He asked me why he should order a home inspection when he was the seller. It seems that in the past it was always up to the buyer to discover whether he wanted the home, and a home inspection was one of the best ways to find out if the house was what you thought it was and if you actually wanted to buy it.
So let's consider a few things, before we directly dive into this answer.
A seller should disclose anything that could affect the value and/or desirability in the eyes of the buyer in their decision to use it in its present and/or future use. Now I know that the seller is only responsible to disclose things that are known or discovered by the seller during the escrow period. (At least in California). So getting a home inspection prior to selling could make sellers weary as it would disclose the imperfections of the home to potential buyers and my turn them off or even encourage them to write an offer that is lower then what you would have received without the home warranty.
So some could argue against doing a home inspection prior to listing it using this point. So let's think of it another way.
Transactions fall apart for a number of reasons... Couldn't get a loan, lost a job, had to move, death, etc... They also fall apart due to something the buyer discovered after they got into contract. Maybe that discovery was from a home inspection. Buyers may just cancel the contract or even try to renegotiate the price after the home inspection, since now they have discovered that house has some fixes that are needed and the buyer my feel the home is no longer valued at what they got into contract to begin with.
When a seller gets into contract with a buyer there is an emotional aspect to that sale. They are starting the mental process of moving. Getting ready to set up movers, pack up boxes, letting people know you are about to move... The seller starts counting the days down till the buyer removes their contingencies so that the contract will be binding and the seller can make the final plans and move... And these 10-17 days can be stressful to say the least... And when the buyer cancels on the last day, that means you have to start over... OR if the buyer comes back to ask for some money to cover repairs it sometimes can lead to hurt feelings or even anger.
So this emotional fact alone is one of the strongest reasons to get the inspection prior to selling the home. First off, if all potential buyers know what is wrong the property prior to writing a contract, then they are less likely to cancel after the contingency time frame since they already know what is wrong with it. So a potential buyer that doesn't like what the report says up front won't make an offer anyways, so you don't have to deal with the ones that walk away later...
The buyers are also less likely to renegotiate the price, since they are aware of the deficiencies in the property. So these buyers have less of a position to stand in when asking for repairs and/or money since the buyer was already aware of the repairs that were needed. So the price that they offer up front will most likely stand through the contingency process and hopefully close at the amount.
A home inspection can range from $250-$500or more depending on the type of house, slab or foundation, rooms, attics, etc... I recommend all sellers to get pre-inspections.
Do you do pre-sale home inspections? And what are your thoughts on this? All points of views!!!