Blog > Pre-sale inspections: why Silicon Valley sellers inspect first

Pre-sale inspections: why Silicon Valley sellers inspect first

by Eric & Janelle Boyenga

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property nerd guide · sellers

In Silicon Valley, a complete disclosure packet with inspection reports is part of how a home is presented to buyers. Here's what goes into that packet, what each report covers, and why we recommend ordering inspections before you list.

By the Property Nerds® of the Boyenga Team at Compass · NextGenAgents™

core state disclosure

TDS

pest report sections

2

late-delivery window

3 or 5 days

lead paint rule

Pre-1978

the short version

Why inspect before you list

A pre-sale inspection doesn't create problems. It finds the ones a buyer's inspector would find anyway, on your schedule instead of theirs.

When the reports are ready on day one, buyers can review the home's condition before they write an offer. That tends to mean fewer surprises in escrow, and fewer requests to renegotiate after you've accepted a price. It also lets you decide calmly whether to fix something, offer a credit, or price it in.

There's a legal reason too. Under California Civil Code section 1102.4, giving the buyer a report from a licensed expert, such as a structural pest control operator, contractor or engineer, can limit the seller's and agents' liability for the items that report covers. And if a required disclosure reaches the buyer after an offer is signed, the buyer gets three days after in-person delivery, or five days after mailing, to cancel in writing. Delivering the packet before offers come in avoids that late window.

the reports

The inspections most sellers consider

Not every home needs every report. The age of the house, its systems and what we see on a walk-through help decide which ones are worth ordering.

ReportWhat it looks atWhy it helps
General home inspectionThe whole house: visible structure, roof surface, plumbing, electrical, heating, water heater, appliances and more.The big-picture view buyers rely on most.
Pest (wood-destroying organism) reportTermites, fungus, dry rot and conditions that lead to them, by a licensed structural pest control company.Findings are split into Section 1 and Section 2 (see below), which shapes negotiations.
Roof inspectionRoofing material, flashing, leaks and remaining life.Roof questions often come up in escrow.
Sewer lateral inspectionA camera look at the pipe from the house to the street sewer for roots, cracks and breaks.Problems are hidden underground and can be expensive. Ask us whether your city or sanitary district has its own rules.
Chimney inspectionFirebox, flue, liner and masonry condition.Worth it for older homes and any fireplace that hasn't been checked in years.

Depending on the home, we may also suggest a foundation or drainage evaluation, an electrical panel review, or a look at a pool, spa or large trees.

property nerd note

California regulations divide a pest report into two parts. Section 1 lists items with visible evidence of active infestation or infection, or conditions that have resulted from it. Section 2 lists conditions likely to lead to infestation or infection where no visible evidence was found. Buyers often focus on Section 1, so we get bids before listing and decide with you whether to complete the work, credit it or price it in. Also good to know: the state's Structural Pest Control Board lets anyone check whether a property has had an inspection within the last two years.

the disclosures

What goes in a California disclosure packet

Inspection reports are optional. Most disclosures are not. For a sale of a one-to-four unit home, these are the core pieces:

Transfer Disclosure Statement (TDS)

The Real Estate Transfer Disclosure Statement, required by Civil Code section 1102 and following. You describe the home's features and condition and any defects you know about. Agents complete their own sections too.

Seller Property Questionnaire (SPQ)

A California Association of REALTORS® form that asks additional, more detailed questions about the property beyond what the TDS covers.

Natural Hazard Disclosure (NHD)

Tells buyers whether the property is in mapped zones such as a flood hazard area, a dam inundation area, a very high fire hazard severity zone, an earthquake fault zone or a seismic hazard zone. Sellers can use a third-party report company to prepare it.

Lead-based paint disclosure

A federal rule for homes built before 1978. You disclose any known lead-based paint or hazards and share any reports you have.

There are others, including notices about the Megan's Law database and statements about smoke detectors and water heater bracing, plus any disclosures your city requires. Some fiduciary sales, such as certain trust and estate sales, are exempt from the TDS itself, but other disclosures and the duty to share known material facts still apply. Your agent and attorney will confirm what your sale needs.

your checklist

What to gather before we start

  • Permits and final sign-offs for any remodels or additions
  • Receipts and warranties for roofs, windows, HVAC, solar and major repairs
  • Any earlier inspection, pest or engineering reports
  • Records of insurance claims, leaks or repairs
  • HOA documents, if the home is in an association
  • Notes on anything you've noticed but never fixed
01Walk-through with us
02Order the right inspections
03Get bids on findings
04Fix, credit or disclose
05Complete TDS, SPQ and NHD
06Packet ready at launch
07Buyers review before offers

nextgenagents™

How the Boyenga Team helps

Order the right reports

As NextGenAgents™, we recommend the inspections your home actually needs and schedule the inspectors, so you're not guessing.

Turn findings into a plan

Restoration and pre-listing project management is one of our specialties. Compass Concierge can front eligible repair costs until closing.

Package it for buyers

We assemble a clear, complete disclosure packet so buyers and their agents can review it before they write.

talk to a property nerd

Thinking about listing? Start with a walk-through.

We'll tell you which inspections make sense for your home and how we prepare and sell homes across Silicon Valley.

Get my home value(408) 373-1660(650) 383-8606

faq

Pre-sale inspections and disclosures: FAQ

Are pre-sale inspections required by law?

No. California doesn't require a seller to order inspections, and the law doesn't require a pest inspection before a sale. If the contract or the buyer's lender requires a pest report, though, it must be delivered to the buyer before title transfers. Disclosures like the TDS and NHD are required for most sales.

If my inspection finds a problem, do I have to disclose it?

Yes. Once you know about a material issue, you need to disclose it. That's why we review reports with you early, while you still have time to decide how to handle each item.

Do I have to fix everything in the reports?

No. Many sellers fix some items, credit others and leave the rest for buyers to weigh in their offers. The goal is a clear picture so the price reflects the home's real condition.

Won't buyers order their own inspections anyway?

Some will, and that's fine. Having reports ready lets buyers decide sooner, often with fewer conditions in their offers, and makes surprises in escrow less likely.

Sources: California Department of Real Estate, Disclosures in Real Property Transactions (dre.ca.gov) · California Code of Regulations, Title 16, section 1990 (Section I and Section II definitions) · Structural Pest Control Board (pestboard.ca.gov) · California Association of REALTORS® standard forms list (car.org). Laws and forms change. General information, not legal advice.

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