What are pre-sale and pre-purchase property inspections?
When it comes to buying or selling a home, you must not forget one vital step, and that is a property inspection. A property inspection can help you avoid problems down the road.
However, while most people are familiar with the idea of a pre-purchase property inspection, many aren’t aware that a pre-sale property inspection is also an option. Having a pre-sale inspection can actually help you get a better deal for your home.
Read on to find out what else organizing a pre-sale or pre-purchase inspection can do for you.
What is a home inspection?
To help you understand how you can take advantage of either property inspection, it’s important you understand what a property inspection is first.
A property inspection is the overall evaluation of a home to get a sense of its real condition. Generally, a third-party inspector does the job. They will check the entire house, looking for maintenance problems, structural issues and sometimes also pests. With this information, you will be aware of any faults and problems with the property and the costs to fix these issues.
Therefore, there is no difference in the actual inspection when it comes to pre-sale or pre-purchase inspections beyond who organizes it. So, if it’s organised by the seller it is called a pre-sale inspection, and if a buyer organizes it, it is called a pre-purchase inspection.
Benefits of property inspections:
While buyers and sellers can both arrange a property inspection, there are different benefits for either party.
Pre-sale inspection benefits:
- Avoid unpleasant surprises at valuation
While there’s no requirement for a pre-sale inspection, doing so can provide you with a lot of advantages. For instance, you will be aware of any potential problems with your home. You can then decide to fix these or be prepared to lower the asking price to take these issues into account.
- Makes for a smoother settlement process
While selling a home is generally a straightforward process, issues can and do arise. This can include last-minute cancellations of a deal because of issues noted in an inspection. Therefore, when you have already organised an inspection and have decided how you will deal with any potential problems, like lowering the asking price.
- Get a better market price for property
As the property inspector will inform you of any defects with your home, you can solve them before putting your house on sale. This can mean a better market price for your property. Hence, investing some money in an inspection and minor repairs can be paid many times over with the improved selling price of your home.
- Inspires confidence in the buyer
Buyers are more likely to try and negotiate down a price (and further down) if they believe the seller is trying to hide something from them or is not being entirely honest. However, by organizing a pre-purchase inspection, you are showing your buyers that you have nothing to hide.
A confident buyer can also mean a faster selling process too as they are more likely to agree with original conditions.
Therefore, a pre-sale inspection can be extremely beneficial for sellers. But how can a pre-purchase inspection help buyers?
Also know about Tips for preparing your house for sale.
Pre-purchase inspection benefits:
- Save money by avoiding properties that need repairs
If you are a buyer, then a pre-purchase inspection will help you to be aware of any issues the home may have. While it’s almost impossible to find a home without some flaw of any kind, there may be some that you do not want to deal with. Therefore, an inspection can ensure that you are informed and can avoid purchasing properties that are more hassle than they’re worth.
- Save money when negotiating
Once know about any major or minor issues with the home, you can consider using them as a means for negotiating a lower price. Fixing problems with a home, especially major ones, can be very expensive. Therefore, you can cite the damages noted in the inspection report and their associated repair costs as a reason for a lower purchase price.
- Get specialist advice on problems
A pre-purchase inspection is also the perfect time to speak with a more knowledgeable professional about what issues are easily fixed and what are deal breakers. Take advantage of the inspector you have hired and get their opinion about whether the home is worth buying and the valuation is fair.
As you can see, a property inspection is important whether you are buying or selling a property. It can ensure that you are informed of the property’s condition and get the best value for money.