One of the most common questions I’m asked by home sellers is whether they should do a home inspection before listing their home. My answer is usually no — but that’s not a one-size-fits-all recommendation. Some agents do encourage their sellers to complete a pre-listing inspection. In a seller’s market, buyers have less leverage and are more willing to accept homes “as is.” But in a buyer’s market, buyers have the upper hand. They can negotiate more aggressively — not just on price and concessions, but also on repairs.
Right now, we’re in a buyer’s market. Inventory is higher than it’s been since 2014, and demand is lower. Buyers know they have options and aren’t afraid to walk away from a deal if the inspection reveals too many issues or negotiations cannot be reached.
THE PROS OF A PRE-LISTING HOME INSPECTION PREVENT SURPRISES THAT COULD SCARE BUYERS AWAY
Buyers and their agents will meet their inspector at the end of the inspection for the review. Even if your home is in pristine condition an inspector will always find things wrong, it’s their job and they will point out every issue, big or small. Even minor items can seem alarming in a report. If too many red flags show up — especially expensive ones — it may give the impression the home hasn’t been well maintained, leading the buyer to walk away.
By getting a home inspection before you list, you can address many of these issues ahead of time. This reduces the chance of a buyer being overwhelmed by the inspection report and backing out of the deal.
AVOID DELAYS AND DEAL BREAKDOWNS
The standard inspection period is 10 days, followed by an additional 5 days for the seller and another 5 days for the buyer to negotiate (if needed). If no agreement is reached and the buyer cancels, they will receive their earnest money back. Now your home has been off the market for 2 to 3 weeks — and you’re starting over. Having a home inspection done up front means fewer surprises during escrow and smoother negotiations.
TIME TO SHOP FOR THE BEST REPAIR OPTIONS
A pre-listing inspection gives you time to get multiple bids, find the right contractors, and decide what’s worth fixing. You’re not under the pressure of escrow deadlines and can make smart financial decisions about repairs.
YOUR HOME WARRANTY MAY COVER REPAIRS
If you already have a home warranty, some of the repairs noted in the inspection might be covered. These claims can take time, especially if parts need to be ordered. By handling this before you list, you’ll avoid delays once your home is under contract. Depending on the repairs, you may still be able to list the home while the work is being completed.
THE CONS OF A PRE-LISTING HOME INSPECTION NO TWO INSPECTORS ARE ALIKE
Even if you complete a home inspection and fix everything it uncovers, the buyer will still have their own inspection. While most of the items in each report will be similar, every inspector will find something different. So even though you have had an inspection and even if you fix everything in that report, the chances are there will still be other items the buyer’s inspector will find.
NO TWO BUYERS ARE ALIKE
What one buyer considers a major concern, another might see as no big deal. One may request a long list of repairs, while another may be satisfied with just a couple of minor fixes. You could end up spending money fixing things that your eventual buyer wouldn’t have asked for.
YOU’LL HAVE TO DISCLOSE WHAT THE INSPECTION FINDS
When listing your home, you’re required to complete the Seller’s Property Disclosure Statement (SPDS), which includes any known issues — even those you’ve already repaired. A pre-listing inspection might reveal problems you weren’t previously aware of, and legally, those now need to be disclosed.
GET FREE HOME WARRANTY COVERAGE WHILE YOUR HOME IS LISTED
Regardless if you do a home inspection or not, if you don’t already have a home warranty, you can get a Seller’s Coverage Home Warranty while your home is on the market. The warranty company I use offers seller’s coverage at no charge unless you file a claim. That means if something like the AC or an appliance breaks down during the listing period, you may be covered — at no upfront cost. It’s an added layer of protection and peace of mind during the selling process. Not all Realtors offer this, so make sure you check with your Realtor when you sign the listing agreement.
If you’re thinking about selling and want to discuss whether a pre-listing inspection makes sense for your home, I’d be happy to help!