Real Estate

Pre listing inspection?

  • Last Updated:
  • Mar 30th, 2021 8:36 am
Tags:
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA

Pre listing inspection?

Hi everyone,

I'm looking to list a house in scarborough in the next few weeks. This is my first time selling a property. Are pre listing inspections common nowadays? My listing agent is pushing that I get an inspection before listing, and insisting I pay for it (~$350). I don't recall many homes having an inspection when we bought..

I just have a few concerns if i do get an inspection.. i'm aware a window has a hairline crack (from a rock hitting it), some windows from late 80s-early 90s?, basement 2 piece washroom doesn't have fan, basement vinyl flooring has a few pieces that don't click well, roof about 10 yrs old.. Other than that, water heater, furnace upgraded recently, newer 100a electrical panel, etc. I don't want to reshingle the roof or get new windows. Is it in my best interest to get an inspection then if i know these items will be brought up? I'm reading houses are selling mostly firm.. Is this because sellers already have an inspection or buyers taking chances? It sounds like listing agent wants to avoid lawsuits, said i might get sued later if buyer finds issues.

Thanks in advance.
Part-time Real Estate Agent
29 replies
Deal Fanatic
Jan 15, 2017
5750 posts
6123 upvotes
Ottawa
Get a new Realtor.

I would never trust an inspection report done for a home owner. It is a waste of time and money. Your Realtor is providing poor advice. Even in a multiple bidding situation some potential buyers will still pay for their own inspections prior to making an offer.
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
Yes sounds like I need a new realtor. I'm paying 1.5% for listing, without staging or 2.5% with staging. Do you think having an inspection report will give some buyers more comfort? Do inspectors overlook some stuff if it's pre listing inspection?
Part-time Real Estate Agent
Deal Addict
Oct 22, 2016
1047 posts
987 upvotes
Comox Valley
Do not get an inspection, as you state it is best, to not know all the issues going on. With this market, there is zero benefits to it.
Deal Addict
Mar 14, 2018
1480 posts
1584 upvotes
GTA
I also agree with finding a better agent. It is what you get with a cheap agent. If the agent really thinks getting the home inspected would help with the sales, he/she should pay for it since a bigger commission would easily make up this cost. Maybe he/she doesn't want to deal with buyers questioning or negotiating with the conditions of your house and just want to say "just look at the inspection report".

In my experience, paying 2-3% extra commission for an excellent agent always works out better in the end in terms of money saved/gained.
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
I agree, it's always better to have an agent that understands the neighborhood well.. this agent sold a lot in my area but don't know why he recommended an inspection report for me. perhaps to make his life easier. I think if the buyer is motivated enough, he'll get one before placing an offer. About fees, I went with the 2.5% with staging package. I think the agent is being quite cheap. He's not paying for cleaning, inspection, landscape work, and other stuff to present the house well, which I believe should be included if I'm paying 2.5%. Am I wrong to expect these services?
Part-time Real Estate Agent
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
Another thought is that paying the extra 1% for staging can be a benefit to homeowners because it makes the agent invest a few k into the home. The agent then has skin in the game. If house doesn't sell near comparables, he can't recoup staging costs which is at least $2000 for a bungalow . If he's listing for 1% and house doesn't sell, he loses money spent on photos, virutal tours, etc (~800 i believe) only.
Part-time Real Estate Agent
Deal Addict
Oct 21, 2006
1085 posts
900 upvotes
I wonder if the home inspector is friends with your realtor, worse yet he might have a team of trades WAITING for your inspector to highlight deficiencies, then you're forced to spend THOUSANDS of dollars fixing up your house before listing. A relative of mine fell in this trap, the realtor forced some overpriced trades people to stage, repair, touch up the house before it went on the market. At that point you are TENS of thousands into it, it was not the happiest of endings for the seller at that particular case.
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
Jigsaw wrote: I wonder if the home inspector is friends with your realtor, worse yet he might have a team of trades WAITING for your inspector to highlight deficiencies, then you're forced to spend THOUSANDS of dollars fixing up your house before listing. A relative of mine fell in this trap, the realtor forced some overpriced trades people to stage, repair, touch up the house before it went on the market. At that point you are TENS of thousands into it, it was not the happiest of endings for the seller at that particular case.
Yes, home inspector is an referral from agent but from a reputable firm. I’m pretty sure inspector can come up with a laundry list of stuff to fix like rotten deck wood, paint chip, old windows, etc like what they do in reports I’ve seen, but core items should check out. I’m just worried he might come up with something crazy like sagging roof, underground oil tank that require me to investigate, fix or disclose.

I will definitely be on the lookout for the trap as I can definitely see it happening to me. Agent is resourceful and eager to connect me to contractors, painters, etc. Initially, He wants me to buy first, then sell later. I said no, because it’ll put me in a terrible negotiating position. He seems to have no sense of urgency for me to list..

At this point, I’m going to sign with the agent I bought my house with.. at least we were on the same page albeit less experience selling hours in my neighborhood.
Part-time Real Estate Agent
Jr. Member
Oct 31, 2014
180 posts
286 upvotes
Toronto, ON
I have to disagree with the advice above (to avoid the inspection). I was recently a buyer and saw a lot of properties (detached and semi-detached in the City of Toronto). Most of them did have pre-inspection reports available, so the absence of a report was itself a 'bad sign' and certainly discouraged me from making my 'best offer' without an inspection condition.

It's true that the buyer is not the 'client' for a home inspection report so theoretically an inspector could collude with the realtor to provide a favourable report. But the level of 'thoroughness' is usually evident from the content of the report, and most of the time I found them adequate reassurance that I wasn't about to buy a house that's about to fall down.
Deal Addict
Feb 19, 2019
2347 posts
4020 upvotes
Stouffville ON
spires wrote: I have to disagree with the advice above (to avoid the inspection). I was recently a buyer and saw a lot of properties (detached and semi-detached in the City of Toronto). Most of them did have pre-inspection reports available, so the absence of a report was itself a 'bad sign' and certainly discouraged me from making my 'best offer' without an inspection condition.

It's true that the buyer is not the 'client' for a home inspection report so theoretically an inspector could collude with the realtor to provide a favourable report. But the level of 'thoroughness' is usually evident from the content of the report, and most of the time I found them adequate reassurance that I wasn't about to buy a house that's about to fall down.
Agree, to make a blank statement not to do the pre-inspection or get rid off the agent indicates the people who answered don't understand the market nor buyers' psychology.
Full Time and Full Service Realtor
Newbie
May 9, 2018
74 posts
39 upvotes
tqi123 wrote: Hi everyone,

I'm looking to list a house in scarborough in the next few weeks. This is my first time selling a property. Are pre listing inspections common nowadays? My listing agent is pushing that I get an inspection before listing, and insisting I pay for it (~$350). I don't recall many homes having an inspection when we bought..

I just have a few concerns if i do get an inspection.. i'm aware a window has a hairline crack (from a rock hitting it), some windows from late 80s-early 90s?, basement 2 piece washroom doesn't have fan, basement vinyl flooring has a few pieces that don't click well, roof about 10 yrs old.. Other than that, water heater, furnace upgraded recently, newer 100a electrical panel, etc. I don't want to reshingle the roof or get new windows. Is it in my best interest to get an inspection then if i know these items will be brought up? I'm reading houses are selling mostly firm.. Is this because sellers already have an inspection or buyers taking chances? It sounds like listing agent wants to avoid lawsuits, said i might get sued later if buyer finds issues.

Thanks in advance.

We had one done when we sold, our realtor offered to pay for it as part of list. Company we used was someone still in business from when we purchased 5 years ago, so felt comfortable in knowledge and not "employed" by the Agent.
Deal Addict
Sep 7, 2018
2268 posts
2729 upvotes
tqi123 wrote: Yes sounds like I need a new realtor. I'm paying 1.5% for listing, without staging or 2.5% with staging. Do you think having an inspection report will give some buyers more comfort? Do inspectors overlook some stuff if it's pre listing inspection?
You're paying a full percent for staging? Ouch

Also is that all inclusive or are you also paying 2.5% to the buyer?
>Wake up and take the orange pill ...
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
When buying, I find the listing agent only gives the "summary", not complete home inspection report, which highlights obvious stuff like age of roof, obvious structural defects, gutter/downspouts, cracked paver, etc. It urges you to contact them for a "re-inspection" for half the cost.
Part-time Real Estate Agent
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
superscoots wrote: You're paying a full percent for staging? Ouch

Also is that all inclusive or are you also paying 2.5% to the buyer?
Yes, full 1% extra for staging. I'm paying 2.5% to the buyer, so 5% total..
Part-time Real Estate Agent
Deal Addict
Sep 7, 2018
2268 posts
2729 upvotes
tqi123 wrote: Yes, full 1% extra for staging. I'm paying 2.5% to the buyer, so 5% total..
Houses literally sell themselves these days, 5% sounds crazy these days to be honest, at least negotiate 4%
>Wake up and take the orange pill ...
Newbie
Sep 6, 2020
25 posts
10 upvotes
GTA
superscoots wrote: Houses literally sell themselves these days, 5% sounds crazy these days to be honest, at least negotiate 4%
yeah i'm re-negotiating this with my buying agent. What's a good % comission if I'm selling this and buying one right away? Does 1.5% including staging plus 0.5-1% rebate on new purchase sound reasonable?
Part-time Real Estate Agent
Deal Guru
User avatar
Feb 2, 2014
11233 posts
3350 upvotes
Toronto
tqi123 wrote: Hi everyone,

I'm looking to list a house in scarborough in the next few weeks. This is my first time selling a property. Are pre listing inspections common nowadays? My listing agent is pushing that I get an inspection before listing, and insisting I pay for it (~$350). I don't recall many homes having an inspection when we bought..

I just have a few concerns if i do get an inspection.. i'm aware a window has a hairline crack (from a rock hitting it), some windows from late 80s-early 90s?, basement 2 piece washroom doesn't have fan, basement vinyl flooring has a few pieces that don't click well, roof about 10 yrs old.. Other than that, water heater, furnace upgraded recently, newer 100a electrical panel, etc. I don't want to reshingle the roof or get new windows. Is it in my best interest to get an inspection then if i know these items will be brought up? I'm reading houses are selling mostly firm.. Is this because sellers already have an inspection or buyers taking chances? It sounds like listing agent wants to avoid lawsuits, said i might get sued later if buyer finds issues.

Thanks in advance.
There's a lot of bad advice here.

I definitely recommend doing a pre-inspection if you expect multiple offers. If your objective is to get the highest price for your property with no conditions, paying $350 for an inspection will help. It will increase the odds of getting the highest price for a firm offer.

If not, you may be be putting yourself in a tough place on offer day. The highest offer may have an inspection condition. So you may have to choose between the highest price with conditions or a firm offer with a lower price. Doing an inspection for a reputable firm definitely increases the chances of receiving firm offers.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Addict
Oct 14, 2010
1292 posts
1787 upvotes
Toronto
Jeez what is $350 when selling a house.
Just get it done, you will open yourself up to get more offers.

Most houses will have a copy of a inspection report from Dunlop on the dining room table for prospective buyers to look through. This is your competition, do you want come off as that house that is trying to hide something?

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)