Kennesaw Life’s Certified Pre-Owned Home Program
When you prepare your home ahead of time using the Certified Pre-Owned Property (CPO) program it increases the value of your home to potential buyers. Most people are familiar with the term Certified Pre-Owned as it refers to a car. They understand that if the car is Certified it has been inspected and meets the company’s guidelines for quality and excellence.
Do consumers pay more for Certified Pre-Owned Vehicles? Absolutely! Will they pay more for Certified Pre-Owned Homes? Absolutely!
The process for Certifying your home prior to listing is fairly simple:
- Have your home inspected for mechanical and structural issues as well as a termite inspection
- Review and address any issues found in the report
- Have your home appraised
- Provide a One Year Home Warranty
As I’m sure you know, potential buyers want to purchase a home that is in excellent condition regardless of its age. Finally, there is one secret all Sellers should know. Buyers make their decision to purchase a home based on emotion and whether or not they love the home. But buyers can fall out of love with a home just as quickly as they fell in love, and nothing can make this happen faster than an Inspector giving them a long list of items that need to be repaired.
Advantages for the owner of a Certified Pre-owned Property:
- Helps buyers feel immediately more comfortable with the property
- Increases the home buyer’s perceived value of the property by reducing the purchase risks
- Gives the sellers the opportunity to eliminate certain defects before the buyers arrive
- Allows the sellers the proper time to make any needed repairs in order to more effectively market the home in the most positive light
- Reduces the likelihood that buyers will hire their own inspector
- Reduces the likelihood of costly surprises being found by a buyer’s inspector after the sellers thought they had a firm offer
- Virtually eliminates emotionally and financially draining renegotiations
- Increases the likelihood that serious offers will turn into closings
- Reduces the buyer’s negotiating leverage regarding the existing property conditions
- Helps the sellers honestly disclose everything about their home, reducing their liability for disclosure
Home and Pest Inspections
- Inspecting the home before putting it on the market will point out any existing or potential problems. That way you can resolve them before they can become a much bigger issue during closing. And if you fix any issues, the home will also be in better condition for showings, making it more marketable and helping you get the best price.
- If you have the house inspected you can also save money. When you know what needs to be fixed you can get multiple bids and pick the best contractor at the best price. And you won’t be up against a tight closing schedule so “Rush Charges” shouldn’t be an issue.
- The pest inspection can also save the seller money. If wood destroying insects are found during the inspection to certify the property the homeowner can simply have the area spot treated and repaired. When such defects are found by during a buyers inspection it raises red flags about future infestation. So buyers commonly want the seller to have the entire property treated so as to protect it against further damage.
- Having an appraisal up front adds credibility to your asking price.
- Homebuyers tend to be suspicious and probably think your home is overpriced. When considering what price to offer for a property the buyer and their agent will obviously look at the lowest priced comparable properties. This is a great strategy when you are buying. With an appraisal in hand, the seller can stop this strategy right in its tracks!
- An appraisal done by a Certified Real Estate Appraiser is evidence that the price was arrived at in a scientific way, rather than just by pulling figures out of the air.
- Having a full written appraisal speeds up the whole sales process by putting everyone’s minds at ease. The buyer will feel assured that they are not being taken advantage of and may be more willing to finalize negotiations quicker. • It also can help the buyer qualify for mortgage financing. Banks are not going to lend more money to a buyer than the property is worth. Lenders always require “hard” evidence of a property valuation or appraisals before they are willing to lend their money.
- An appraisal can stop bargain hunters from disputing your asking price. A written home appraisal might prove to be good ammunition to use on the“bargain hunters” who will try to pressure you into selling your home at a“giveaway” price. A written appraisal is hard for any real estate buyer or agent to argue against.
Providing a home warranty can benefit the seller as much as the buyer. A home warranty is a policy on the property, covering items such as the appliances, air conditioning and heating systems, electrical, plumbing and more.
Normally the policy is for the first year the new buyer owns the home. If something breaks down in the house, the new owner pays a reasonable service call. Covered items are paid for by the warranty company. This can help the new owner significantly considering the cost of repairing or replacing systems in a property.
Home warranties benefit the seller in two ways. Should something go wrong with the house within the first year, such as the air conditioning fails, the buyer will be covered to the extent of the warranty and will be less likely to seek damages against the seller. As well, many of the properties systems are also covered by the seller during the listing period.
Maximizing the Certified Pre-Owned Property
Once you have completed the CPO process, The Scott Smith Realty Group will add the CPO badge to the amazing marketing that we do for your property. This will ensure that the buyers see that your property has been certified and is, therefore, a step above the competition!
How to Get It Done
To complete the steps to have your home meet the Certified Pre-Owned property criteria simply complete the inspections and appraisal. You are welcome to use any Georgia licensed inspector and appraiser who will provide you with complete documentation. Kennesaw Life will help you get the home warranty set up when we list your property for sale.
As an added service to our clients, we have negotiated preferred rates from Georgia licensed inspector(s) and appraiser(s). Please be understand that Kennesaw Life Real Estate doesn’t represent, endorse, suggest or receive any compensation from these service providers. They are offered as an option for our clients. Should you choose to use one of them you will be working with them directly and Kennesaw Life Real Estate will not be involved with that portion of the process.
Frequently Asked Questions
- What if I want to list my home but my inspections are not complete? We can list your home prior to your inspections but we don’t recommend it. Having a Certified Pre-Owned Home will make your home stand out from all the others and we want to start off your marketing your listing that way.
- What if I want to list my home prior to repairs being made? The first two weeks of a listing are the time when you receive the most exposure. We want to show your home in the most favorable light right from the beginning.
- What if my home does not appraise for what I would like my selling price to be? Since the appraisal is not public knowledge you do not have to disclose the price that is derived. Of course, if it is lower than what you wanted to sell the property for this is an important indication of the true market value.
- What if I cannot afford to do the repairs? We will work with you to help you prioritize which repairs are the most critical for you to receive the most money for your home. However, if you don’t repair items that arise in the report you will have to disclose them on the Property Disclosure.