Home inspection issues not only cost you money to repair, they can also lower the overall perceived value of your home.

When you sign an agreement to sell your home, one of the first contingencies the buyer will place on the contract is that of a home inspection. The language is usually written as, "Contingent upon Buyer's satisfaction with inspections". A home inspection is an examination of the current condition of a house by a certified professional home inspector. Home inspections are used to provide an opportunity for a buyer to identify any major issues with a house prior to closing. The following is a list of some of the most common issues identified in a home inspection.

• Structural Issues
• Termites/Pests
• Roof Issues
• Drainage/Water Issues
• Mold Problems
• Radon Issues
• Electrical/Wiring Issues
• Plumbing Issues
• Well/Septic Problems
• Asbestos

The Obvious Costs

When issues are identified, the buyer has two options; they can decide to terminate the purchase agreement for the home; or they can issue a Notice of Objection. This notice will identify the issues of concern, and what method of remedy is required. The remedy is most often a request to have the issues repaired by a licensed professional. For you, the seller, this means additional costs and lost profit on the sale of your home. However, this is could actually be the best-case scenario for you.

The Hidden Costs

In the case where a buyer walked away from the agreement, you would need to put your home back on the market. The issue now, is that you now have knowledge of the issues identified by the home inspection. This means that legally, you would need to update the Seller's Disclosure form with any known issues that apply. This can now lower the perceived value of the home as these issues could cause a potential buyer to assume the entire home would be poorly kept and in disrepair. This would result in a greater lost profit, since the repairs will still need to be made.

The Solution

Bringing the future into the present, a good suggestion that I make to my seller's is that you spend a small amount upfront to have your own inspection done prior to sale. Then you can identify and repair any issues ahead of putting your home on the market. We can now use this as a marketing tool by advertising the home as being pre-inspected. This generally gives a potential buyer a better sense of comfort that they aren't wasting their time on a home that may have issues. And, because of this buyer benefit, the cost of the upfront inspection can generally be recouped with a slightly higher sales price.