The existing real estate commission-based model to sell homes and to not pay fees up-front has contributed to the mentality of Sellers to not pay for a (pre)home inspection. Agents may shy away from recommending this for fear that a Seller will choose another agent (associating the inspection cost with that of the agent). Sellers have paid tens of thousands of dollars at closing in real estate commissions and multiple thousands of dollars for repairs demanded by buyers after their inspection but haven’t routinely coughed up a fraction of those amounts for inspections which could actually save the Sellers thousands by giving them time to shop for repair people and make the transaction smooth, if not save it from actual termination. A simple disclosure up-front to Buyers and the proper language in the agreement of sale could result in no need to make or pay for repairs at all.
Sellers sometimes have the mistaken belief that if they shield themselves from finding out about problems with the property, that they have no duty to disclose this to prospective purchasers. Beyond being incorrect, this is just serves to infuriate buyers. Would you like it if you found out about problems with a home you were buying (or bought) and the Seller knew about them but didn’t tell you? The number one reason, by far, that home sales fall apart, and don’t go to closing is due to issues discovered by Buyers as the result of a home inspection. The number one lawsuit that Sellers face after closing is for defects found by Buyers after the closing that should have been disclosed.
At times, Sellers have told their agents to not provide them with a copy of the home inspection if the Buyer was terminating the transaction anyway. They think this will prevent them from having to amend the seller disclosure form required on sales in Pennsylvania This is problematic if a Buyer sues a Seller down the road and the report contained information about the issues. A better approach is to obtain the information, disclose it and let the Buyer know that the price reflects those conditions.
Having a pre-inspection gives the Seller time to find out the cost of repairs and to line up contractors without the pressure of the time frames contained within the agreement, which are usually short. Odds are the Seller will get a better price if they are not in the “emergency mode” and have time to get three bids from different contractors and can work with the contractor’s schedule so they don’t have to miss out on other jobs.
In short, we are “all in” on obtaining a pre-home inspection by an ASHI ( American Society of Home Inspectors) certified inspector as is required in the standard Pennsylvania Association of Realtors agreement of sale. The up front cost will most likely save more than that amount in repairs demanded by buyers.
