The listing inspection, also sometimes referred to as the seller inspection, is an inspection that the seller of a house (or the real estate broker of the house) pays for and has done before the house is listed for sale. This inspection is the exact same as a regular home inspection, the only difference is that the seller pays for the inspection rather than the buyer.
You may be asking what the advantages and benefits are to the seller having an inspection done on a home before it is listed for sale. Well here are a few :
When the seller gets the inspection done before listing the home it can eliminate the need for the buyer to have an inspection done on the home. You may be wondering how this saves the seller money. Well it can remove the need for the 10 day contingency deadline for a buyer’s inspection. This gives the seller plenty of time to focus on repairs, negotiate pricing for repairs (or price shop), and decide which items needing repair would actually be worth their time and money.
Having knowledge in advance about the (seller’s) home and the repairs that may be needed can better prepare the seller for negotiations later on once an offer is put in on the home. It can also help keep the seller from potentially losing equity in the home (by having to drop the price of the home) for the sake of meeting the negotiation deadline or even worse, from losing the buyer.
Many homeowners are unaware of all the issues a home inspector may find in their home. These surprises can create many emotions and have potential to kill a deal. A listing inspection eliminates these surprises and helps for a smoother transaction.
Compliance with disclosure laws
Disclosure laws, in regards to the seller’s knowledge of past or current conditions of the property, apply in every state. Having a professional home inspection report lets the seller satisfy the need to disclose anything he or she knows about the property.
Decreases the possibility of a nondisclosure lawsuit against the seller after a sale
A homeowner and their agent can become subject to a lawsuit when major defects that were undisclosed are discovered after the sale of a home. Getting an inspection before the sale and having that report decreases the possibility of a post-sale lawsuit by having documented proof that everything was done to uncover any possible major defects.
Minimizes negative emotions for the seller, buyer, and real estate agent
I know from my own experience of buying a home that emotions run high throughout the entire process. The biggest thing for me was finding out the basement had a pretty substantial leak the day before closing. Not only was I distraught but the seller and my agent were as well. My agent had to get the seller and seller’s agent on the phone immediately; We had to find someone to come out a give an estimate; Then I had to negotiate a last minute deal with the seller on repairs, all within a 12 hour time period so that we could close on the home.
As I mentioned above, having a listing inspection eliminates all this last minute frantic stuff and helps put everyone’s mind at ease. The seller can have peace of mind knowing they have a list of defects and issues and there won’t be any surprises, the buyer can be at ease knowing these issues before putting in an offer, and the real estate agent can rest easy knowing what kind of condition the home is in and what they’re getting into. It’s a win win win.
In most cases, with a home inspection having been done in advance, an agreement can be reached for repairs and the sale price of the home without the need for a buyers inspection. In any case where the buyer decides to waive their rights to a buyers inspection, the 10 day inspection contingency is eliminated and this results in fewer days to closing.