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No. The home inspection is one person's opinion and the buyer's going to have their own inspection done anyway. How does the home inspector know the roof will need to be replaced in 5 years? Same with the the a/c. This is simply his opinion.
That report would do nothing to re-assure buyers. They are nervous anyway. What they will focus on is asking for a huge price reduction for that roof and HVAC even though they are in working order or they might even want you to replace them now. Why give them ammunition?
Age of roof and age of HVAC are something sellers in my area have to disclose anyway.
Agreed, as a buyer I would still have my own inspection done. How do I know your inspection wasn't done y a friend of yours?
My realtor is suggesting I market my home as being pre-inspected, and include a copy of the report by a home inspector. Background: my home was on the market for three days, I got two offers, one above my asking price, and we moved forward with that offer. That prospective buyer backed out for unknown reasons, but I got a copy of the report from the inspector they used. While there are no safety issues with my house, the roof will (likely) need to be replaced within five years, as well as the AC system.
My realtor says including the report will help expedite the sale of the home. I think that a free home inspection report won't significantly increase the likelihood of an offer. Around here home inspections run around $425.
I see some cons: 1), not all buyers will ask for a home inspection--most will, but not all. I will disclose what I need to ethically disclose, but why give them information which could scare them away? 2), When someone is interested in the home and paid $425 for a home inspection, he/she is already more invested in the home. Walking away will cost them $425, which will give me, the seller, more bargaining power.
What do you readers think I should do? Why?
Thanks in advance.
I think you should get a quote to replace the roof along with a roofing certification if roofers do that in your area. The roof and AC in 5 years are two big-ticket items for a buyer. So I would offer the roof as-is at list price with a roofing certification or go above asking by the amount of the roofing quote and they can get a new roof on the house at that higher price. There will be buyers that really need that roof to get wrapped into their mortgage payment so that they can save for the AC.
So yes share the report with them and ask them ask for any repairs off that inspection in their initial offer, that would be my advice to you if I was your agent. They can still do their own, but it minimizes the chances of a termination again.
I appreciate all the feedback I've received so far. It seems most respondents are against sharing the inspection report, but realtors are warmer to the idea.
I appreciate all the feedback I've received so far. It seems most respondents are against sharing the inspection report, but realtors are warmer to the idea.
Real estate agents aren't paranoid about sharing an inspection report.
They are more likely to have seen the benefits from both sides of the table and merely by dint of the number of transactions in which they have been involved.
Last edited by MikeJaquish; 05-20-2020 at 04:35 AM..
I appreciate all the feedback I've received so far. It seems most respondents are against sharing the inspection report, but realtors are warmer to the idea.
My views are skewed by being in Texas where disclosures are regulated by law and the penalties for misrepresentation are stiff, but I would show the report. As a buyer, I have always asked if there is an inspection report, and what did it find. You can't really sell a house here as is with no disclosures, because the disclosures are required.
I appreciate all the feedback I've received so far. It seems most respondents are against sharing the inspection report, but realtors are warmer to the idea.
I offer a "certified pre-owned home" option where we get inspections done and make common or needed repairs before listing. I haven't tallied up the 2019 numbers but in 2018 the ones that we did inspections on sold for 99% of asking price and the ones that didn't sold for 97% of asking price. That was across about 65 listings so sample size was solid. I know other agents that have had similar results. I don't know your price-point, but would you like to make 2% more when you sell your home?
So despite the potential issues, you'll probably do better sharing the report. Otherwise, people that are knowledgeable can probably look at your roof and determine it's older and they'll offer accordingly anyway, and possibly still ask for concessions after inspections. On the flip side, if the buyer isn't aware prior to contract, it's highly probably the inspector will note it and the buyer will probably ask for a concession and possibly walk if they don't get it. Better to deal with it on the front end that lose a sale and lose the DOM. Also, if you have a sale or sales fall through, it stigmatizes your property. Buyers assume there must be something wrong the property if that happens and stop looking at it, or a savvy buyer will just lowball you.
Some of the ostriches just like to stick there head in the sand and hope the problem goes away, but that doesn't work well in real estate.
I was in a situation recently where I had to sell a home that I purchased only 12 months prior. I sold FSBO to limit my losses, and I gave every potential buyer a copy of the inspection report from when I purchased the home. I felt like this limited the risk of tire-kicking and made buyers more comfortable.
Who knows if it made any difference in my transaction, but that's just one vote for "share it if you want to"
The transaction was ultimately successful- sold the house for what I paid, and kept closing costs to under $5k on my end. Compared to renting, I roughly broke even that year because similar houses were renting for $400 more per month than my mortgage, plus I got the home interest deduction and the property tax deduction.
I appreciate all the feedback I've received so far. It seems most respondents are against sharing the inspection report, but realtors are warmer to the idea.
It is because we stare at them all day long.
So I did presales on two listings that went live on Friday. We had multiple offers and I shared them with all agents to give to buyers and we asked for the repairs upfront. We already knew both homes needed new roofs and that was put in the MLS, buyer to pick the color. We asked them to negotiate upfront, but they retained their right to do their own inspection. It was great for the sellers because we got to compare the offers side by side knowing which buyers asked for what repairs so the net to the seller was more clear from the get-go.
It is all in how you present it. I'm not a fan of the buried head in the sand approach to real estate though. It just isn't a realistic approach to selling homes.
In Texas, you have to disclose any known issues that are on a list that's in the statute. The inspection report can help mitigate those disclosures
Again, in Texas, failing to disclose a material defect leaves you open to a suit under the Deceptive Trade Practices act, which allows for triple damages and attorney's fees.
You still have to disclose any known defects. I would share the inspection report jsut to avoid any potential liability.
And, in Texas, the primary Seller's Disclosure used asks specifically about any inspection done in the past 4 years, and if you have a copy of the report, and if so, instructs you to attach it.
I've seen good results as a buyer's agent for sellers who have the inspection report available in the house along with receipts for repairs they've done to items on the report. That right there increases buyer confidence in what they're getting and in the good will and honesty of the seller which can go a long way towards making them lean in the direction of that house. Just the inspection report by itself, maybe not, but a show of seller due diligence and transparency impresses.
In my state, only the person that hired the inspector can give permission to share it, and the inspector would have no responsibility/liability for use by a 3rd party. Yours may vary.
Exactly. The OP does not own the inspection report. It would be fairly simple to contact the inspecting company to buy a copy for distribution. It should be pretty cheap, because the inspection and report are already done, so it's gravy for the inspecting company. I would offer half price and see what they say.
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