Real Estate Inspection prior to listing your home on the market listing are highly recommended. This is essentially based on the age and condition of your home. You should have at a bare minimum a Home Inspection as well as a Termite Inspection
Why is this so important? Consider the following:
If your buyer obtains FHA financing, the Lender Required repairs may be substantial and could end up costing you, the seller, more money than anticipated to make those repairs. With FHA financing the lender requires certain repairs be made prior to lending on the home. For example any Section 1 Termite work will be required to be repaired. Examples included but not limited to are: dry rot, termites, active infestation, leaks and electrical issues.
If your buyer is obtaining Conventional Financing, what the lender will require prior to loaning on the home is minimal in comparison to an FHA offer. However, health and safety requirements typically are required to be fixed (gas leaks, electrical issues, minimum retrofit standards, hazards etc.).
Cash offers are safe and quick because a lender is not involved. However, the buyer can still request repairs prior to purchasing the property.
VA Financing has the most stringent lender repair requirements prior to closing. The lender will require all Section 1 and Section 2 work to be completed prior to closing . Examples of Section 2 work is anything that if not taken care of can lead to a Section 1, like caulking. Health and Safety Issues will also be prior to close requirements. Examples include installation of CO’2 detectors, smoke detectors, water heater bracing and any other minimum retrofit requirement. The lender will also not allow the buyer to pay for the Termite Inspection and that cost has to be paid for by the seller.
As you can see it would be most helpful in the beginning of a transaction to know what repairs the home will need in regards to the type of financing your buyer obtains as it could affect the type of financing you are willing to take on your property.