There are a lot of details and preparation that go into selling a house. It’s always to the seller’s advantage to be one step ahead of a potential buyer and their agent when selling your home.
If you have an older home and are not sure of it’s condition, then yes a pre-sale home inspection is extremely beneficial. A home inspection before you sell can save you time, money and the hassle of putting it back on the market because of a bad inspection report.
Reasons For Getting a Pre-Listing Home Inspection
The biggest and most important reason is a home inspection will show you what you need to do to get your house in tip top condition and ready to sell. The home inspection will point out problems or discrepancies in your house that you may not of noticed or forgotten about. These problems can cause contract renegotiation’s, delayed closing dates, and frustration finding a good contractor to do repairs on short notice.
Most buyers will get a home inspection when purchasing a home. According to the American Society of Home Inspectors (ASHI)
- Seventy-seven (77%) percent of all recent home buyers obtained a home inspection prior to the purchase of their homes. I would assume new construction and house flipping makes up most of the other 23%.
- Of these buyers of home inspections: 81% had a contingency placed in the contract for the inspection, 79% attended and participated in the home inspection, and 97% believe that the home inspection was a good value for the price they paid.
- According to realtors, eighty-four (84%) percent of buyers requested a home inspection as part of the purchase contract. Nearly all realtors (99%) recommend that the buyer get a home inspection, with 92% saying they ALWAYS make this recommendation.
- Realtors strongly agreed (4.51 out of 5) that the home inspection increases buyer confidence in their purchase, and they agreed (4.29 out of 5) that the home inspection increases buyer confidence in their real estate agent/broker.
Your house will sell quicker and the buyer will have more confidence in their decision to buy your house. The inspector will point out obvious things like peeling paint, wood rot or loose receptacles that a buyer may notice. You only have a chance for a good first impression once.
If the items in the home inspection are repaired, the excellent condition of the house should bring in more money. You can ask a higher price when you know it’s move in ready and doesn’t need repairs. There will be a sense of pride that the people purchasing your house won’t have any problems.
What’s Inspected and What Does the Inspector Look For
The home inspector will look at the interior, exterior, attic, slab, roof, basement, water drainage, HVAC systems, appliances, gas, electrical and plumbing. Basically everything!
The most common problems I’ve seen on reports as a realtor:
- Wood rot- This is usually a major issue because wood rot can affect whether someone can get a mortgage loan. In my home state of Florida most lenders require a WDO inspection also known as a termite inspection. To see a post I wrote on WDO inspections click here.
- Roof– Damaged or missing shingles, rotten soffits or fascia, rotted rubber boots around vents. Ceiling stains are always a warning sign of past leaks. FHA and VA usually require 2 years of life left on a roof but most lenders I’ve dealt with require 5 because of the future expense.
- Electrical– The GFCI ground fault by sinks and outside go bad all the time and don’t trip when tested. Smoke detectors not connected or functioning correctly, double tapped circuit breakers and junction boxes missing covers are common.
- Plumbing– Dripping faucets, loose toilets, stains and rotten wood under sinks. The age of the water heater is listed in the report. Life expectancy is 8-12 years.
- Appliance and HVAC– All appliances should work and will be checked. The air conditioner/heaters temperature difference and coil are always checked, change the filter before inspection. They will also give an estimate of the life expectancy of the HVAC system. A/C and heat pumps have a 15 year life expectancy.
- Windows- On older houses windows loose their seal and fog up, locks not working, not able to open windows may be painted shut and windows not staying up when opened.
- Code Violations– Although they are not contractors most inspectors have a good understanding of national and local building codes. Some violations may be grandfathered in meaning it wasn’t part of the code when your house was built so it may not apply. Check with local building officials or websites.
The home inspector will check much more than what I have listed above, these are the common things I see inspection reports.
Should You Repair Everything The Inspector Finds
Some items will be basic and easy to repair. Many of the items the inspector finds will be obvious like missing or cracked electrical wall plates, burned out light bulbs, fans wobbling and out of balance. Home Depot, Lowe’s or ACE Hardware will have what you need to do minor repairs. YouTube is a great source of how to information on repairs.
Wood rot is something that definitely has to be taken care of. As mentioned before FHA/VA and HUD backed loans require a clean wood destroying organism (WDO) report. Some areas are small and can be filled with wood patch, others will have to be cut out and replaced.
Safety, especially electrical issues need to be addressed. People get freaked out when there are electrical issues even if they’re minor. They picture electrical fires or a child being electrocuted. Battery operated smoke and CO2 detectors are cheap and easy to replace and install.
If there are larger items that you can’t repair yourself, get a couple estimates and evaluate if its worth the repair or not. If you do have estimates and the issue is brought up you have done your home work and can settle on a price. You usually won’t get the same amount back in sales price as you put into a major repair or remodel.
Remember to pay attention to detail and do the little things. It has been my experience during showings, people notice the little things like fresh caulking, clean fan blades on a ceiling fan, new door knobs, and painted walls without nail holes.
Other Inspections or Tests a Buyer May Want or be Required to Get
The home inspector is very thorough but usually performs a general home inspector. There are a few inspections or tests a potential home buyer may want or be required to get from the mortgage lender.
If your house has a septic tank and drain field, the buyer will probably ask question about it. When it was last pumped out, serviced or replaced. Hopefully you kept good records, if not ask the company you used to give you copies. I have had lenders ask if the septic tank had been pumped out within the last 5 years.
Wells are always a concern especially if it’s the primary water source. For financing through the VA, FHA, USDA, or RD, water tests are required if the property is served by a private well. To read more about the testing procedure look at this pdf from watertestingservicesllc.com
Mold is a problem in rainy hot humid climates. If it’s noticeable you may need some testing to make sure it’s not a problem. After hurricane Michael in Florida just about every house that had damage had issues of mold and needed remediation.
A couple rare tests are radon gas and some areas require soil sample tests. Radon is not an issue in most states. A google search will tell you if they are required in your state. I noticed Home Depot had a cheap Radon test kit for a little over $10. It’s not common in most areas and not required to test for selling a house.
Typically any testing for septic, well and other things will be paid by the buyer because the mortgage lender, FHA, VA or HUD backed loans require it. If a major problem is discovered then the buyer and seller would have to agree on who will be responsible for the repair and possibly renegotiate the contract.
Final Thoughts
Home inspectors are paid to find problems in a house and I can guarantee you that even if your home is perfect they will write up 2-3 items. There are steps that you can do to prepare for a seller or buyer home inspection. Here is a good article from Moving.com, most are basic house maintenance.
Make sure your home inspector is licensed and insured, this varies from state to state. The American Society of Home Inspectors (ASHI) is a respected home inspector association. Check out this WIN Home Inspection site, it has good information and has a search for inspectors.
A typical home inspection can range from $300-$450 depending on the size and location of the home being inspected. A verbal report after the home inspection is completed may be cheaper than if it has to be typed and emailed. Most written reports come with pictures which is very helpful in locating and identifying the problem.
One negative about getting a pre-sale home inspection is your inspector may find issues that the buyers inspector may not have. This of course is a gamble but will pay off in the long run. It’s cheaper to do the repairs yourself before listing your home then negotiating with a buyer on the repair after it’s under contract.
Realtor’s can provide you with a list of home inspectors they trust and have worked with in the past. If your working with a Realtor I would have them do a honest walk through of your house with you. They have experienced many transactions and home inspections, after all isn’t that what they get paid for!