March 31, 2005

Pre-sale inspection provides a competitive edge for seller

Most real estate agents will agree that a house in good physical condition is more likely to sell, and command a higher price, than one that needs a great deal of repair. Yet according to borne inspection experts, approximately half of the resale homes on the market today have at least one significant defect and just about all homes need some type of maintenance or repair work

"Correcting these problems early not only makes the property more attractive and desirable, it also simplifies the negotiation process when the time comes for the buyer’s pre-purchase home inspection,” said Dan Bowers, a member of the National Association of Home Inspectors and owner of Holmes Inspection Company. “A favorable home inspection report not only confirms the buyer’s good feelings about the home, but helps to expedite the sale.”

To identify the components or systems that are most in need of repair, many Realtors and sellers will hire a professional home inspector before putting up.the “For Sale” sign. The person best qualified to do this is an experienced and professional home inspector.

Bowers, who is the public relations spokesman for The Heartland Chapter of the National Association of Home Inspectors, said a homebuyer’s primary concern is the condition of the home’s basic structure, the roof coverings and the major electrical and mechanical systems. Most buyers, particularly when there’s a large selection of homes to choose from, consider only those homes which don’t require a great deal of time and money to repair.

The best items for a seller to repair, then, are those concerns which would typically appear on most home-inspection reports. In a recent survey of its members, the Heartland NAHI Chapter in Kansas and Missouri found:

• The No.1 problem was improper grading and drainage around the house, a leading cause of water penetration and foundation problems.

• The second most frequent problem area was the electrical system, including situations such as insufficient electrical service to the house, inadequate overload protection and amateur, often dangerous, wiring connections.

• The third and fourth most frequently reported problems were roof damage and mechanical problems with the heating and air conditioning systems. Repairing worn or improper roof flashing as well as faulty HVAC controls, according to Bowers, are examples of maintenance investments that will pay off when the time comes for the buyer’s evaluation by his or her own inspector.

A pre-sale home inspection also will alert home sellers to a variety of other maintenance improvements that will enhance a home’s appearance and marketability, such as:

• Trimming trees and shrubs that touch or over hang the house.

• New caulking and weather stripping around the windows and doors.

• Cleaning gutters of debris and leaves.

• Repairing or replacing cracked or broken gutters, downspouts and extensions to ensure proper drainage.

• Replacing bathroom caulk or grouting where necessary to prevent structural damage caused by water leakage and to improve the overall appearance.

Fixing even minor items can go a long way toward improving that important first impression of a hone, so the home seller should remember to repair leaky faucets, tighten loose doorknobs, replace damaged screens and replace broken panes of glass.

Pre-sale home inspections will usually point out important safety precautions which buyers will appreciate, such as:

• Installing smoke detectors on each. level.

•  Installing Ground Fault Circuit Interrupters in “wet” areas, such as kitchen countertops, bathrooms and exterior outlets.

• Keeping flammable products away from heaters, water heaters and fireplaces.

When selecting a home inspector for this pre-sale evaluation, it is important to look for someone with the right professional qualifications, objectivity and experience; someone who has demonstrated competence in this field; and someone who does not have a substantial conflict-of-interest such as having a fiduciary link to one of the real estate companies in the transaction. An inspector’s membership in a professional organization should be a primary consideration.