Here in Marin County the first thing we do these days is get all reports and inspections on a property before putting it on the market. That means home, pest, and where applicable sewer and city inspections. It also means doing seller’s disclosures before looking at offers. Buyers want to know what they are buying up front, so having professional evaluations is often the difference between attracting a motivated buyer who is willing to pay top dollar, and a skeptical buyer who may not even want to make an offer. Additionally, having everything up front will often remove ammunition from the buyer’s negotiations during their physical inspection period. In the best-case scenarios, the buyers will waive their inspections. When they already know about the deficiencies on the property, they most often take them into account with their offers.
My last blog was entitled, “Fixers are HOT.” This fall has been very good for the fixer market not just in San Rafael, but throughout Marin County. With fixers it’s especially critical to have everything for buyers to review prior to making offers. While there are a lot of contractors out there looking for their next project, the people who will pay the most for properties are families willing to do the work because they don’t need to make a margin. In the absence of disclosures and inspections, your best potential buyers will not make offers.
It's important to keep in mind the costs and lead time for generating inspections and reports. Here’s what to expect in San Rafael:
1) City Resale Inspection ($383) – they are backed up. It may take a week or two to even get on the calendar of the inspector, then another week for the inspection. Once the inspection is done, it’s typically turned around the same day
2) Sewer Inspection ($275-$400) – sewer companies can typically come out within a week. Not all sewer companies are the same, and some will recommend unnecessary pipe replacements even if there is a slight defect in the pipe. That’s necessary in the Ross Valley Sewer District, and in Southern Marin, but not in Las Gallinas Valley Sanitary (LGVSD). Sewer video review is LGVSD is $250 with a 10 working day turnaround. This can be expedited within 5 days for an additional $250. The videos themselves vary in price between sewer companies and the scope of work. If they need to go through the roof or a pull a toilet it’s more. If there is a cleanout, it’s less and very straightforward
3) Home Inspections (up to $800) – they aren’t cheap, but they are essential. Depending on home inspectors they are typically 1-3 weeks out
4) Pest Inspections ($250 - $400) – 2-3 weeks out, they are kind of slammed right now and often are even busier in the spring. Be wary of who you use. I use companies out of Sonoma County. Their quotes on addressing issues are often much less than Marin companies
There are plenty of other inspections you can get. Chimney inspections are sometimes needed, but the key is to see what the home inspector has to say before ordering additional inspections. Roof inspections are unnecessary if the roof is in decent condition. If it’s at the end of it’s life, you are going to want to get quotes on repair and replacement costs. If you’ve got a pool, it should be inspected too. Just steer clear of one Marin company in particular, which will give unnecessary expensive quotes which buyers will try to use in negotiations, even they aren’t scared off by the report.