Pre-Listing Inspections Makes '"CENTS"

Congratulations, on your decision to sell your home. As you have already discovered, selling your home can be an intimidating task, but with the right amount preparation and attention to detail, you can maximize your house value and minimize your market time.

IT IS A FACT:
“HOMES THAT SELL THE FASTEST, ALSO SELL FOR THE MOST MONEY”
In today’s housing market, buyers can afford to be choosy. A pre-listing inspection provides you with some powerful advantages that can help set the stage for a fast, successful sale. Afterall, the elements that motivate a fast transaction are the same elements that sell homes for top dollar.

A Pre-listing inspection makes “Cents”
Each year thousands of homeowners needlessly lose thousands of dollars when selling their home. But they don’t lose the money for reasons you might think. This money is lost because they unknowingly “left it on the table”…. for the buyer to pocket. Simply put, they failed to recognize the hidden profit potential in their home. Some homeowners never discover that certain small, inexpensive repairs to their existing home can generate many times their cost in additional home value. A pre-listing home inspection puts you, the home seller, in control of the transaction by providing a value added benefit to your property with proof of the home’s condition. It helps promote assurance and trust to your prospects that a qualified professional has inspected your home. A pre listing inspection will help you decide to correct problems or to adjust your sales price to reflect the estimated repairs. Buyers do not like surprises; it makes sense to eliminate any unnecessary complications in the selling process.

In this competitive market, you want to position your home in the most favorable light. Having a pre-listing inspection report available with highlighted repairs can be used as a selling tool when buyers come to visit. Being pro-active allows you the time to make the necessary repairs without the last minute complications and emotional stress associated with the negotiation process. Think about it.... it makes "cents" in the end.

Prepping for a Foreclosed / Vacation Home Inspection

A foreclosure home may offer a great investment opportunity for a home buyer/investor with the resources and knowledge to professionally renovate the property; however, it will present some unique challenges when the time comes to inspect the property. Typically, these homes have been vacant for long periods of time and are sold in “as is” condition. In many cases, the homes have been found to have deferred maintenance issues from the previous owner. The lack of physical resources to perform general maintenance on a home for an extended period of time can result in a significant amount of qualified deficiencies. Even the best of home inspectors can miss damage that is NOT apparent, but may be lurking behind walls and under floor coverings. Leaking water, vermin activity, and rot can occur in areas not visible to even the most thorough inspector without tearing out walls, etc. Additionally, we have seen acts of intentional sabotage; whereby, the previous owner carries a desire for revenge and a poor attitude of: “if I can’t have it, no one will”. All this being said, preparing for and performing the home inspection on these properties introduces some new challenges for the Realtor, buyer and the home inspector.

The main issues in preparing the home for the inspection are:

• Verification That The Utilities Are "ON" Inside The Home Since these homes have been vacant for an extended period of time, a bank will shut off all the utilities at the street and the home may be winterized. This means that the water has been turned off inside the home and the water pipes have been drained, toilets have been flushed, and antifreeze may have been poured into the sinks, tub/shower, toilet bowls and tanks. If the property has a hot water heater, this has also been completely drained. In order to perform a full inspection, all utilities must be operational inside the home. The utility companies should be notified and any unsettled disputes of monies owed may be the responsibility of the new owner. Once this is completed, the main shut-offs inside the home should be turned on by insured, qualified professionals (plumber/electrician, handyman etc.) It is strongly recommended that the buyer or Realtor do not accept this responsibility, as there is an exposure to liability in the event of a system failure. Finally, know that few inspectors are willing to take on the risk of being the one who “turned on” the trouble.
• Access to Locked Areas Be certain that prior to the inspection you can gain access to all locked storage areas, garages and out-buildings. Access to these areas is necessary to perform a complete inspection. At best, the inspector will report these areas as “inaccessible” or “not visible”, leaving the client hanging out to dry with regards to what surprises might be hidden.

Your client will be best served by careful planning and preparation in securing the ability to inspect the home properly… if that means a delay of a couple days, so be it … after all, fewer surprises, will generate future referrals. GOOD SELLING !!

Top 10 Frequent Home Problems

In the most recent survey of its members, the American Society of Home Inspectors (ASHI) compiled the following list of the most frequently found problems in the homes they inspected:

1. Improper Surface Grading/Drainage

This was by far the most frequently found problem, reported by 35.8 percent of the survey respondents. It is responsible for the most common of household maladies: water penetration of the basement or crawl space.

2. Improper Electrical Wiring

A significant number (19.9 percent) chose this item as the most common home defect, which includes such situations as insufficient electrical service to the house, inadequate overload protection, and amateur, often dangerous, wiring connections.

3. Roof Damage

Although reported by only 8.5 percent of the respondents as the most common problems, roof leakage, caused by old or damaged shingles or improper flashing, was considered by ASHI members to be a frequent problem.

4. Heating Systems

Problems in this category include broken or malfunctioning operation controls, blocked chimneys, and unsafe exhaust disposal.

5. Poor Overall Maintenance

Even the novice home buyer is usually aware of this situation, demonstrated by such signs as cracked, peeling, or dirty painted surfaces; crumbling masonry; makeshift wiring or plumbing; broken fixtures or appliances.

6. Structural Problems

As a result of problems in 1 or more of the other categories, many houses sustain damage to such structural components as foundation walls, floor joists, rafters, and window and door headers.

7. Plumbing

Though not ranked by any respondents as the most significant problem, plumbing defects still rank high among the house problems encountered, and include the existence of old or incompatible piping materials, as well as faulty fixtures and waste lines.

8. Exteriors

Flaws in a home’s exterior, including windows, doors, and wall surfaces, are responsible for the discomfort of water and air penetration, but rarely have structural significance. Inadequate caulking or weather stripping are the most common culprits.

9. Poor Ventilation

Perhaps due to overly ambitious efforts to save energy, many home owners have “over sealed” their homes, resulting in excessive interior moisture. This can cause rotting and premature failure of both structural and non-structural elements.

10. Miscellaneous

This category includes primarily interior components, often cosmetic in nature, which were not found frequently enough to rank individually in our survey.