How a Home Inspection Can Make Sellers Money On Their Sale

Summary

A pre-market home inspection is a valuable step in the home selling process because it helps sellers maximize their equity and negotiate effectively with potential buyers (especially in a multiple offer situation, as buyers may waive inspection periods or repair requests).

The pre-market inspection allows for negotiating repairs while multiple buyers are still interested, giving the seller more leverage.

With a home inspection, you are able to identify and address any issues with the property before it's listed, saving the seller money in the long run. This strategy prevents sellers from losing equity because of buyer demands for repairs after a deal is made.

You want to work with a knowledgeable home inspector who can help you figure out which repairs or improvements are needed to increase the home's perceived value. Disclosure of the inspection and completed repairs to potential buyers can lead to a more attractive and smoother selling process.

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Full Transcript

So all of this works together to make the selling system work. So we, that first weekend is we do a grand rollout of your home to the market. Ok? And it's gonna be this, this and this. So all I'm doing is highlighting the things that I do that matter if there's anything you give as a free bonus.

Plus before we do all of that, I'm gonna highly suggest that we do a pre-listing home inspection on your property. Can I explain what that does? Ok. This is probably one of the things that will save you more money than anything else you will do that will maximize your equity while we're getting ready to get it staged, we're gonna have a home inspection done.

Now, if you have a home inspector you want to use, that's cool or you can use mine or I can give you some to choose from. But I've got one that I've used on my own property and a lot of my clients have used them. Love them. I can't recommend them because I'm not allowed to recommend a home inspector. But he's my home inspector. If you want to use him, you can use him. If you don't, you can pick it up.

But here's what we do. We have a home inspection done. This is kind of like a certified pre-owned car. Then we're gonna have the house completely inspected, find out what's wrong and then he will help you and we'll work together to decide what are the items that need to be repaired because once those are repaired now, in the disclosure, we're able to disclose what has been done to this house to make it ready for the next homeowners for the buyers.

And here's what that does two things. One, the house has more perceived value just like you don't buy a used car, you buy a certified pre-owned car, why all this stuff has been checked and fixed, right? So we're gonna do that for them.

Well, how much money we have to spend? Great question. You're gonna spend significantly less money doing repairs on the front end than you will have to spend on the back end if we wait until after you have a contract on the property and you can explain that if you need to. Ok. So it's gonna do that.

The other thing it's gonna do is when we're negotiating the offers, you're able to already disclose everything that's wrong with the property plus the inspection and the inspection report. So this gives us the opportunity especially when we're in a multiple offer situation to get buyers to often waive any inspection period or repair requests. So they are legitimately accepting the house in as-is condition and they may still have an inspection done. If there's any surprises, we'll still have to deal with it.

But what this does is it eliminates you losing equity once we have a deal on your house. And this literally saves my sellers typically thousands and often tens of thousands of dollars because we go in on the front end to prevent buyers from coming back at you and beating you up on your price or taking money away from your pocket by demanding all kinds of repairs. And it lets us negotiate repairs while we still have all the buyers at the table.

You guys understand how powerful this is. I got five offers and I can deal with repairs while I'm negotiating five offers, how much leverage does that give my seller compared to? We got five offers, we accept one offer, get rid of the other four. And now it's just me and the buyer and they come in and they have their inspection done and there's these problems and then they come in and say we want you to pay it, fix that, that, that, that and we want you to fix that and we want a repair allowance for that. Now, what's the leverage does your seller have? None? They don't have any leverage. So they are now giving away their equity.

This is one of the most important and powerful skills you will learn in negotiations for sellers is understanding the power of a pre-market inspection. And if you got a good inspector, you work with them, they know you know what you're doing. They will typically let your seller pay for the inspection at closing. You can also pay for the inspection if you choose to as a part of your value package that you give them. Ok. Which means I'm gonna pay for the inspection. You're gonna pay for the repairs and we'll work with the inspector because here's what the inspector knows how to do the inspector because he works with transactions all the time with buyers and sellers. He knows what needs to be fixed on a house to make it sell for the most, to alleviate buyer fears, to make sure lenders don't have any problem with it if it's an FHA or VA, and he knows what it typically costs for each of those things. He knows what items are just code that really are irrelevant.

So his job is not to cost you money. His job is to help save you money. Does that make sense? Perfect. So the value of all this is huge. So if I do that, ok, then I'm explaining the value of the stuff that I am doing above and beyond. If that's important for me to help establish, if I'm competing with another agent, how, what we do is different than what their agents do and how we actually are able to get them more money in their pocket than the other agent can get. This is how you do it.

10-day selling system pre-market inspection, get rid of repair requests after the property goes into escrow, get rid of contingencies after the property goes into escrow. This is how you get deals closed and you stop having the 15% fallout because you guys know right now 15% of transactions are not closing because deals are falling apart.