Should I get a pre-sale inspection on my older home?

Dave,

We will soon be selling our home and looking to downsize. We have lived here almost 15 years and are the second owners. We have taken good care of our home and have kept up on routine maintenance and also fixed any items needed over the years. Our home is older, built in 1976, but has been well taken care of. We are considering a pre-sale inspection, as one of our friends intimated that it might be a good idea. Your thoughts on pre-sale inspections? Thanks.

Dwight, Grand Junction

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 Dwight,

On face value it sounds like you could go either way. Your friend is right, it can be a really good thing and offer you and the real estate agents some peace of mind that the home is in good condition and free of any major problems. The decision should be based on your knowledge of the home and how likely you believe a problem may come up during the home inspection period. With any home built in the ‘70s, there is a reasonable chance that quite a few items will come up on the inspection, not because you haven’t taken care of your home, but because it is old! Generally, I think it is a good idea, based on the age of your home, but it will set you back $300-$400. This may be a very small sum in the long run, if it prevents a deal from falling apart.

One major thing that a pre-sales inspection will do is likely bring any “deal killers” to the surface before you get your home on the market and under contract. If you do find a significant issue up-front this will allow you to get it resolved prior to putting it on the market and getting it under contract. There is no doubt in my mind that many things that happen during and related to the inspection period, after a home goes under contract, are blown way out of proportion and have as much to do with leverage, emotion, fear and lack of knowledge than the problems that are discovered and their remedies. Once a For Sale sign goes up in your yard, regardless of what anyone says, everything changes and everything gets magnified, especially in a market where buyers can be difficult to find.

“There are two things that I think are a great idea, regardless of the age of your home. If you are currently on a septic system, I highly recommend you have your tank pumped and inspected prior to putting the home on the market as this serves not only as great preventive maintenance but will also put a stop to any potential septic issues before they generally get started. Also, have a licensed heating and air conditioning professional come and give your heating and cooling systems the once-over and provide a receipt for a clean bill of health.”

There are two things that I think are a great idea, regardless of the age of your home. If you are currently on a septic system, I highly recommend you have your tank pumped and inspected prior to putting the home on the market as this serves not only as great preventive maintenance but will also put a stop to any potential septic issues before they generally get started. Also, have a licensed heating and air conditioning professional come and give your heating and cooling systems the once-over and provide a receipt for a clean bill of health.  Septic systems and your home’s mechanical systems (especially heating) are two items that many home inspectors single out and recommend buyers have those evaluated by septic and HVAC professionals. It is good preventive maintenance and eliminates the potential for a conflict of interest to have those things checked out ahead of time. One more thing, if you have any question or doubts about your roof, have that inspected also. Roof inspections are generally free and will bring any potential issues to light and notify you in advance if your roof is at the end of its expected life.

I recommend a pre-sales inspection if you have ANY concerns about a “deal killer” issue that may come to light. If you have no concerns about that, then I would not do one. You know your home better than anyone and if you think you need to have one done let me know and I will be happy to recommend a few inspectors that will do a great job!  A pre-sales inspection is not for everyone, but maybe it should be….. I am finding myself rethinking the issue as I write this column. Thanks for the thought provoking question.

Dave Kimbrough
The Kimbrough Team

What time of year should we sell to get the best value on our home?

Dave,

Is it true that waiting until spring to sell your home will get you the best offers? We want to sell our home this fall, but don’t want to get shorted on value. Will we get the best price for our home or should we wait until the spring?

Anthony and Deb, Grand Junction

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Anthony & Deb,

What a great question and one that we hear often, especially this time of year! This is also a difficult question to answer, however, there are good reasons to sell now and also some good reasons to wait and sell in the spring! Keep in mind that there are so many variables to consider that each decision should be made on a case by case basis. Before making your final decision, always contact your real estate professional and meet to decide the best way for you to proceed and maximize your return. I will give you some basics on selling now vs. waiting till spring.  

Selling now has its advantages, particularly considering the lack of competition you will face this time of year. Many sellers are pondering the same question you are and will ultimately decide to wait till spring to sell, thus leaving fewer homes on the market throughout the winter. Showing and selling during the winter months is less appealing to many because of the holiday season. Most families, and mine is one of them, value the holiday season as a time to reconnect and concentrate on friends and family. Trying to show and sell your home during this time can really put a damper on and increase the hassle factor of an already busy time of year!  This clearly is a decision that your family will have to make for itself. When it comes to competition, less competition is a good thing when selling! If a buyer has fewer options to choose from it significantly increases the chances of your home being chosen...at least that was always my thinking when it came to high school dances...(I always hoped for low guy turnout!). Another advantage to selling this time of year is the unique ability to showcase your house as a home!  There is no better time to showcase the warmth and down home feel than winter and “homes” always win over “houses”. 

There are several reasons not to sell during the winter and hold out until spring and increasing prices is one of them. Generally in our market buyers start to emerge from hibernation sometime in mid-March to mid-April and the summer sprint begins. Our team experience is that during the months between April and June we typically generate the most contracts each year, and this is also the time when we will typically see prices really start to rise. You can generally anticipate good demand every spring and thus price your property a bit ahead of winter's pricing curve.  Keep in mind that this increase in demand also brings increased competition. Nothing does more for pushing prices upward than increased demand, thus why we see prices really start to rise throughout summer and level off a bit during winter – basic economic principles. If you are absolutely looking for maximum value, then waiting till spring is probably your safest choice, however, every year we sell many homes during winter that get max value, as they face less competition and show flawlessly. I hope this helps, but I can’t over emphasize to consult with your real estate professional and come up with an individualized plan and a plan that is best suited to you and your family. 

Dave Kimbrough
The Kimbrough Team

If our home sold in the first week, does that mean that it was under priced?

Dave,

We listed our home for sale about 3 weeks ago and it sold in the first week for what we were asking.  I was elated, but my husband keeps saying “we sold it too cheap.”  I keep telling him it was just the right buyer, but he says it was under priced. If our home sold in the first week, does that mean that it was under priced? Just curious of how you view this, as I am sure you have run across this very situation.  

Jackie, Grand Junction

p.s. I am happy we sold it quickly, even if we could have gotten a little more.

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Jackie,

I have run across this many times over the years and this is one of the real estate questions that is almost always debatable. There is no doubt that every time we sell something quickly that I ask myself the question, “did we price it too cheap?” I am here to tell you that sometimes the answer is yes, sometimes the answer is no and sometimes the answer is impossible to know. I can absolutely tell you that just because it sold quickly, does NOT necessarily mean that you sold it too cheap.  

There are times that we have sold a property within the first few days with multiple offers and in that case the answer would be, more than likely, yes. If something sells that quickly, with multiple offers then you probably could have gotten more money for it, because there are multiple people vying for the same product. The good news is that most of the time in multiple offer situations, we are able to get more than asking price. It usually works out to be about the same as it would have brought if priced higher originally. I really do believe that most of the time you are correct, it is the right buyer and not because it was under priced.   

 I don’t think a day goes by that I don’t tell one of my customers, “there’s a butt for every saddle, we just have to find the right butt!” A little talked about fact, which I might point out is underappreciated, is that there is always a school of buyers in the market and they are circling, just like fish in a pond. When new bait is thrown in, they all swim over to check it out and either take it or wait for something better. In our current market there are more buyers than one would think. They are circling and waiting for just the right bait. When they see it they will strike, but only if the price is right. Today’s buyers are not dumb, anything but. They are very smart and well educated on the market. When a property of interest comes up but is not priced appropriately, it will sit.   

I say it all the time, houses are like any other good to be sold. At a certain price all homes will sell and sell quickly, but the tricky part is establishing the market value for each one when no two are the same. That makes establishing a top of market value much more difficult than one might think. It is much easier to establish a market value for a particular item when there are thousands to be sold and they are all identical. In that case it is simply the law of supply and demand, but when EVERY item is different with its own characteristics, good and bad, it becomes much more difficult. Even the same house in the same neighborhood has a different lot, view, finishes, condition etc... As you can see every house is different. 

Honestly, sometimes I get it just right, sometimes I set the price too high and sometimes too low, but every time it is based on comparable sales in the area and my professional assessment of the unique values the property offers and I am sure your agent did the same. It really is as much art as it is science and you do not get them all right. If your home had not sold in the first week and been 60 days and no offer, your husband would have said it was priced too high. It's really a no win debate. My best advice would be to be thankful it is sold, remind him that he agreed to the sales price and be thankful you can avoid the countless showings and constant cleaning! The bottom line is, it is sold and that is a good thing.  

Dave Kimbrough
The Kimbrough Team