Presale Inspections: Salesmanship 101
It is Salesmanship 101… become an expert on what you are selling. This is a fundamental principal and why I recommend sellers conduct presale inspections. A seller needs to know exactly what they are selling, the good and the bad. The information that comes from presale inspections allows a seller to control the narrative and prevents a buyer from discovering something the seller did not know. If done with enough time, a seller can decide to repair certain items and is afforded the opportunity to adjust the price to factor costs of repairs and/or material defects. Whatever a seller decides to do, or not do, in reaction to the inspections they now have options. A seller can set a price knowing the full scope of the property’s condition, can disclose the reports to a prospective buyer before an offer is made and stand firm knowing the price considered the disclosed condition of the property.
Septic tanks are a great example. The Santa Ynez Valley is primarily an agriculturally zoned area and septic tanks are common. While negotiable, in this area it is the standard duty of care for a seller to deliver the property with a septic tank in good working order and certified by a qualified and licensed specialist. This is a particular inspection I recommend sellers conduct as early as possible due to the high demand of septic contractors right now. The real estate market in the Santa Ynez Valley is booming and many of the old septic tanks are not passing inspection. If the tank fails it may be one to two months before you can schedule a septic tank replacement. This lengthy process can disrupt escrow periods and send buyers packing so It is best for a seller to have the septic system inspected and certified before listing the property.
In negotiations, information is power. If the buyer knows something a seller does not, the buyer will most certainly use the information as leverage to drive the price down in secondary negotiations called “Request for Repairs.” Presale inspections are an opportunity for the seller to be the expert, properly disclose everything material to a prospective buyer and set up the highest probability for a smooth and successful transaction.