Home inspection before house is listed?

Question

My wife and I are looking at a house to buy for our first home. It's not on the market yet and may not be for a few months, but we know the owners have the intent to sell. Both we and the sellers have expressed our inexperience and our desire for legal protection to not get taken advantage of in a transaction.

My wife and I have been discussing paying for a home inspection now, before the home is listed, for 2 reasons: 1) to get a better idea of what we would be getting ourselves into with this home and of its value, and 2) to demonstrate our desire and intent to buy this home, to hopefully help us stand out as potential buyers.

Any thoughts on this? I haven't gotten an estimate for a home inspection yet. I'm imagining that it would be a small price to pay to increase our confidence in moving forward with this purchase, getting a better idea of the funds we'd need, and to give us a better chance of being the chosen buyers. But I've never done this before and maybe it's a crazy idea. I really appreciate any and all input from more experienced homebuyers and investors. Thank you!

Chris Seveney · Answer

I would not do this unless you ahve already agreed on a price with the seller. LEts say they want $300,000 and you think its $250,000 - really does not matter or is worth it to pay $500 for a home inspection if there asking price is that far off.

Also, if the transaction occurs six months from now, a lot could go wrong between now and then and you will have to do another one later on anyways.

Henry T. · Answer

Like the others have said, not prudent unless you have an agreement to move forward. Meanwhile, you should be looking at as many open houses as possible, you'll learn a lot.

I'm sure you know, the biggie is inspecting the sewer line,  sewer is the largest cost if failing.

Clayton Silva · Answer

Couple thoughts:

1) If you are going to put a mortgage on the home which I imagine you will, you are going to have to get the property appraised.  This has an inspection element determining the value of the home to give you an idea of what it is actually worth in its current condition.

2) I would definitely do inspections, but I would not do them until you are in contract.  Do them now, and who knows what will happen in 3, 6 or 12 months between now and buy time.

3) I would have a very good title agent involved to insure the property (title policy), provide a clean chain of title, prepare the new deed, etc.  (I know a lot of really good ones in CA).

4) Lastly, I would get pre-approved with a lender sooner rather than later.  It could all be a moot point if the seller wants 800k and you qualify for 500k if that makes sense.

Hope this helps and happy to answer any questions you have!

Ying Tang · Answer

In California, a few things would impress the seller: 1. Waive inspection (one should almost never do that); 2. High price bid; 3. Offering cash; 4. Offering to close in short number of days. I don't think order an inspection before listing date would impress the seller much. So one thing you can do is to get prequalified sooner than later, and offer to close in shorter number of days.

Bruce Woodruff · Answer

I don't see this having much value. Most pre-sale inspections are paid for by the seller, and then only when close to being listed....as @Clayton Silva said, things can change a lot by the time this actually gets into escrow. And a basic JHome Inspection will not tell you what you want to know....you don't care about broken GFIs and stuck windows, you want to know what a kitchen remodel costs.

If you really want this house, just do your own 'inspection' (with a GC) and see what you think it needs in terms of upgrades....then do your ARV comps and see at what price-point this would make sense to actually take on. Do not let the fact that you just 'want this house' have anything to do with this. It has to make significant money or you shiuld not be interested.

Example:

1) Your research shows that nearby and similar properties are selling for $800k.

2) You estimate that the needed repairs to make this place as nice or better than the nearby houses will run $200k (be honest about this number and make it generous).

3) How long will this renovation take? Add 20-30% to your guess at this, because it will ALWAYS take longer and cost more....... ALWAYS.

4) You want to make $100k profit for your investment and risk (which can be ongoing). Let's say this will take 10 months, so that's $10,000 a month...then subtract your living expenses and taxes. So you're down to maybe $2000 a month you get to keep...barely worth it. But your numbers may differ. Make sure you're accurate on them.

5) So in this example, your offer price would be $500k, right? Generally a seller will not like this and want closer to market even though it needs a lot of work and $$....but stand firm. Why even do a deal unless you will make good money?

Nate McCarthy · Answer

Thank you everyone for the super-sound advice! @Roland S. I agree that the price for an inspection seems to be to be a small price to pay for those benefits, that was my original thought on this. However others make the very good point that 1) a lot could change between the time of inspection and the time of sale (although I'm not too worried about this as the house is unoccupied), 2) other strategies such as paying cash, etc are much more likely to influence the seller than my eagerness to pay for an inspection, and 3) I'm probably more likely to learn more from a walk-through with an experienced GC than from a mere inspection. The appeal of this house is, of course, the ability to force appreciation, so without a doubt if the numbers don't make sense then it's not for us.

I really appreciate everyone's input. I'll keep you updated!

Bruce Woodruff · Answer

Yes, sewer (if cast iron or clay), also. roof, electrical and foundation....

Ken M. · Answer

If you are using FHA or VA money to buy a property, they will require an inspection but they won't use yours. It has to be ordered by them.

Two different inspections will produce two different lists of concerns. It always does.

It might be worth doing to prepare you for the shock that all houses have problems to address.

It sure won't impress the sellers to have all of the deficiencies of the property exposed to a sometime, maybe in the future, potential buyer. Also, in some areas, they are required by law to put into writing all known problems with the property once they become aware of it. That may not be to their benefit if they end up selling on the MLS. Fine for you perhaps, if you become the buyer, but what if you aren't the buyer.

I would suggest you simply get ahold of someone's inspection report and go over it so you can see what kinds of things wind up on a report, before you go through the intrusiveness and disturbance of doing a home inspection on a property you don't have a purchase & sale agreement on.

Doing a home inspection is like making a 16 year old care for a baby for a few days. It's a

prophylactic against doing stupid things, like buying a house before your ready and being properly prepared.

Roland S. · Answer

@Nate McCarthy Hey, I get your cautious approach as first-time buyers—it’s smart to prioritize legal protection and transparency with the sellers. Paying for a home inspection now, before the house is listed, is a solid idea; it’ll give you a clear picture of the home’s condition, help you estimate repair costs, and show the sellers you’re serious, which could make you stand out. Just make sure the sellers are okay with it, and consider getting a pre-inspection agreement in writing to clarify that the inspection doesn’t guarantee you’ll buy. Inspections typically run $300–$500, so it’s a small price for peace of mind and a stronger position. I’d also suggest talking to a real estate attorney to draft a fair purchase agreement that protects both sides. Good luck with your first home!

Home inspection before house is listed?

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