benefits you the most based on your individual situation.
For more information, download the Sellers Guide.
If you would like any professional residential Real Estate advice, contact us at Paramount Real Estate Services. 1008 12th St. SE Salem, OR 97302 503-851-1645
Also, to mobilize us right away to help you move, visit us here:
We are so excited to be coming on to our 10 year anniversary here at Paramount Real Estate Services! We dug through the archives to find this gem back in 2009!
SPORTSMANS LOG HOME PARADISE! Parklike setting across the road from the little North Fork River. Seasonal creek and pond, sm. barn, fenced pasture, sm. orchard, and shed. This beautiful log home is very well kept with A/C, open kitchen to dining area, LR w/ wood stove and lg windows throughout letting in plenty of light. Lower level can be huge master suite w/ beautifully updated bath, living area, library, walk in closet, exercise area and private office. Solid cedar logs refinished and sealed.
SPORTSMANS PARADISE! On the way to the Cascade Mountains, Hoodoo Ski Resort, Elkhorn Golf Course, Detroit Lake, and Central Oregon. This Beautiful Log Home sits on a parklike setting of over 4 acres across the road from the little North Fork River of the Santiam River! Seasonal creek and pond, small barn, fenced pasture, small orchard, and shed. This home is very well kept with A/C, open kitchen to dining area, Living Room with wood stove and large windows throughout letting in plenty of light. Lower level can be huge master suite with beautifully updated bathroom, living area, library, walk in closet, exercise area and private office. Solid cedar logs refinished and sealed. Enjoy fishing, hiking, hunting, skiing and all other outdoor activities near your own Log Home! Visit our Virtual Tour here: https://sites.google.com/site/25758taylorparkrd/
6+ Bedrooms, 4 Bathrooms
5943 Square Ft
Listing # 652659
3 Bedrooms, 2 Bathrooms
1249 Square Ft
Listing # 651366
Listing courtesy of COLDWELL BANKER MOUNTAIN WEST.
4 Bedrooms, 2.5 Bathrooms
2894 Square Ft
Listing # 651356
Listing courtesy of ERA NORTHWEST PROF REALTY.
3 Bedrooms, 3 Bathrooms
2539 Square Ft
Listing # 651381
Listing courtesy of WINDERMERE PACIFIC WEST PROP.
3 Bedrooms, 2 Bathrooms
1420 Square Ft
Listing # 651142