When it comes time to sell your home, there are action items you can take that will improve the marketability of your property and significantly reduce your stress levels. I have been practicing this technique with sellers for years with great success. The following are suggestions that will help.
Building Inspection:
It is common for buyers to perform a building inspection once the property goes under contract. This is where potential problems can occur. Oftentimes, the building inspector will discover maintenance issues, repairs, or defects in the property.
It can be difficult to find contractors to make repairs in a timely matter. Repairs can cause financial hardship. Worst-case scenario, the buyers terminate the contract and the house goes back on the market. This can sometimes stigmatize the property for future buyers asking what is wrong with the property.
An inspection performed by the homeowner in advance of the home hitting the market allows the sellers to review the report and either make repairs or disclose the items to prospective buyers. I have often found buyers make less of an issue about a property if they know in advance what they are walking into versus finding out after they conduct their own inspection.
There have been instances where buyers have made higher offers when provided a full copy of an inspection report prior to visiting the property. This provides confidence to the buyers that there aren’t issues with the home.
Radon Testing:
Radon is a radioactive gas that forms naturally when uranium, thorium, or radium, which are radioactive metals break down in rocks, soil, or groundwater.
The EPA has set 4.0 pCi/L as the action level for radon. Knowing in advance allows the seller to install the system or disclosure to potential buyers what the level is.
Heating Systems Heating System
The heating system requires periodic maintenance to keep the system in good condition. It is highly recommended to have the heating system cleaned and inspected before placing the home on the market. In the event, there is a major issue, the seller can decide how to best resolve the issue. A new heating system can cost thousands of dollars to replace. Unexpected replacement costs like this can cause financial hardships. There are options on how to handle situations like this we can discuss with you to make the transaction go smoother.
Fireplaces, woodstoves, Pellet stoves, & Chimneys:
A fireplace, woodstove, and pellet stove use wood to burn and create heat. Over time the system can develop creosote deposits in the device and chimney. Creosote is a black, tar-like substance that forms inside your chimney when smoke doesn’t entirely escape. As it builds up, creosote can cause chimney fires. Many chimneys also use clay tile liners on the inside. Over time, the liner can start to deteriorate and become unsafe for use. Knowing the condition of the system in advance will help the seller determine whether to repair the item, provide a credit or just disclose the repair exists.
Septic System
Depending on how many people live in the house, the system should be pumped every 3-5 years. This gives confidence to the buyers that there isn’t an issue since this is an expensive replacement item.
Unless the tank has a riser coming out of the ground, the tank cover will need to be dug up. In the winter, this can be almost impossible since the ground is frozen. Many septic contractors will not attempt to break ground in the winter because of the risk of damage to the tank trying to break frozen ground. The results could mean the seller placing a large escrow aside until the time of which the system can be checked in the late spring. Tied-up funds can impact the seller’s ability to purchase another home.
For homes on public systems, it may be a good idea to have a scoping of your sewer line from the house to the main. Having the line scoped will help determine if there are any damages from breaks or tree roots in the line.
Water Testing
Private wells should be tested yearly to make sure drinking water is safe for consumption. Many mortgage companies require water testing as part of the mortgage process. Knowing this information upfront will allow the seller to decide which option to take to resolve the matter. A basic test to take would be the coliform, E.coli bacteria test. Other tests could include nitrite, nitrate, heavy metals, radon, and others.
Knowing up front can help prevent delays in closing or a nervous buyer backing out of the deal.
The inspections upfront has been proven to save the seller money on the backside of the transaction. In many situations, the seller decided to just disclose the items to the buyers without repairing them. Many buyers accepted the reports and moved forward with purchasing the home. The seller’s stress level was decreased because there wasn’t pressure to find contractors, get estimates, and have the work completed in a short timeframe before the closing.
It should be noted, most of the items noted above are typical parts of a purchase and sale contract. Items such as chimney inspection, heating system, and septic are usually placed in the purchase and sale contract for the seller to perform.