Most sellers think of a home inspection as something buyers do. It isn’t. A listing inspection is one of the smartest investments a seller can make — and one of the most overlooked.
You Don’t Know What You Don’t Know
Very few people know exactly what needs repair in their own home, or what’s about to need repair. Home inspectors are trained to find those things. Their reports can be daunting — a long list of items ranging from minor maintenance to significant defects — but the time to know what’s there is before you’ve committed to a price and signed a contract, not after.
Why a Pre-Listing Inspection Makes Financial Sense
You control the repairs. Without a seller inspection, you may not learn about a problem until the buyer’s inspector points it out mid-escrow. At that point the buyer will almost certainly require the work be done by a licensed contractor — even if it’s something so simple you could have handled it yourself. Get ahead of it and you choose how it gets done and what it costs.
You can shop around. If you’d rather hire someone than do it yourself, having time to get multiple quotes makes a real difference. Even if you decide not to repair something, having accurate repair estimates in hand gives you solid ground to stand on when negotiating a credit with buyers.
You’re far less likely to fall out of escrow. A transaction that collapses is a bad look — it typically leads to price reductions and extended time on market as buyers wonder what went wrong. Full disclosure of known conditions and likely repair costs, presented to buyers before they make an offer, dramatically reduces the chance of an unpleasant surprise derailing your sale.
You protect your price. Buyers who discover undisclosed defects mid-escrow are in a strong negotiating position — and they know it. They will estimate repair costs on the high side to protect themselves. A seller who can say “here is the inspection report, here are the repair quotes, and here is how we priced accordingly” is in a far stronger position than one who set an aspirational price with nothing to back it up.
What About the Cost?
Home inspections aren’t terribly expensive — typically five hundred dollars to several thousand dollars, depending on the size and complexity of the property. That said, sellers are often stretched financially in the period just before and during escrow, when deposits, moving costs, and carrying costs are all hitting at once.
COMPASS has a program called Concierge that can help. You can borrow up to $20,000 — or a percentage of your equity, whichever is lower — interest free, with an application fee of approximately $500. Repayment is due at closing. I think it is money very well spent, and a seller home inspection is exactly the kind of investment it was designed for.
If you’re thinking about selling and want an honest conversation about how to prepare your home for market, reach out. This is the kind of advice that can save you thousands of dollars and weeks of stress.
Judy S. Howard, Esq. is a Realtor Broker with COMPASS in Waimea, Hawaii, and a licensed Hawaii attorney with over 40 years of experience. She can be reached at judy@livinginwaimea.com or 808-885-5588.