Property defects may turn buyers away
By LISA SCONTRAS
Custom Publishing Group
More and more sellers are one-upping their competition by hiring a professional home inspector.
A home inspection report can guide sellers to identify and remedy defects making the property more attractive to buyers.
Traditionally, professional home inspection services have been a way for home buyers to make themselves aware of maintenance and repair issues before closing on a new home. Home inspections which always make good buyer-beware sense are commonly conducted during the escrow period and in accordance with standard purchase contracts.
The interest among sellers has to do more with being able to show perspective buyers a clean bill of health on their property a smart move in this recent shift to a buyer's market.
Barry Wong, licensed general contractor and home inspector of Building Specs Hawaii LLC, says that his business has seen an increase in seller requests recently.
"Sellers are definitely more proactive today," says Wong. "They would rather learn of problems upfront and either make the repairs or appropriately price the property than leave it to the buyers to find out on their own later."
The home selling environment has changed dramatically in the past year. One year ago, in the heat of the sellers market, record-low inventory meant multiple buyers were bidding on properties. It was a different story then, he says.
"Now, there are fewer buyers out there," he says. "You want to keep them once you get them."
Corinda Wong, Realtor and partner at Prudential Locations LLC, says that her 17 years experience in the business coupled with being married to a home inspector has opened her eyes to certain conditions that can be big turnoffs for buyers.
Barry says the top three are:
1. High priced items
"If the roof needs to be replaced, for example, that might turn off the buyer," he says.
2. Unexplained conditions
If there are signs of ground settlement problems, that may scare a buyer away because of the unknown costs associated with fixing it.
"Here is where a seller can be proactive and hire a structural and maybe a soils engineer to try and identify the cause of the problem," says Barry. "Then you might be able to give the buyer options as to what can be done to remedy it."
3. Safety issues
"Electricity is something that concerns a lot of people," says Barry. "It's a major safety issue."
Sellers might consider updating their wiring to a grounded system if their home was built before the 1970s.
Corinda includes leaks especially those in the plumbing and roof on the must-fix list.
Hidden leaks can cause mold problems, which can ultimately lead to health issues.
"Mold is an especially sensitive issue for buyers coming from the Mainland," says Barry. "On the Mainland, buyers typically get an air sampling which tests for mold exposure. If there is an elevated level, that tells you there is an indoor mold growth problem."
Building Specs Hawaii is one of the few companies on the Island certified to do air samples to analyze the air quality, he says.
"But I think that is something that will slowly become more common in home inspections here," he adds.
Corinda says that when it comes to big ticket items, it make sense for sellers to present the home in the most positive light, rather than risk losing the sale.
"Some buyers are turned off from the smallest items but most are turned off by costly items," she says. "And they will sometimes ask the seller to correct the problem, but sometimes they just walk away from the home."
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