A city’s Point of Sale inspection is important for both the Buyer and the Seller.
A Point of Sale inspection gives a Buyer peace of mind when purchasing a property because it enables him to feel reasonably certain that the home is safe and sound and meets the city’s minimum housing requirements. The POS also helps the Buyer because it forecasts lending violations that an appraiser may cite. Most of the time, these violations are required to be completed prior to closing on the sale. The POS also predicts home inspection recommendations which the buyer may request to be made. Since all of these corrections can take some time and often a buyer wants to be in a property within 30 days, having the POS inspection completed upfront will aid in an on-time closing.
BUYER TIP: Buyers should always have the home professionally inspected whether or not there is a city Point of Sale inspection required.
A Seller should have the Point of Sale inspection completed prior to putting the home on the market. By having the POS inspection completed and correcting the violations upfront, this allows the Seller to advertise a violation-free property. Since Buyers usually over-estimate the time and cost required to make the repairs, a property advertised as violation-free creates quicker sales as well as higher sales prices due to the time and money savings perceived. To prepare your home for an inspection, your Realtor may be able to point out certain violations before the inspection is performed. There are many apparent violations such as GFCI’s within 6 feet of water, A/C and Furnace clean and checks, railings for stairways, peeling paint, windows that do not open and close, missing screens on windows, etc.
SELLER TIP: It is important to correct issues with licensed contractors. Once all violations are corrected, the city will issue an Occupancy Permit which is required to transfer a property in a city with a POS. City inspections are usually good for 6 months.
As a Realtor who works with both Buyers and Seller, it is always easier to negotiate a sale when the POS inspection is completed and all of the violations are corrected. It is beneficial for the Buyer and Seller because it takes away a lot of the anxiety of what may or may not be required to correct and the cost of doing so. Having the inspection performed before the home is listed and taking the time to get the issues addressed will definitely aid in the sales process. This is one of the important steps in getting your home ready for sale!