Should you get a pre-listing inspection when you sell by owner?

A pre-listing inspection is a home inspection you pay for before you list. A licensed inspector looks over the house and writes up what they see. It's the same kind of report a buyer would order, except you get it first.

It isn't required. For a seller with no agent, it's often worth considering, because it shows you what a buyer's inspector will find while you still have time to act. It also has real downsides. Here is how to decide.

What you get

An inspector looks at the visible, accessible parts of the house: roof, structure, heating and cooling, plumbing, electrical, and so on. You get a written report, usually with photos. It is one person's opinion on one day. It is not a guarantee about the future life of anything.

Inspectors work to standards set by their professional groups. To find one, start with ASHI's Find an Inspector. Ask what the report covers and whether the inspector is licensed in your state. Get quotes from a few; prices vary by area and house size.

Pros

• No surprises. You learn about problems before a buyer's inspector does, so you can't be caught off guard in the middle of a deal.
• Time to choose. You can fix, get quotes, or adjust your price on your schedule, not under a contract deadline.
• A report you can share. A clean, recent report tells buyers you have nothing to hide.
• Fewer renegotiations. If buyers already know about an issue and priced it in, it's harder for it to become a new demand later.

Cons

• You pay for it. And you may pay again if a buyer orders their own.
• You now know things. Once you have the report, you know about every item on it. That matters for what you tell buyers (see below).
• Buyers may still inspect. Many will want their own inspector anyway. A second report can find different things.
• It can open a to-do list. Some findings are small. A long report can feel worse than the house really is.

A simple way to decide

A pre-listing inspection makes the most sense if:

• the house is older, or you don't know its history well;
• you suspect something (a damp smell, an old roof, a sagging floor) and would rather know;
• you want a report in hand before your first showing.

It makes less sense if the house is new, you know it well, and you have the paperwork to show for it. In that case your records may do most of the same work.

What to do with the findings

Sort every item into one of three piles.

1. Fix it. Safety items and cheap repairs are usually worth fixing before you list. Keep the invoice. Attach a before-and-after photo if you can.
2. Price it in. For bigger items you won't fix, get a contractor quote and think about how it affects your asking price. A buyer who sees a number is less likely to imagine a worse one.
3. Disclose it. Anything you know about that could matter to a buyer belongs in your seller disclosure, whether you fix it or not.

Disclosure is a legal topic, and the rules differ by state. In general, sellers are expected to be honest about known problems, and hiding one can lead to a lawsuit. Read Nolo's state-by-state guide to seller disclosures. Then ask a local real estate attorney how your state treats a report you commissioned yourself.

How to share it with buyers

If you decide to share the report:

• Share all of it. A report with pages missing looks worse than a report with problems.
• Add what you did. Put the repair invoices next to the findings they answer. "Item 14: loose handrail. Fixed in September, receipt attached."
• Say when it was done. A report is a snapshot. Put the date on your summary and say what's changed since.
• Send it with your other records. See what records buyers want and how to answer buyer questions. The report works best as one piece of a full record, not the whole story.

Before you hand over a report you commissioned, have a lawyer look at the contract wording. A buyer can still ask for their own inspection.