History has proven that homes in a favorable location with the best curb appeal and nicest features attract the most interest among buyers. And, why not?
Once the property is on the market, buyers circle the area – both driving by and poring over the words and imagery on their search apps such as Property Tracker ® (available through the John L. Scott app) – to make a quick pass-or-fail judgment on the home. It’s quite surprising how often prospective buyers pass up a potentially fine home by “swiping left” after a first impression and not bother to have a look inside. (But that’s not the point of this blog post.)
In any housing market and any local economy, the best first step to selling a home is objectively evaluating the property and considering improvements that will turn a negative issue into a net positive. Being unbiased about the condition of the home can be challenging for an owner, and that’s why we tend to ask sellers to consider seeking a pre-market inspection to receive an independent assessment of the property.
Naturally, a real estate agent can help provide an honest opinion based on his/her experience and knowledge of the market. After all, many agents/brokers have been inside hundreds of homes and produced comparative market analyses (CMAs) on dozens of properties each year. But getting that added layer of expertise is arguably one of the best decisions a seller can ever make before putting a home on the market.
The home inspection, which usually costs between $250 and $500 (paid at the time of the service), will include a comprehensive report on the condition of the property. The report will allow a seller to decide what improvements to consider that could increase the home’s value, as well as what other items should be tackled before marketing the home for sale. It’s all about getting as much for your home as possible, right?
Here are five things to consider when having an inspection performed:
- Focus on key elements of the home, particularly the electrical condition. Is the system up to code and able to handle modern appliances? With the increased use of technology in the home and an expectation of modern conveniences, the place really should be up to snuff with its electrical system before selling the home.
- Be sure to get in writing the condition of the roof and chimney (if applicable). What’s the age of the roof and its estimated lifespan? Is the chimney dirty, leaky or otherwise damaged? It’s possible the inspector will suggest a specialist to check on the chimney if there’s any area of concern or doubt.
- Are there signs of cracking or settlement of the foundation or exterior items in need of attention? Issues with the foundation are a high priority and may require extensive work. Matters related to a cracked front step or loose plank on the deck are typically half-day fixes and should be addressed by the seller.
- A common issue that is sometimes difficult to spot is, well, spots. Mold and mildew damage can be a major headache, especially when a homeowner fails to notice the extent of damage. This is a serious matter – a health issue for many – and should be remedied before selling the home.
- Any sharp-eyed buyer will notice a leak or outdated plumbing fixture and seek a solution to the water system before closing a deal. If the home inspector identifies faulty plumbing – inside or out – it’s wise to get it fixed to maintain a “healthy home.”
The homeowner should attend the inspection and take notes – but don’t get in the way of the inspector. Understand the inspector’s concerns to better prepare yourself for the forthcoming report.
It’s a good idea to share a copy of the report with buyers seeking to make an offer and, for full transparency, inform them of repairs made since the inspection. This info may help a buyer better understand the seller’s list price. A seller that takes the initiative may also prompt buyers to waive their own inspection and speed up the sale. (Sellers are not required to allow pre-inspections and buyers are not permitted to request any inspections if their offer includes the inspection contingency waiver.)
Some sellers go the extra mile and get the home appraised to determine market value. This will allow you and your real estate professional to confidently price the home. (Buyers seeking a mortgage will also be required to have the home appraised for the sake of protecting the lender. More on that here.)
Finally, it’s also a smart move to get a CLUE (yes, pun intended!). A CLUE (Comprehensive Loss Underwriting Exchange) is a report that allows a seller to be completely honest about the condition of the property to buyers, preventing unwanted lawsuits after the sale of the home. It contains about seven years’ worth of auto and, the key, home insurance history on a person’s property. Insurers use information from the report to see the types of coverages and claims history of a policyholder and then apply those details in determining a customer’s insurance risk level. Only a homeowner may request a report on his/her property (not the buyer). A CLUE can be obtained by an individual – free once a year – either online or by calling 866-312-8076.
Armed with unbiased, expert assessments – and fact-based details about the history of the home – will position any property well when it’s time to sell…and it’s nearly that time!
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TIP TO SELLERS: Change the privacy settings on your Facebook page, so only friends can see your posts. We don’t want potential buyers learning through a general search that you just got a big promotion at work, are moving across the country or are buying a new house because you’re having a baby. All of these items can hurt your negotiation position. Sure, mention that you’re selling your home – but don’t explain why on Facebook.