A client recently reached out to me wondering about the preparations for the listing of their home, because it seemed like there was an endless parade of contractors and inspectors.
Their level of exasperation helped me realize that, while the process may seem routine to those of us who facilitate these types of preparations day in and day out, the experience from the client’s side was sending a clear signal that expectations hadn’t been fully set of what someone is in store for when they decide to list their property with a proactive approach taken.
The time and costs involved can be overwhelming if they are not clearly understood, so in the interest of setting the bar, in addition to whatever repairs and staging are decided upon, here are some typical costs that can be expected for the seller-provided inspections and reports in preparation for a sale:
Physical Inspection: $450-$650, depending on the size of the home;
Pest Inspection: $275-$350, again depending on size;
Sewer Lateral Inspection and Bid: $0-$250, plus costs of gaining access. Often uncovers additional mandatory costs to correct running thousands of dollars—which may be passed on the Buyer if negotiated up-front;
Septic Inspection: $450-$650, depending on size and type of system;
Well Report and Water Quality Test: $450-$750, depending on extent of tests; and
Third-Party Geologic and Regional Disclosures: $75-125, depending on options.
On occasion, inspections by other experts such as an engineer, surveyor or architect may be advisable to address additional concerns.
In order to help make it all a little less shocking to those who may not have previously been aware of how much goes into laying the groundwork for a stable transaction, my team and I have resolved to make it our standard of care moving forward to put together a written list of the anticipated repairs and inspections up front, along with an estimate of their costs to provide and have our clients sign acknowledgment of before the inspections and repairs are started.
The impact of getting these inspections done beforehand is to help document the current condition of the property as accurately as possible for purposes of minimizing the chances for any surprises once we are in contract. From a liability standpoint, this helps mitigate the chances of the home being purchased by the buyer with any major issues that could come back to bite the seller in the future. And for tactical purposes, it takes away potential leverage points that could be used by the buyer in an attempt to renegotiate the price midway through the contract.
The process of getting a home ready for the market can be a stressful and exhausting experience, and the hope is that the ordeal is ultimately worth all the trouble. Along the way, it is a crucial part of our role as agents to respond to concerns expressed by our clients so that we can continue to improve our impact on what is often a major transition in their lives. And every question and feedback we receive provides an opportunity to explain and address details which may not otherwise have been resolved as we go along.
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