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Juice Flair/Shutterstock April 29, 2022 Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
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Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re preparing to , you already have plenty of items to check off your to-do list. One more task you might want to consider before putting your home on the market is a pre-listing inspection, also sometimes called a pre-sale inspection. Here’s what to know about this special type of home inspection. What is a pre-listing inspection
Pre-listing inspections are exactly what they sound like: Before you officially list your home for sale, a professional home inspector examines your property to identify any potential problems or repairs that need to be made. Think of it as an opportunity to know what the buyer might request before an or a purchase agreement is signed. “A pre-listing inspection will make sure the seller is aware of any issues prior to the buyer becoming aware, allowing them more time to prepare for negotiation or time to fix the issues,” explains agent Angelica Olmsted of Denver RE/MAX Professionals. She adds that this can help sellers understand the cost of any repairs, too: “It can also assist the seller when it comes to determining a price to sell or accepting an offer.” What does a pre-listing inspection cover
You can decide how thorough you want your pre-listing inspection to be. If you have one main concern, such as a crack in the foundation, you can limit things to just that area. Or, you might opt for a comprehensive job similar to a standard home inspection. Other areas a pre-listing inspection could cover include: Evaluating the anticipated lifespan of the roof Certifying that a DIY remodel was done properly Investigating the presence or absence of hazardous materials, like lead paint and asbestos Assessing water quality, especially if the home uses well water Home inspection vs pre-listing inspection
The key difference between a pre-listing inspection and a typical is who’s paying for it. If you’re selling your home and you’d like to do a pre-listing inspection, you’ll be footing the bill for it. For a home inspection, it’s generally the opposite. “The main difference between a pre-listing home inspection and a traditional one is whom the report is being completed for,” Olmsted says. “A pre-listing home inspection is typically completed by the seller, while the traditional home inspection is for the buyer, so they know what they are getting into.” It’s important to note that neither type of inspection is a substitute for an . An appraisal is an assessment of the of your home, which includes external factors such as the neighborhood and local real estate market. In most cases, a mortgage lender will require one in order for the buyer to obtain a mortgage. When to get a pre-listing inspection
While it can be beneficial for a seller to do, a pre-listing inspection isn’t always necessary. For example, if your home is relatively new and you’ve been the only owner, you’re most likely already aware of any big issues that could impact a sale. But if your home is older, failing to get a pre-listing inspection can be a mistake. It can also be helpful to get one if you’re hoping to close quickly, Olmsted points out. “If the seller needs a quick timeline to close or is putting in an offer that will be contingent and with tight deadlines, a pre-listing inspection may help them stay a few steps ahead in the process,” she says. How much does a pre-listing inspection cost
According to HomeAdvisor, the current national is $340. But the cost of a pre-listing inspection is extremely dependent on local market conditions, as well as the size and age of the home. A 5,000-square-foot historical home in Boston, for example, will obviously cost more to inspect than a new-construction, 800-square-foot condo in a rural area. If you are limiting your pre-listing inspection to a specific area (ie, the roof), you can expect to pay less than a full home inspection. If you want a comprehensive evaluation, expect to pay the same rate as a standard home inspection in your area. Pros and cons of a pre-listing inspection
Pros
It can eliminate buyer requests for credits. Let’s say your pre-listing inspection turns up some issues with the home’s plumbing. If a buyer finds those same issues and asks for a $3,000 credit or concession, you’d ultimately be making less on the sale. With a pre-listing inspection, you can fix it yourself and potentially build those repair costs into your list price. It can augment your home’s marketing to attract buyers. If your pre-listing inspection report looks like an A+, advertising this to prospective buyers can be beneficial to you as the seller, because they see that your home is in excellent condition. It can speed up the selling process. can take some time, even in a seller’s market as fast-paced as we have right now. A pre-listing inspection can help you proactively fix issues that could otherwise create hiccups as you near the finish line on the deal. Cons
It’s another cost. already, so tacking on one more might not be worth it to you. In today’s hot market, many entirely, so a pre-inspection may not be needed. It could conflict with the buyer’s inspection. It’s likely a buyer will still hire an inspector to do a regular home inspection, and that inspector might have a different view of your home than what your pre-listing inspection revealed. It might mean paying for unnecessary repairs. For instance, if the buyer’s home inspection is less thorough than your pre-listing one, you could wind up paying to fix some items that would have otherwise gone unnoticed. Are you required to disclose your pre-listing inspection
When you sell your home, you’ll likely need to sign a disclosure form that indicates your knowledge of potential issues. In some states — Illinois, for example — the disclosure form requires the seller to acknowledge any defects in walls, water leaks and issues with the HVAC system. With that in mind, sharing the pre-listing with the buyer can provide additional evidence to support why the home is a good purchase. What if the pre-listing inspection turns up issues? Should you proactively pay to address them? Olmsted calls this a tricky question: “Each situation is different when it comes to a pre-listing inspection,” she says. “The seller should review each line with their real estate professional in detail to determine what issues should be addressed or disclosed to the buyers.” SHARE: Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles