He wants to make his home more attractive to buyers, and this will make it LESS attractive.
As a buyer's agent, I could not, in good conscience, recommend to my buyer that they spend the money on an inspection, not knowing if we could even reach an agreement on price. Your seller needs to understand that the purchase contract agreement of price, basically tells him, that "yes, we are willing to pay this amount... presuming that we don't find anything major in the inspection".
And then he can chose to be as stubborn as he wants regarding stonewalling renegotiations depending on what the buyer might ask for. And the pre-inspection might be a great idea for this particular seller, to let him know what he might anticipate them asking for.
I do not think it is necessary to make the transaction more complicated & you will the risk of scaring off what few potential Buyers there are in the market. (ask your Seller to put on their "buyer hat")
I have had good luck with my Sellers performing their own home inspection (by a reputable home inspector) We make the results available to any prospective Buyer. Leaving the report out in full view with extra copies. Also, we indicated what repairs have been corrected (with receipts for the work).
Yes it does cost the Seller a few hundred dollars + the repairs upfront, and these are most likely repairs the seller is going to have to make anyhow. (pay now or pay later)
The advantages are:
It says to the Buyer, "I'm being honest & upfront with you...." and people tend to respond that kind of openess.
This is also one of the few homes that has been inspected, making it stand out in the Buyers mind.
Eliminates greedy Buyers asking for alot of $$$$ to fix minor repairs.
So far, I have not had a deal fall apart, or the Buyer ask for credits after they have performed their own inspection. In the long run, my Sellers have saved money on the repairs, because it allowed them time to shop around & we do not incurr the additional cost of having the repairs done on a short schedule.
Best of luck,
I'll keep this short. I would recommend that the seller address any issues that could come up on a home inspection prior to negotiating a sale price. He may want to get a pre-listing inspection for his own benefit and not that of any prospective purchaser.
There really are buyers that use the option period to renegotiate the price and all terms of the contract REGARDLESS of the inspection outcome. It's not right but it happens...Nothing you can do about it other than handle the situation as it comes. Handle it with care (aka: "finesse") and everyone comes together and it all works out...
Having your seller do an inspection on his own: Would this put your client in a situation of liability should the inspector "miss something"? Could work to his benifit or put him in the line of fire.
Judy....Seems like the real question on the table is whether or not you should be working for this client.
Which of you is the expert on sales and negotiation?
Is your client not confident with your level of expertise... or is he not comfortable in the passengers seat?
(... or perhaps there is something about the home the seller is not disclosing to you ...that he's praying will not be caught during inspection....but counting on having to take a hit if it is.... )
Best of luck, LD Menkemeller, Dallas TX
I know this answer is a bit late but I thought this may help as food for thought. I'm a Veteran Home Inspector in NY and would caution Real Estate Agents suggesting Pre-Listing/Sale inspections for Sellers in order to display their report to Buyers. You may be opening yourselves up to lawsuits and should consult with a Real Estate Attorney.
If a Seller uses a Pre-Listing inspection report to fix everything and keeps the report private then it shouldn't cause any problems. HomeBuyer's should still get their own inspection performed to limit your liability.
Let's look at this example: A Seller has a Pre-listing Inspection and doesn't want to fix everything but just disclose what's wrong and let's say the Inspector misses something significant (I follow-up many times where prior inspectors have missed critical defects), now the Buyer who relies on that report, discovers the missed defect after closing - it could lead to a potential lawsuit claiming foul play. You know an Attorney will name you, the Inspector and the Seller in the lawsuit. The Seller will say you told them to get the inspection and show prospective Buyer's the report. Try proving your way out of that and about $3000.00 in defense costs later. Can you afford it in times like this?
IMHO - Encourage only Buyers to do the inspections unless you know a Seller will keep it private as an informational report or to make some 'true' repairs based on the findings and not just to take cost-conscious 'swept dust under the rug' measures.
Pre-listing inspections are just potential trouble! As a Home Inspector, I will not perform them for Sellers.
Be careful, times are tough now and disgruntled Buyers will be looking for someone to pay for something.
Perhaps this buyer is unfamiliar with the standard process? You could simply educate him on the way deals traditionally work. Most often these unusual scenarios are due to lack of RE education. Buyers may not realize they have rights and the option to walk away from the Termite infested house built on a sewer main. Once you explain things to them I am sure they will be more comfortable. Good Luck!
The buyer may also save the $300 if he decides he does not need his own inspection.
Of course, there may be issues with FHA and termite inspections, etc depending on the loan program.
Just an idea. Thanks, and Good luck,
Hope this helps and happy holidays,
Randall Sandin, email@example.com
Charleston Pier Partners - Carolina One Real Estate
843-209-9667 (Direct) 843-202-8928 (Fax)
If I had a buyer (sung to "If I Had a Hammer") I'd have them make an offer on their own terms ignoring your seller's preference and let the seller respond from there.
I usually counsel my buyers to make their offer with the assumption that everything is in working order as it should be. Then if the inspection finds anything wrong, the credits/renegotiations are justified and the deal usually goes smoothly from there.
Given the situation (and the seller wanting (potentially) multiple buyers to pay for inspections prior to negotiations...) I'd also recommend that the seller get their own inspection and provide it to the prospective buyers before negotiations start.
It could actually come across as though your seller is looking to get a free inspection report from a buyer he assumes will be disgruntled after seeing it...(if there's nothing wrong, there's nothing to re-negotiate, right?)
Best of Luck!
on Bank Owned AS-IS nice properties after acceptance. The Bank reluctantly signed off and compensated the buyer several medium and minor repairs. Conventional wisdom says no. The reality is you have all the facts and the seller will consider it and weight their choices. In this case, Bank does not have a lot of time left going through another candidate. Bank got rid of the property and the buyer got additional monentarily incentive. A Win -win.
While it's true no seller wants to renegotiate the deal after a home inspection, it happens all the time. One way around that issue is to do a pre-sale inspection. Paid by the seller and then supply a copy of the inspection with whatever concessions or repairs the seller is willing to do as a part of the selling package.
When the "real estate bubble" was still inflating, many sellers offered their homes as is, with inspections for the buyers information only. It would seem to me that if your seller had an acceptable inspection to show a prospective buyer, the negotiations would pretty much not be subject to additional discussion based on undisclosed or unknown property condition.
Just a thought--good luck.
An interesting proposition, but not one that I would advise my buyer clients to pursue, having them incur inspection costs without an accepted offer, given the available inventory. I would recommend the seller do their own pre-inspection instead, disclose what needs to be disclosed, and price the home accordingly.
Perhaps you could meet in the middle with one of these:
Disclose on listing sheet something like "seller prefers buyers to do their due diligence on property prior to making an offer" - referring to a pre-inspection. That way your client won't have to take the property off the market.
Another idea would be for your client to conduct their own inspection now so they know everything there is to know about the properties condition, you can price it competitively based on the findings and sell it "as is." Might be money well spent: no surprises for the seller and could potentially give the seller the edge in the negotiation since you are priced better and organized to move quickly.
Just a few thoughts. Hope that helps.