Why Having a Home Inspection On Your Property Prior to Selling Is a Good Idea

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It goes without saying that before someone decides to finalize a sale on a house an inspection is an important part of the equation. But did you know that if you were to have an inspection performed on your own property prior to listing it, you would reap several time and money-saving benefits? That’s right – for homeowners who have decided to invest a few hundred dollars in advance of selling, there are several avenues through which they end up saving.  In this article, we shed light on the reasons why a few hundred dollars now can go a very long way later, most likely leading to a successful sale.

Advance Notice of Safety, Structural and Sanitary Issues

No homeowner wants to be faced with additional and unexpected expenses while in the midst of a pending sale transaction.  By taking the proactive measure of having a professional thoroughly review the structure, any concerns that could come up later as a red flag to buyers or a means to negotiate your selling price down – can be identified in advance and dealt with.  Concerns about safety, structure or sanitation are primarily required to be resolved prior to sale and with advance notice of any problems in these areas you can avoid costly last-minute surprises.

Added Value To Potential Buyers 

During a buyers’ market especially, buyers are savvy so they know that inventory levels are high and prices are low and they use that to leverage their influence on a sale.  When they come across a home that has been pre-inspected, not only will they be less inclined to skip over to the next property on their shortlist, but they will also appreciate the fact that any necessary repairs will have been done.  This allows buyers to focus on the more important aspects of the transaction without wondering if there are any unresolved issues lurking behind the scenes.

Dodge Replacements and Have Repairs Done As Needed

The last thing a seller wants is to have to shell out large amounts of money prior to selling their home.  With a home inspection done in advance of listing the home, major issues can be preempted with manageable repairs rather than needing complex repairs or expensive replacements.  Not to mention that buyers love to come into a move-in ready home with all repairs and issues taken care of.

Leverage At Negotiation Time

Having had a detailed and comprehensive inspection by a qualified home inspector in advance, allows the seller an edge when it comes time to negotiating a selling price. In situations when a buyer is aware of things that are not completely up to par they would use that to lower the selling price, repairs done to resolve outstanding issues in advance make that step unnecessary.  From a seller’s standpoint, it is a huge benefit knowing up front what the financial outlook is for the transaction.

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Nowadays, sellers need all the push they can get to stand out in a crowd of other sellers, all vying for the few buyers out there at the moment.  Whether offering extra concessions, coming far more than half way on sharing some expenses or demonstrating the willingness to accept a less-than-optimal price on the property – one thing is certain right now: sellers are the underdog.  With a home inspection on the table however, it is just one more thing that makes the sale more attractive than others, hopefully translating to a successful sale.

Why Would A Seller Get a Warranty Policy On a Home? Protection, Peace of Mind and Preservation

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Most of us have heard about a homeowners’ insurance policy and we know that the coverage on those usually encompasses things like fire, theft and vandalism plus storm, wind and lightning damage.  It doesn’t necessarily end there either but the general consensus is that a homeowner’s insurance policy covers unavoidable and circumstantial situations.  But did you know that a home warranty takes care of a different scope of coverage in a variety of circumstances?  In this article, we go through the differences so you can decide which one is better for you of if you would be best served to get a policy of each on your home.

Advantages of a Home Warranty

The most obvious reason a warranty on anything is advantageous is because there is coverage in case the items listed on the policy are affected in the way identified on the policy.  Who does not want extra protection?  A home warranty is no different, though most often it entails warranting a “used” space and the things in it.  Unlike a home insurance policy, a warranty covers things that may go wrong, without being tied to natural disasters (like storms) or catastrophic occurrences (like fire, theft or vandalism).  A home warranty will provide coverage on this like maintenance and repair on things in your home plus other related issues such as the plumbing and electrical systems, flooring.  Also covered by a home warranty is regular wear and tear incurred by the homeowner on things such as furnace, electrical systems and plumbing.

Benefits of a Home Insurance Policy

Required on most FHA loans, a homeowners’ insurance policy is not the same as a home warranty in that the policy covers basic replacement value in general in case of calamities such as fire, theft, vandalism, personal liability, storm damage and more.  Not only is the home structure itself covered under homeowner’s insurance but contents of the home are also included.  The biggest advantage of a home insurance policy, other than the blanket replacement coverage that applies to all or most of the home, is the personal liability protection.  Anyone visiting, as long as they are not a hired contractor on site (they would have to have their own protection) or those residing at the property are covered for any injury and corresponding medical bills, etc.

Overlaps Between the Two

As with anything, the extent of coverage largely depends on the individual policy drawn up and the riders included for which you pay a premium.  For example, a homeowner can choose to purchase additional glass protection, tree removal (after a storm and subsequent damage) or jewelry coverage on items stored in the home. There will be some overlaps, but in general each covers the home in a different capacity.  One, the insurance, from the perspective of a catastrophic coverage and the second, a warranty, as a blanket of protection against wear and tear plus normal aging.

Advantage of a Home Warranty in a Real Estate Transaction

A common feature on many home warranties is free seller coverage.  An example of this benefit. Benefits is through a policy offered by Home Warranty of America, a company that supplies a 13-month home warranty on the day a seller lists their house.  The most striking advantage is that for 180 days, the seller enjoys free coverage on the house.  When the home closes, only then is the policy paid for.  Better yet, the liability continues even after the sale transaction is complete, which means that if your buyer is in the home after the sale and discovers that something is not working as expected, most likely it would be covered under home warranty (assuming the item is listed on the policy).

A study conducted by an industry association demonstrated that warranted homes sell faster and more money – sometimes within 3% of the listed price.  In today’s buyer’s market this is an excellent tool to help sellers during real estate transactions.