Why More Realtors Are Paying for Inspections Before the For Sale Sign Goes Up

Contract cancellations are spiking across the housing market, and Real Estate Today can reveal that pre-listing inspections are fast becoming the industry’s frontline defence.

The latest REALTORS® Confidence Index puts cancellations at 6 per cent nationally, while Redfin data shows nearly 15 per cent of homes under contract collapsed in May – the highest ever recorded for that month.

Behind the statistics sits a common culprit: unexpected findings in buyer inspections that rattle confidence and derail deals.

Scottsdale agent Melissa Bailey has felt the impact firsthand. One listing fell through four separate times.

“The first buyer had a home inspection and did not even provide us an opportunity to repair anything but just cancelled right away,” she says. “If there’s any inkling that a house needs repairs—even if they’re not major—a buyer will back out.”

A Proactive Shift

In response, a growing cohort of agents are urging sellers to get pre-listing inspections before the property hits the market. The rationale: remove uncertainty, fix what you can, disclose the rest.

Coldwell Banker’s Cara Ameer says the practice is no longer optional in a market where stretched buyers are hypersensitive to risk. “It’s better to get a grip on your home’s condition on your time and your terms,” she tells RET. “Disclosure is confidence. And you want that buyer to go into that transaction with confidence.”

HomeTeam Inspection Services, which first marketed pre-listing inspections in 2017, reports surging demand across its 200 offices.

“Sellers avoid the anxiety that comes with waiting for an unknown outcome during the buyer’s inspection process,” says Matt Cook, its business development director. Some franchises now provide signs that read This Home Has Been Pre-Inspected — a “stamp of approval” Cook likens to certified pre-owned cars.

What Agents Should Be Doing Now

RET analysis shows agents adopting pre-listing inspections are using them strategically to keep contracts intact and win more listings. Key steps include:

• Set the agenda at the appointment: Gauge whether the home’s age, condition, or vendor disclosures make a pre-inspection advisable.

• Eliminate minor red flags: Encourage sellers to handle low-cost fixes such as dripping taps, loose fixtures, or slow drains that can disproportionately worry buyers.

• Leverage inspections in marketing: Use clean reports or completed repairs to strengthen buyer confidence and justify value.

• Shift the narrative: Position inspections not as a cost but as an insurance policy against renegotiations, delays, or cancellations.

• Balance transparency and pragmatism: Vendors don’t need to fix every item uncovered; upfront disclosure is often enough to keep a buyer engaged.

  
  

Industry Turning Point

Not every property requires this step. As Las Vegas agent Joe Graziano explains, “If they’re saying there’s leaks or other problems, I’ll suggest an inspection just to make sure there aren’t other items that might come up and jeopardise the deal.”

But with higher interest rates, rising insurance premiums, and inflation stretching household budgets, buyers are more cautious than ever.

RET analysis shows pre-listing inspections are shifting from optional to standard practice — giving agents a new lever to keep deals alive.

In today’s climate, one thing is clear: transparency sells. And agents who adapt quickly to this trend will be the ones still closing when others see their contracts collapse.