“My agent is recommending I have inspections done before I put my house on the market. Am I required to do this?”
The short answer to this question is no – you are not required to have any inspections completed prior to listing your home for sale. As a seller, you’ll have to disclose any information you are currently aware of that may affect the material value of the property, but it is not your responsibility to actively investigate and identify additional defects that may exist. If you already possess written inspection reports or estimates, you’ll have to pass those along to your buyer. The same is true for any information that has verbally been shared with you by inspectors or vendors and any existing defects at the property that you are aware of but have not yet investigated.
There are several reasons why Realtors might advise sellers to have inspections completed prior to going on the market. Knowing the current condition of your home can help you to better price the house for an “as-is” sale, and may reduce the chance of surprise inspection items blowing up your transaction during escrow. Some sellers are happy to have the opportunity to fix repair issues in advance to minimize buyer nerves during the inspection process. In extremely competitive situations, providing inspection reports up front can help to streamline the process and may encourage buyers to waive the inspection contingency in their offers.
Despite these benefits, there can also be downsides to providing inspection reports to buyers ahead of receiving offers. Inspection reports are often 50 – 100 pages and can be very daunting for buyers to read, especially if they are new to the process. Looking at a pre-existing report is a very different experience than talking with an inspector in person at the property. Inspectors are obliged to note in their reports any defects they find, regardless of how inexpensive the items may be to fix, and they typically do not include repair estimates. Buyers get a much better understanding of repairs when they can speak directly with the inspector to clarify what is considered a safety hazard, what is a typical maintenance item, and what is an “optional upgrade”. I work with buyers often and have had many situations where clients who would have otherwise submitted an offer decided against doing so because they were scared off by an existing inspection report. Overall, the decision to complete inspections up front should really be driven by your specific selling scenario and your goals for the sale.
Kari Carson
DRE #01903828
(818) 424-5537
Neighborhoods Served: La Canada Flintridge, La Crescenta, Montrose, Glendale, Pasadena, Eagle Rock, Highland Park, Greater LA area