ABC Pre-Owned property Certification includes the residential structures and its appliances. Currently only 1 to 4 family-use dwellings are being accepted in this program. It is intended that the program shall also undertake other types of larger properties in future.
Essentially the ABC Pre-owned property certification is a two step program: 1. First the home is inspected by a duly state licensed or accredited and qualified Inspector. 2. Then a warranty is placed on the home from a recognized carrier for a period of time, but no less than about 30 days. With these two steps, we are able to provide a complete review of the major components of the home and back it up with a warranty of performance for a period of time to the parties. The warranty can be extended to years beyond the purchase.
Until recently, typically most homes have been sold subject to a home inspection contingency. Essentially these pre-purchase home inspection reports are for the benefit of the clients ordering it to apprise themselves of the condition of the home. Due to the nature of the transaction, the loyalty of the inspector is towards one party, their client and hence the reports are mostly geared towards the perceived defects found in the inspection. These reports are then used to renegotiate the contracts. Rarely is there any emphasis on the attributes of the home. Without complete information about all the facets of the home the buyer is left with a skewed picture of the intended purchase. Unfortunately despite several State and other agencies trying to create a uniform standards of practice, for home inspections, in reality, no two home inspection documents on the same property look alike even on the reported segments, because there are no uniform standards of measurements applied therein. Unlike, a mere home inspection which is conducted for the benefit of one party ordering it, ABC pre-owned home certification is for the benefit of both parties regardless of who had ordered it.
Most states have some sort of certification and or warranty program applied to the sale of new home, which are pursuant to some inspections and binders from a warranty company. ABC pre-owned property certifications tends to mimic the widely accepted certifications for new homes, except that it is applied to pre-owned homes. While pre-owned automobiles are certified and warranted nationwide, pursuant to an inspection but until recently there has been no such widely accepted program for pre-owned homes. ABC pre-owned property certification is just like any other certification that you see for an expensive valuable like a pre-owned auto, or a boat etc.
The fact is that most major issues on a home that has been put up for sale will generally be discovered at the pre-purchase home inspection by the home inspector or by the parties later on. In most cases it is a myth, to believe that the qualified inspector would not disclose the major defects. Many states have lemon laws or place the burden of disclosures in some form, upon the sellers, to declare major defects (truth in trade) before the physical transaction. ABC pre-owned property certification tends to eliminate such surprises and sticky situations.
Inspectors using ABC protocols to affix ABC seal are pre-screened and sworn to be independent, unbiased and fair in their assessment of the condition of the product being evaluated. Our standards for appointing the inspectors are the highest in the nations. Continuous training and compliance tests ensure that all parties follow the guideline universally.
ABC certification gives the sellers ample time to fix the issues at their own pace or accept the declared condition(s) as stated. Hence all parties are aware of the physical condition before any offer is placed on the property. It prevents renegotiations or worse yet "No deal".
ABC certification also sets the realistic expectations of the sellers and buyers alike, because without any prior knowledge of the true condition of the home, the list price is usually set at the peak and it ultimately disappoints the parties when any major defect is uncovered.
ABC certification does not preclude any home inspection by the buyers. In most cases, the buyer could also use the same independent third party inspector(s) to walk them through the home if they like and or use a different inspector. Either way the parties are assured of the validity of the condition statement certificate by ABC. Because this certification is not a mere home inspection but it also includes a performance warranty on the components certified, in the event of any unforeseen circumstances, parties are covered under the ABC limited warranty program. In most cases the buyers are also able to extend this warranty period by years from the time of inspection.
ABC certification improves the system efficiency and eliminates re-inspections by several parties. Single ABC certification report can be given to all prospective or successive buyers and agents. It is a win-win strategy for all.
For obvious reasons, sellers like to deal with only the qualified buyers who have been pre-approved by the financial institutions, for fear of tying up their home in a contract which may not yield any results. Essentially for the same reason the buyers do not want to spend money on a home inspection that they do not have much clue about. If for any reason, the buyer did not buy the home after the home inspection, the fees paid for home inspection would be wasted. However on one hand, if the buyer knew that the home had been ABC certified, pursuant to a pre-listing inspection or before any offer is placed on it and the home was warranted as well; the buyers would be very motivated to look at the ABC certified listings before any others that were not certified. Likewise with ABC certification, the seller reduces the chance of losing the trade and or to renegotiate.
ABC certification is also a valuable tool for sellers and their agents to keep their listing above the crowded inventory as they showcase their ABC Certified property to the buyers with "nothing to hide condition statement" and warranty to back it up, which is available for all parties to review. ABC's certification process was derived at, after extensive consultations with the majors in the industry, members of NAR, franchises and associations. We conducted thorough trials of the pilot program and it is now being unveiled for use in North America, in implement-able phases. Currently process version P.1.5 is in use for pre-owned properties.