Home Standards would like to announce that we have a vehicle for sale. It has a few years on it, but has many new parts. Pristine condition. Drive-away condition. Please give us a call to set up a time to come take a look. The engine will not be allowed to be started, and no test driving.
This scenario is obviously fiction, but would you ever consider buying a car without starting it up and taking it for a test drive? Highly unlikely! Products for sale with limited information typically do not do well, while those marketed with up-front and transparent information often sell quickly.
In real estate, we are coming out of a time where sellers were able to choose offers without home inspections because buyers felt they had to bypass them to get the house. Sellers reveled in above-asking-price offers with no inspections. Many agents did not like this lack of transparency, but had to respect their clients’ choices.
To fill this information vacuum many agents suggested pre-sale inspections be completed on listings. Because of these, sellers have seen higher offers from buyers who were not holding back due to concerns about the property’s condition. There have been fewer legal concerns, and less hassle for sellers and agents due to reduced contingency period negotiations.
In our market our pre-sale inspections have grown by 10-fold from just one year ago.
As the market cools and returns to normal, we have seen requests for pre-sale inspections stay popular because of the realized benefits of getting the information a home inspection provides out in front of the transaction.
In the new home construction market things have changed as well. 3-5 years ago, there were a limited number of builders in our community. Many of the smaller builders left the market in the late 00’s due to the housing bubble that burst.
New construction quality after this period was strong. In a weak market, it is the strong companies that survive. Thankfully we see a resurgence of builders entering our market. We need homes built!
Unfortunately, with this fast growth, the quality of some construction has suffered. Agents and savvy buyers are seeing this.
The fast growth in this market has created the need for more new construction inspections. I personally have completed hundreds of these through the years and have never felt that a client regretted having a new construction inspection.
The market calls the shots. Along with regular home inspections for buyers, pre-sale inspections and new construction inspections are in high demand.
“The market rules,” we say. Or maybe it’s better to say, it balances out.