Despite the intense buyer demand in Pasadena, Eagle Rock, Altadena, Silver Lake, Los Feliz and other east side enclaves in the Los Angeles region, selling your home will have some challenges and one of the key ways to get ahead of the biggest challenges is through inspections. 

Buyers are eager to buy but are far from desperate. The intense market has actually created a more savvy buyer. Buyers are touring 20 to 50 houses in their buying cycle and many have submitted offers that didn’t make it to escrow. 

Through this experience, buyers have developed an eye for red flags. Sellers looking to be on the receiving end of a bidding war with the hopes of a profitable and expedient sale should be aware of this and focus some effort on fixing those little problems before the first showing. 

Pre-Inspection

During escrow, the person buying your home will hire an inspector to inspect your house within the first days of escrow. This inspector is going to uncover every flaw your house is hiding. That door that sticks, the outlet in the laundry that doesn’t work, a cracked floor tile, all of it is going to come to light.

Many findings are minor and easily fixed but some small signs can be an indication of a major problem or a long list of problems could scare a first-time home buyer away. A buyer that turns away in escrow will delay the sale of your home, cause more caution in the next buyer, and could cost you tens of thousands of dollars in the end.

I always advise my clients that are preparing to sell their homes to do their own pre-inspection from the same inspector that usually does the inspections my buyers will do. This small investment ($400-$600 depending on square footage) will create not only a list of precise repairs but also gives you leverage during showings. 

By proclaiming that your price is based on pre-inspection you will extend confidence to would-be buyers that are naturally suspicious. 

Another benefit of doing this inspection will give you professional insight as to the mechanical status of your home, features that your agent can share with touring buyers and their agents. 

Knowing your home has copper plumbing, a roof that is 15 years old and a bolted foundation is incredibly impressive and confidence installing for those buyers you are looking to impress.

It baffles me and honestly frustrates me when I walk into a showing and ask the listing agent about the home’s plumbing or electrical and they have zero ideas of the status of it. It is our job as agents to present our client’s homes in the best possible light. Transparency and honesty are always, always, always the best policy. 

If the home’s electrical system is still knob and tube, state that. Better yet, get a quote from an electrician on what it would cost to update it and share those quotes during counteroffers. 

Once armed with the results of your pre-inspection, know that not everything in that list must be fixed. Major issues can be addressed with quotes from contractors, negotiated in escrow when they surface or repaired. A seasoned agent can walk you through the list and discuss the strategy. 

An agent that has a strong handle on residential construction is a priceless benefit to hone sellers. Screen for this when you are interviewing agents. 

Termites Nom Nom Nom

Every house in Southern California has termites, every single one and every agent will have their clients do a termite inspection during escrow before the complete the purchasing of a home (condos are generally exempt from this as exterior walls are the responsibility of the HOA and it is highly unlikely that termites will eat their way to an interior wall with their being significant damage in the outside). 

Just like with a general inspection, a buyer is going to do a termite inspection on your home. Termite work can be in the thousands of dollars. 

California state law requires a seller to sell a house with a clear termite bill of health. 

In a hot market, some sellers can sell a home in demand with a “termite waiver” that places the onus of termite work in the buyer but with a couple of caveats

If this is your approach, you need to proclaim this before people draft their final offer and you should provide a termite inspection stating how much termite work is involved. 

It is my professional opinion that an owner should complete termite work as it is the honorable thing to do and that pricing with this in mind is a better approach. 

Remember, every home requires maintenance and as a homeowner, you should be maintaining an annual termite treatment program as well as basic maintenance to keep your massive investment in the best condition possible. 

Time and Funds Are On Your Side

Great agents can predict the future, if your home has a problem, large or small, it will come to light. Use the time before listing to get ahead of it.  I go through weeks, if not months of planning preparation before putting a client’s prized home on the market.

One of the main reasons sellers opt to not make these repairs is the outlay of cash. Painting a house, landscaping, and tackling that list of repairs can be costly, especially for a home that you will no longer own soon, however, that is the wrong mindset for maximum profits. The small investment to showcase your home in the best light is what will draw the top offers and see the sale through escrow.

This is why flipping homes makes sense. A flipper buys a home that needs a little work, tackles the repairs and upgrades, and sells it for more than their total investment. If funding these repairs is a challenge for you, Compass has a special no fee/ no interest program called Compass Concierge that will grant you the funds to do all of these upgrades and repairs. The money lent is taken out after the home sells. It is a remarkable program with zero downsides.

If you have questions about inspections, Concierge, prep work, need an inspector, or a great termite company (the big brands you may know are not always the best), please feel free to reach out. I love talking homes, especially older homes, and always welcome inquiries. 

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Michael Robleto is a Los Angeles based REALTOR® that specializes in Historic, Pre-War  and Mid-Century homes in Pasadena, Altadena and east side cities like Los Feliz, Silverlake, Eagle Rock, and Mount Washington. Michael uses his vast knowledge of older homes, residential construction, and modern-day marketing to predict and solve the many problems that arise in real estate transactions. His client accolades of insight, prompt communication, integrity, and hard work support the fact that he is not your average agent. 

Michael leverages his personal passion for historic architecture to provide his clients with the unknown insight into the pros and cons of older homes.  Michael, the son of a contractor, a California native, grew up in an older Bungalow home and has spent 23 years in Southern California admiring the unique architecture of the region. Michael brings 20+ years of negotiation and sales experience to his seven-year career in residential real estate.  He often writes on homeownership strategy, historic residential architecture, and related topics that can be found on Facebook, YouTube, Twitter, and Instagram under the common profile name of his blog; BungalowAgent. 

Michael sits on the Board of Directors of Pasadena Heritage and is frequent volunteer for the preservation efforts of numerous historic neighborhood associations and the LA Conservancy.  When not working you can find Michael on hiking trails statewide with his faithful German Shepherd Axel.