One of the toughest discussions I have with seller clients is over pre-inspections. They often just don't see the point of doing something that the buyer traditionally pays for anyhow.
I recently had this discussion with a client and was unable to convince him that it would be to his benefit. His argument was, "None of the people I talked to had a pre-inspection...I don't see the point of spending $400." My statement back was, "Sure, they didn't have one. Not all agents know to recommend them. But did you also ask them how they felt while waiting for the inspection contingency to pass or if they ended up re-negotiating the price or paying too much for repairs the buyer wanted?"Sure enough, we had two big surprises on their inspection and now the buyer is nervous and the seller is possibly facing big repair bills. All stuff that would have been good to know before even going into negotiations.
Here are the benefits of sellers having a pre-inspection:
1) Get It Fixed On Your Terms
Knowing about problems ahead of time allows the seller to either price the house accordingly for needed repairs or to fix them ahead of time. If the buyer discovers the repairs during negotiations, THEY now have the power to negotiate how it gets fixed. Typically, buyer and seller both get bids (try doing that on short notice) and the average of the bids gets credited to the buyer off of the purchase price. Or the seller must rush to get it fixed before closing.
Knowing these problems ahead of time, the seller has time to research and get reasonable bids, save money and by having it fixed ahead of time, it becomes a NON-ISSUE to the buyer.
2) Removes Anxiety & Stress
Ask any recent seller about the home inspection period and they'll tell you that it is a nerve-racking experience waiting to hear what the inspector finds. If you've already had the inspection for yourself, you know that there will be no surprises. Quite a few times, I've provided a good home pre-inspection to the buyer and they didn't even bother with their own inspection!
3) Confidence in Negotiations
Often sellers want to keep a "buffer" in their price, "Just in case something comes up in the inspection." They worry that if they accept a lower offer, the buyer will still try to get even more money out of them after the inspection. This limits their negotiations and could risk losing a buyer over a couple thousand dollars.
Knowing exactly what to expect from the inspection gives more freedom to negotiate the offer. The buyer may think they'll get more off the inspection, but the seller already knows that isn't going to happen!
It also removes the buyer's inclination to randomly make a lower offer, assuming that there will be issues with the home inspection. Confidence in the condition of the property, because they have a copy of a recent inspection, can bring in higher offers.
4) Legal Protection
The best thing for a seller to do is to disclose EVERYTHING about their property, to avoid litigation for non-disclosure, down the line. If you provide a copy of the inspection to the buyer and disclose those defects on the Sellers real Estate Condition Report, a buyer certainly would have no case for non-disclosure - a seller wouldn't be expected to have more knowledge of home construction than a professional home inspector.
The $300 - 400 it costs for a pre-inspection could save you THOUSANDS of dollars in higher offers and buyer renegotiation. It's definitely worth the investment!
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