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Old 01-18-2008, 12:25 PM
Terry Beck Terry Beck is offline
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Join Date: Mar 2007
Location: Western Montana
Posts: 83
Re: Certified pre-owned homes
Pre-listing inspections are also extremely rare around here (I have had requests for a few over the last 4 years), though I have heard that they are much more common in other areas. One Realtor friend talked to me a year or 2 ago about doing a pre-listing program, wanting to set up a "no haggle price" program to reduce repetitive negotiations (though that conversation never went anywhere).

By the way, I get a bit nervous about calling it a "Pre-CERTIFIED" inspection. That carries some odd conotations.

Several Realtors around here are now offereing a year home warranty as an attempt to get a listing sold. A pre-listing inspection is similar in some ways. It is essentially another markeging tool for Realtors. My pre-listing program offers sign riders and brochures for the potential buyers, and even a short video tapes for the seller about staging a home. As part of a pre-listing inspection for the Seller, I also offer a heavily discounted price for a re-inspection for the Buyer (see the Notice to Buyers below). (yeah, its a marketing scheme, but I don't sell used cars or Brooklyn bridges).

A neighbor requested a pre-listing inspection last fall (I actually tried to talk him out of it, and suggested a 1-yr home warrany instead, but he wanted one so I did it). I found a few things they hadn't fixed. In any case, the Buyer that eventually bought the house told his Realtor that he bought the house 'as-is' in part because he felt more comfortable with the purchase because of the home inspection report. So it can work, though I don't suspect it will generate a lot of extra business. Basically, I market pre-listing inspections just as another way to get my name out there just as with any marketing material I send out.

As far as Liabilty goes, if you don't feel confident about missing something, then my attitude is that you shouldn't be doing any home inspections anyway. (This of course is from an inspector that has missed a few things over time, and learned from it the hard way.) Your inspection agreement should cover you for pre-listing inspections about the same as a buyers inspection (for whatever that is worth!!). Note: I also carry E&O even though its not required by my state (actually, nothing is really required by my state, even for builders). But E&O is a completely different topic.

The inspection agreement I use specifically states that a home inspection report "...is not intended to benefit any person not a party to this Agreement...". Therefore, nothing stops the Seller from giving my report to the Buyer, but my Aggreement states that any liabilty is non-transferrable.

Here is a Statement to the Buyer that I will include in any future pre-listing inspections:
"Notice to Buyers: The Seller’s inspection report reflects the condition of the home at the time of the inspection. Although we do our best to ensure the inspection report accurately represents the conditions of the home at the time of the inspection, property conditions can and do change with time. Therefore, the Buyer should have a Buyer’s inspection performed prior to making a purchase decision. Unless <my company name> performs the Buyer’s inspection, <my company name> cannot be liable for the Buyer’s reliance upon any information contained with the Seller’s inspection report."

That's my two cents. But I am certainly eager to hear other opinons from someone that has done a few pre-inspections, and especially if they have ever been bitten by doing one.
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