For starters, what’s a Move In Certified inspection? Think for a moment about the wide range of houses that are for sale these days. Some are definite “fixer-uppers,” some are in great condition, and many houses fall in between. A Move In Certified inspection is targeted toward houses in better condition, with the idea of attracting buyers who don’t want to bother with fixing major items right away.
The seller uses the Move In Certified inspection to demonstrate that there are no known major systems defects and no known safety issues. Obviously, the terms “major systems defects” and “safety issues” have to be clearly defined for this to make sense. A seller who wants to have their home be Move In Certified hires the inspector, fixes any major systems defects and safety issues, and then makes the report and the repair information available to potential buyers. There’s a Move In Certified yard sign that’s available, too.
So does this strategy work to sell homes? There are some cities where this service has been available for almost a year, and there are some reports that it is working as intended. But it’s really to early to know what the impact will be. And most areas of the USA don’t even have this available. And there are at least a couple of big questions that only time will answer for sure.
Several kind folks at LinkedIn helped with suggestions and ideas about Move In Certified.
Adam Waldman: As a real estate agent, this is something that I hope takes off, but sellers are generally very reluctant to spend money on things that they feel are unnecessary. Of course, it would be a good idea to do this, as long as the buyer realizes that they still should get their own home inspection done. It could be the difference in having the buyer bid on a home though, as this would show that the sellers are doing their part to be forthright with potential buyers.
Who’s really liable if a major system goes bad? Probably not the inspector, since the inspection is just a brief “snapshot,” not a warranty. The inspector describes any concerns, then the seller takes over to get them fixed. The seller is the one certifying that there are no known major systems defects or safety issues. It’s like a disclosure, with a lot of detail added.
Ken Schneider: It would seemingly transfer the cost of inspection from the buyer to the seller, which as a seller might put me in a position of being libel if the inspection was bad. As a seller I’d rather just buy insurance to cover the new buyer if things go bad. Finally as a buyer I don’t want to just accept what is given me by the seller, I want a bulldog inspector that works for me. In closing I’m not sure what could move the needle in this market, but I don’t think this has a chance.
Is this inspecting, or is it marketing? Traditionally, the two are separate: The inspector describes the home without reference to its ability to sell, while the real estate agent markets the home in the best light possible. But with Move In Certified, the inspector is in effect publishing a marketing item for the seller and agent to use. This could be a conflict of interest if everyone isn’t careful. The Move In Certified website has pages directed to buyers, sellers, inspectors and real estate agents.
From LinkedIn: There is a lot of debate on this issue. As a Realtor I like to have a pre-inspection if there are obvious problems which need repair (and actually get them fixed) and which will cause an issue at a home inspection contingency. The problem arises when a seller has paid the first inspector and then another comes through and finds different issues, resulting in more money outlaid. I’d have no expectation that a buyer would actually take that pre-inspection as gospel and not do one of their own (I always recommend a home inspection as a buyer’s agent), thus adding more expense to the process. Not sure there’s enough trust between buyers and sellers to just take this at face value.
There are folks out there saying that Move In Certified is the future for inspectors and for sellers. They predict that eventually most, if not all, inspections will be purchased by the seller as part of their marketing effort. While there is certainly a place for pre-listing inspections, such as Move In Certified, hopefully buyers won’t become complacent. Buyers will still need to do their due diligence in respect to this major purchase.
From LinkedIn: It’s been my experience that a buyer is still going to have their own inspection - whether the house has been pre-inspected or not. The upside, of couse, it that for a house that has lacked maintenance, it’s a great way to let the seller know what needs to be done. The downsides? Well, I’ve run into issues before where the buyer’s inspector found things the pre-inspection missed and the seller was furious. . . . Lastly, if the buyer does not have thier own inspection, then they have no recourse against a defect missed by the pre-inspector as that inspector didn’t work for them.
Posted on February 19th, 2008 by James
Filed under: Observations | No Comments »