About Floyd Gibbs

Floyd Gibbs is the owner and senior inspector for Quality Home Inspections. He is a class A contractor, Certified Master Inspector, and Certified Real Estate Inspector. Floyd has performed over 8,000 inspections and throughout that time has provided accurate, informative, and reliable information to home owners, buyers, and REALTORS®.

Transition Years: Part 3 of 4

This is Part 3 of 4 of a discussion of Transition Years for a home.  

Part 1 answered the question, “What is a Transition Year Home?” Part 2 covered “The Costs of Transition Year Homes.” Part 3 is “Positive Ways to Present Transition Year Homes”.

When a buyer is considering purchasing a home, they are not necessarily looking at the year of the home. They are more concerned with the size, neighborhood, price, and location, but looking deeper into the home is where you may find additional information helpful to closing the deal.

There are many things to consider when purchasing a transition years home. What has already been replaced or repaired? What needs to be replaced or repaired? How well has the home been taken care of through the years? If the roof, HVAC, windows, hot water heater, and flooring have not been replaced (even though they may be in working order), those items in a home between 17 and 23 years of age may be coming to the end of their life expectancy.

Remember: “knowledge is power!” The buyer is going to look to you for these answers. Many of these items may be bargaining tools with the seller when writing a contract. This is the time for the buyer to consider how much time, effort, and finances they will need to complete the upgrades they desire—as well as what items are necessary to complete due to a home inspection or lender requirements.

BUYER’S INSPECTION REPORT

2-10 Home Warranty

The best tools you can have in your arsenal are a positive home inspector and a home warranty. The home inspector can present the facts as a scare tactic method or they can be present them in a positive manner. Everything an inspector finds is repairable, fixable, or livable; it’s all about the presentation. Many inspectors enjoy tearing these homes apart because they can.

Sadly, this will diminish your ability to express to your client the reasons they should consider these homes. In most cases you have invested a lot of time and energy in getting to this part of the transaction.Unfortunately, no one can predict when or if something is going to go wrong, but providing a home warranty gives your client peace of mind knowing that when or if this happens, they have a plan in place. Home warranties are wonderful products, and transition year homes are the perfect houses to have one on. With a positive and informative home inspection and the security of acquiring a home warranty, most issues can be overcome. The biggest fear for a buyer is the unknown, so when you can eliminate the guesswork and put a contingency plan in place, fears diminish and they can move forward to enjoy their new home.

SELLER BENEFITS of a PRE-LISTING INSPECTION

When a seller is looking to list their home with you, they will need to address the same issues of transition years from their side of the transaction. They more than likely already know there are (or might be) problems in the near future. They may have already spent quite a bit of money on some of the items. A complete pre-listing home inspection can let the seller (and you) know exactly what the potential issues are. It presents the facts that are going to come out during the sale and potentially hinder it. In this case, knowledge again is power!

Letting any home inspector come in and tear your listing apart is playing Russian roulette. You work way too hard to have someone else controlling your outcome, so the way to be present at all conversations about this property is to know up-front the condition of the home and any problems that may be brewing. With the pre-listing inspection and all of the facts on the table, you relieve your sellers of the burden of addressing potential inspection issues late in the game. Now you can make potential lender-required repairs up front; have HVAC equipment serviced; get the roof certified; and offer a home warranty if desired.

Another way to aid your sellers is to provide at the front door the pre-listing inspection with a list of the new items put in or repairs made (receipts should also be retained as proof of repair). Remember, the reasons buyers are looking at the house to start with are the schools, location, size, price, etc. The physical properties and needs of the house are second, but you just relieved them of that hurdle—so now very few things are standing in the way of buyers making a very respectful offer.

NOTE: Quality Home Inspections performs these special pre-listing inspections, and we stand behind our report. We re-inspect any work that you have done afterwards and can update the inspection report accordingly. If you’re not in the Hampton Roads area, find an inspector in your area that provides the same service; it will contribute greatly to your piece of mind!

 

For the final part of this series, I’ll give a surprising spin on Transition Year Homes that can be very financially lucrative to you and your clients during this upcoming year.-Floyd

About Floyd Gibbs

Floyd Gibbs is the owner and senior inspector for Quality Home Inspections. He is a class A contractor, Certified Master Inspector, and Certified Real Estate Inspector. Floyd has performed over 8,000 inspections and throughout that time has provided accurate, informative, and reliable information to home owners, buyers, and REALTORS®.