Home inspections used to be a given. Buyers and sellers alike considered it a prerequisite to home sale negotiations. COVID-19 changed the rules, and now some buyers are waiving home inspections to make their offers more attractive to sellers as the demand for homes soars. Here are some tips from EliteMGA – a leading provider of E&O insurance for home inspectors – to show buyers the enormous benefits of getting a home inspection before or after the sale.
Skipping the Home Inspection Trend
An estimated 28 million Americans are planning on buying a home next year, according to NerdWallet’s 2021 Home Buyer Report. Per data from the National Association of Realtors, the supply of available homes was just about 1.04 million units at the end of 2020. It’s no wonder that buyers are taking unusual steps to secure the home of their dreams. Homes are listed for sale one day and under contract the next, with sale prices at many thousands more than the appraised value.
In this market, waiving a home inspection is a strategy some buyers are willing to try. Real estate brokerage Redfin found that 30% of successful offers submitted by agents in December 2020 included a waived home inspection, which is more than double the waived inspections from December 2019. However, home inspectors know better than anyone that waiving a home inspection is a risky business. EliteMGA, your choice for E&O insurance for home inspectors, has some suggestions for communicating that to potential home buyers.
How to Show a Buyer the Value of a Home Inspection
Most home inspectors have seen a “money pit” first hand. Still, not all buyers know the massive financial and safety pitfalls that can be hidden, even in new homes. Nor the potential savings that an inspection can uncover with a review of a home’s systems. Home inspectors can show buyers the value of a home inspection with these handy pointers:
- Use Examples – Saying that a home inspection is valuable is true enough, but nothing beats an example to paint a picture. Tell them about that structural deformity you found two years ago that saved a home buyer from making a half-million-dollar mistake. Or what about the heating system that was leaking carbon monoxide into the home? Or the roof that needed repair and would cost the homeowner another $40,000 in the next year after purchase. Examples show the homeowner that waiving an inspection can significantly cost them their money and safety. When you use details and dollar signs, people will listen.
- Be Clear About What They Are Getting – Being vague about what your services cover is a sure way to convince buyers that they can afford to waive your inspection. Would you hire an accountant to “help you with accounting” or one who “prepares your personal income tax return (saving 25 hours of work and leading to a $3,000 refund)?” Be specific about the structures and systems in the home that you review and what can be uncovered in terms of defects and costs.
- Shorten Your Timeline to Meet Their Needs – Buyers may desire a home inspection but are under a tighter deadline than before the housing market exploded. Accommodating a faster timeline or performing a modified inspection before or during a walk-through can help alert the buyer of potential problems and at the same time keep their offer appealing to a seller.
Inspect the Home After the Sale
Once a home sale has taken place, many buyers may assume no need for a home inspection. Home inspectors and EliteMGA – your trusted carrier for E&O insurance for home inspectors – know that couldn’t be further from the truth. Although the buyer may no longer be able to back out of the sale or negotiate a better price based on the home inspection, a home inspection after the sale will:
- Alert the homebuyer to the need for repairs
- Allow the homeowner to budget for future expenditures
- Point out safety concerns
- Advise ways to save money with more efficient systems
- Notify homeowner of systems not working optimally
Using the tools mentioned in the previous section, home inspectors can show buyers that a few hundred dollars for a home inspection, even after the sale, can mean better budgeting, savings, and peace of mind.
EliteMGA is the best source for E&O insurance for home inspectors because we are the only insurance provider dedicated to home inspectors with our captive carrier, EliteRE. Choose our home inspector insurance with confidence, knowing that we have been serving home inspectors for over 15 years. Contact Us today!.