Inspections are Where the Rubber Meets the Road…

With the help of a couple talented agents, getting a buyer and seller to agree on price can be a beautiful thing! It’s an exciting time for both parties and optimism is usually very high. Back in May, one of my clients thanked me at this point for my hard work and said, “It’s been a pleasure working with you!” Whoa!!! Not so fast! There’s still work to be done. Often times, inspections are where the rubber meets the road as it can take an emotional toll on both parties. In most cases, buyers want their new home to be “move-in ready” and sellers don’t wish to spend any more money than they need to.

Whether you have a buyer who is asking for unreasonable repairs or a seller who refuses to heed requests, inspections can very easily unravel a deal in a matter of hours. Perhaps at a later date, I will outline the entire inspection process, but for now….I have a few suggestions for both buyers and sellers. Every real estate transaction is unique, but these are general rules of thumb:

Buyers

1. Always research your inspector or ask your real estate agent for a few recommendations. It can be beneficial when the agent and inspector have a prior working relationship.
2. Be present for the inspection.
3. If you aren’t buying new construction then assume that there will be small maintenance type things that come up at an inspection. A good inspector will point these out to you, but generally shouldn’t be asked of the seller.
4. If there are large problems uncovered (roof, electrical, plumbing leaks, structural issues), then refrain from asking for minor fixes such as touching up paint, repairing nail pops, smoke detectors, etc. The sellers might think you’re “nickel and diming” them which is usually not received well.
5. Remain calm and remember not to put too much emotion into this part of the transaction, even if the seller does. Deals can go off the rails in a hurry if both sides decide to take offense to the other side’s position.
6. Ask yourself: “Would I find these repairs reasonable if I were the owner of the property?”
7. Communicate via your agent.

Sellers

1. Have your agent be present for the inspection if possible.
2. Crunch numbers of all requested repairs before responding. Rely on data rather than your first impressions to guide your response.
3. Ask yourself two things: “Will this problem come up in most inspection reports?” & “Is this something that I’d ask for if I were the buyer?” It is very important the seller answers these questions honestly. Getting upset and killing the deal only to have the next buyer ask for the exact same thing can be a very costly mistake.
4. Consider getting an inspection done before you put your home on the market.
5. Communicate via your agent.

Please send this along to anyone you think might benefit from this information. Of course, I’m only an email away and always happy to help!

seth.lejeune@foxroach.com