/
Pre-Listing Inspections Pre-Listing Inspections

Pre-Listing Inspections - PowerPoint Presentation

stefany-barnette
stefany-barnette . @stefany-barnette
Follow
345 views
Uploaded On 2019-11-29

Pre-Listing Inspections - PPT Presentation

PreListing Inspections For Real Estate Professionals An Approved Continuing Education Class for Real Estate Licensees Introduction amp Basics Course Objective To better understand The difference between a prepurchase and a prelisting inspection ID: 768612

process inspection report inspector inspection process inspector report pre listing seller buyer advantages inspectors agent repair logistics estate real

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "Pre-Listing Inspections" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Pre-Listing Inspections For Real Estate Professionals An Approved Continuing Education Class for Real Estate Licensees

Introduction & Basics

Course ObjectiveTo better understand:The difference between a pre-purchase and a pre-listing inspection How each inspection impacts the saleHow pre-listing inspections put more control in the hands of the real estate professional

Overview Most homes sold are inspected. Most offers are made contingent on a home inspection. Most home inspections are requested by the buyer. The buyer has most of the control.

Role in the Sales Process

Role in the Sales Process Who’s in control? The buyer chooses the inspector The buyer “owns” the inspection report The buyer may exaggerate what the inspector actually said. Typically, the seller and agent have to wait days before hearing the results of the report.

Role in the Sales Process Real estate professionals can be proactive by recommending a pre-listing inspection. The inspection provides shared information, allowing the sale to go forward. An offer made contingent on an inspection is still not a sale, it’s merely a possible sale.

Advantages

Advantages Goals of Pre-Listing Inspections: To share unbiased information about major components and safety issues To discuss repair, maintenance or safety issues beforehand To give the option of repair in advance of the saleTo move the sale forward

Advantages Advantages of a Pre-Listing I nspection for Real Estate P rofessionals: It’ll reduce the number of offers that are contingent on an inspection. Fewer buyers will walk away from multiple offers. It’ll sell a house faster. It’ll sell closer to the asking price. You’ll be able to market the property as “Pre-Inspected.”

Advantages Another Advantage for Real Estate Professionals: Sellers may believe the home is worth more than it. It’ll help the seller set a realistic sales price. Pre-listing i nspections help overcome “pride of ownership” issues.

Advantages Advantages of a Pre-Listing Inspection for Sellers: By openly disclosing maintenance/repair items, they can boost buyer confidence. They can choose the inspector. Only one inspector will come to their home. Reports can emphasize positive aspects of a home.

Advantages More Advantages for Sellers: Pre-listing inspections can reduce the number of days that a house is on the market. Everyone involved in the sale process have access to the same information. Sellers can choose what items to repair and choose to sell for more if repairs are made.Sellers can repair items, then reissue a report.

Advantages Advantages of a Pre-Listing Inspection for Buyers: Pre-listing inspections instill confidence in their purchasing decision. It saves time. It removes anxiety – “what if something’s wrong?”It saves the cost of a buyer’s inspection.

Advantages More Advantages for Buyers: Buyers still have the opportunity to question the inspector. There are no unpleasant surprises. They can concentrate on getting a mortgage.The buyer still has the option of ordering their own inspection.

Advantages The pre-listing inspection will help everyone set realistic expectations. The seller should anticipate that the inspector could find things that the seller is unaware of. The seller should understand that a pre-listing inspection is an opportunity to repair those items or to adjust the asking price. The buyer should understand that no house is perfect. They should expect on-going maintenance, etc.

Report Logistics

Report Logistics Who pays for a pre-listing inspection? The buyer? No. The seller? Usually. The agent? Sometimes. If an agent pays, it may help to secure more listings. The seller and the agent could each pay half; or the agent could reimburse the seller for one half after the house sells.

Report Logistics Can the inspector wait to be paid? He/she should not. Some people offer payment to their inspector contingent on upon the successful sale. This could create or appear to create a conflict of interest.

Report Logistics If the seller or agent pays for the inspection, can they influence the inspector? Neither should try to “influence” the inspector. The report should be accurate, factual and unbiased. The buyer needs to be confident in the report.

Report Logistics Who owns a pre-inspection report? The buyer? Only if the seller chooses to make it available. The seller? Yes, if he/she paid for the inspection. The agent? Even if the agent pays for the report, it should be viewed as belonging to the seller.When the seller pays for the report, it reduces any potential liability for the agent.

Report Logistics Informed Buyers Most buyers know very little about home construction. Answering any questions they have will put their minds at ease. While buyers are not the “owners” of the inspection report, letting them review its results will allow them to anticipate any potential repairs. Real estate professionals will be able to better focus on the next sale.

Report Logistics Report formats (full or partial): Checklist or narrative Combination checklist/narrative Computer generatedHandwritten Reports may or may not include a summary and photos. It should be delivered to the buyer at the first meeting.

Report Logistics Report Basics In any case, reports should: Be factual and unbiased Adhere to the standards of practice as per major trade groups (ASHI, NAHI, NACHI) Cover all major components Should define the terms used therein (“acceptable, marginal, defective,” etc.)

About the Inspector

About the Inspector Characteristics of a good inspector: Trained, thorough and unbiased Courteous and professional Uses the necessary and proper tools/equipment Adheres to industry standards Has good written and oral communication skills Has insurance and, if applicable, a license

About the Inspector An inspector SHOULD : Adhere to industry standards of practice and code of ethics (ASHI, NAHI, NACHI)Inspect readily accessible systems and componentsReport: Systems/components that aren’t working properly Recommendations to correct Explanation of the deficiencies Reasons with facts that certain systems or components were not inspected An inspector SHOULD NOT : Predict the remaining life of a system or component Offer to make repairs, refer specific contractors or receive referral fees Comment on market value Perform code inspections

About the Inspector Your inspector should explain the scope of the inspection process: The report should include the scope and limitations of an inspection – visual review of readily accessible components, random sampling of like items, etc. The seller should be invited along for the pre-listing inspection. The inspector should explain how long it will take, what it will cost and when they can expect the delivery of the inspection report. The inspector should touch on their training, experience and affiliations.

Preparing for the Inspection

Preparing for the Inspection A pre-listing inspection should be ordered immediately after listing . Real estate professionals can provide seller with a list of inspectors or refer them to a trade group such as American Society of Home Inspectors (ASHI).

Preparing for the Inspection Sellers should prepare for inspections by: Securing their pets Turning off security alarms Removing obstructions to: Furnace and water heater Electrical panel Attic Garage Crawl space, etc.

The Inspection Process

The Inspection Process Grading and Drainage Inspectors always look for grading issues. Negative grading can lead to water intrusion. Most grading and drainage issues are quick and easy to fix.

The Inspection Process Driveway, Walkway and Steps Inspectors will always look for loose or missing handrails (inside or outside), which are a safety issue. These items are generally easy and inexpensive to repair.

The Inspection Process Porches and Decks Support posts and stair stringers should have no earth-to-wood contact. This is easy to spot and repair in advance.

The Inspection Process Roofing System The roof is a major part of any inspection. This reported information should always be shared with the buyer: age, number of layers, type of materials, whether it’s leaking, etc. This will boost the buyer’s confidence.

The Inspection Process Siding and Trim There are many exterior coverings, such as wood, vinyl, stucco, brick, stone and synthetics. All of these coverings can be affected by vegetation, shrubbery and trees that make contact with the siding.

The Inspection Process Windows and Doors Inspectors will look for correct operation, alignment, weather-stripping and any evidence of leaks.

The Inspection Process Garages Garage doors receive a lot of use. Inspectors examine their operation, tracks, springs, openers and proper fit. For child safety, “auto reverse” is a must.

The Inspection Process Pools, Hot Tubs and Spas Swimming pools and hot tubs are high maintenance. Having the pool cleaned and the filters changed in advance will boost buyer confidence.

The Inspection Process In-Ground Sprinklers Irrigation systems can lead to: Underground leaks/erosion, which can greatly impact driveways, sidewalks, etc. Water intrusion in the basement from poorly placed heads. In the best case, sprinklers are high maintenance.

The Inspection Process Electrical System Inspectors will determine if the electrical system and service is large enough to meet the property’s and homeowner’s needs. They will also determine if the system is working properly and safely.

The Inspection Process GFCI Regardless of the age of a home, an inspector will always look for and recommend GFCI protection: GFCI bathrooms GFCI all kitchen countertopsGFCI unfinished basements GFCI garages GFCI crawlspaces GFCI all outdoor electrical outlets

The Inspection Process Smoke Detectors National Safety Standards require buildings to have smoke detectors. The inspector will always examine them. They should be in place and functional.

The Inspection Process Plumbing System Inspectors are most concerned with these four consistent questions: Is there adequate flow? Is there adequate pressure? Are there any leaks? Are the drains plugged or sluggish?

The Inspection Process HVAC: Heating The inspection will check for adequate heating (gas furnace): Overall size, age and condition of the unit Proper location of the unitAdequate combustion air Adequate temperature rise Heat source in each room Condition, size and location of ducts Condition of blower and humidifier Heat exchanger (mostly hidden) Exhaust system (check for flue gases and other leaks) Dirty filters obstruct flow and effect temperature rise Thermostat (unit responds to normal controls)

The Inspection Process HVAC: Cooling The inspection will check for adequate cooling: Overall size, age and condition of the unit Outside unit (clean, level and up off the ground; suction line insulated)No obstructions interfering with unit Discharging heat-ambient test Adequate temperature drop (14-22 degrees) Blower (clean and variable) Dirty filters, which obstruct flow and effect temperature drop Thermostat (unit responds to normal controls)

The Inspection Process Walls, Ceilings and Floors Walls, ceilings and floors may be covered by a wide variety of materials. Inspectors will check for deflection/tolerance in floors, bowing or cracking in the walls and cracks/stains/wet spots on ceilings. They will check for the operation and fit of doors and windows from the inside. Repairing and painting minor stress cracks can alleviate a lot of concern.

The Inspection Process Kitchens An inspection will cover: Cabinets – countertops, tile/backsplashes Stoves – operable burners, not timersDisposal – smooth operation, excessive noise Dishwasher – condition, leaking, proper air-gap device Ventilator – re-circulating/non Other built-ins – microwaves, trash compactors, refrigerators

The Inspection Process Bathrooms Bathrooms can be the most expensive areas to replace or refurbish. With simple maintenance, expensive repairs can often be avoided.

Post-Inspection

Post-Inspection Following the inspection, the inspector should always: Leave things the way they found them. Verify that the furnace/AC is running and return the thermostat to original setting. Turn off lights and running water.Make sure doors are locked.

Questions?

Congratulations on completing the course.