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When Should The Seller Be Told About Inspection Issues?

By
Real Estate Agent with Douglas Elliman Real Estate in Babylon NY

when should the seller be told about inspection issues?

When Should The Seller Be Told About Inspection Issues?

Seems like an obvious answer right? How about waiting 2 weeks and at the contract signing? Thinking maybe you have the seller by the kahonas? Wrong! You do not wait 2 weeks after the home inspection to let the seller know the home inspection results. You do it immediately.

One of my listings got a 2nd showing and an offer came in immediately after that showing. A higher offer that was hard to ignore and of course my seller took it. Who wouldn't? I asked the first selling agent via text message the day after the inspection if there were issues and I was told NO. Two weeks later there were issues and the first selling agent didn't think it was a big deal. It was a very big deal to wait that long. The issues were little but there were a lot of them.

When I informed the first selling agent we had a higher offer come in I asked if the buyer was willing to come up and they replied, "my buyer is hoping the seller will remain loyal and give him the house for his original offer". "If the second buyer backs out my seller will give your buyer the house for the offer he originally accepted" was my message I delivered on behalf of my seller.

A few days later the first buyer was willing to forget the inspection issues and just sign the contract. Maybe they realized playing this game of hostage wasn't working and the second higher offer was real. It was too late.

Word to the wise: Real estate is not a game. It's not Monopoly. There are real people and real money involved. By playing "the game", you will lose.

Comments (31)

Sheila Morales
Kauai Property Shop - Kapaa, HI
Your Kauai Hawaii Agent

Regardless of contract language regarding inspection periods, or the lack thereof, it's just plain unprofessional for an agent not to communicate to the listing agent that there may be issues the buyer wants resolved.

May 14, 2013 04:56 PM
Rob Lyszczarz
RE/MAX Properties Unlimited - Westfield, NJ
This is how attorneys and lawmakers keep busy in NJ
May 14, 2013 06:03 PM
Karen Anne Stone
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate

Jennifer in #11:  Real estate attorneys present at "contract signing?"  Am I guessing that that is what we would call "closing?"  And THAT'S the time when this doofus attorney suggests that the seller "fix" something?  Sounds to me like what really needs to be "fixed" is that attorney.  Take him down to the animal shelter.  I hear they do "fixing" for a very nominal fee.  That should calm him down... LOL.

I sure am glad we do not use attorneys at closings here in Texas.  Or even for putting the contract paperwork together.  How unnecessary.  But, then again... almost everything is new here... so there are relatively fewer problems.

May 14, 2013 08:09 PM
Beth and Richard Witt
New York, NY
The best Retired Brokers !!!!

Good one Jackie... Congrats on the Feature... Happy Day...

May 14, 2013 08:26 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Chris Ann, most times buyers do not take this long and our contracts are drawn after any inspection issues are resolved.

Hi Nick, I've had 3 buyers this year take their time getting the inspector to the house. They got lucky since no other offers came in.

Hi Richard, We do not have inspection addendums. They just do it and then the attorneys are put in touch for the contracts.

Hi Christine, yes the inspection is done before contracts are sent out. We are an attorney state so the seller's attorney sends them to the buyer's attorney to look over then calls the buyer in to sign and to take their downpayment check. Then it all goes back to the seller's attorney.

Hi Karen, it's not just agents that think real estate is a game. There are so many buyers that think it's a buyer's market here on Long Island. When they lose a house because they stalled, then they rethink that.

Hi Jennifer, I know your pain. Inspections are not for fixing the little things. They are to uncover major issues as you know. All it takes is one person to put an ear worm to that buyer and things go haywire.

Hi Sheila, agreed! I did take into consideration that maybe the buyer told their agent there are no issues since this agent wasn't representing the buyer. Waiting until the 11th hour cost the buyer the house.

Hi Rob, ya think? :)

Hi Karen Anne, most attorneys are good and they are there to protect the sellers and buyers. We are an attorney state and most likely will always be. There is a lot of money in the attorney lobby to keep it that way.

Hi Beth and Richard, thank you very much and have an awesome day!

May 14, 2013 08:44 PM
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

In PA you have a specific set of days that inspections must be done and a Reply to Inspections presented to the seller.  That set of days can be negotiated up front as well. 

May 14, 2013 08:57 PM
Rick Snow - Selling El Paso TX
EXIT West Realty - El Paso, TX
Cool Deals on Hot Real Estate in El Paso, Texas

In Texas the inspections don't come until after the contract and then any repairs or price adjustments are negotiated. If the buyer has purchased an option period from the seller then the buyer has the right to walk if the parties can't come to a mutually agreeable alternative. Otherwise, or if the option period has expired, the seller is not obligated to fix anything or adjust the price and the buyer is obligated to buy.

May 14, 2013 09:04 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Good stuff Jackie.  I would want to know as soon as possible if I was the seller.  Congrats on another feature!                                   

May 14, 2013 09:28 PM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

It's only courtesy to notify the seller or their agent on any significant inspection issues that came up as soon as possible. There's nothing to be gained by "surprising" them with the bad news.

May 14, 2013 10:03 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Marc, it's interesting how real estate works in different states. I've seen buyers here forego inspections just to make sure they get the house.

Hi Rick, Now that is interesting. I wish we had these contingencies for inspections here.

Hi Jared, thank you very much my friend.

May 14, 2013 10:07 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jackie, there is a negotiated number of days in our residential contract which requires the buyer to notify the seller of repairs. In your case I can see where a seller can get very upset.

May 14, 2013 10:18 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jackie, CT is an attorney state as well, but the time-lines are detailed in the contracts: i.e. inspections within 10 days, report to sellers within 48 hours of inspection and response from seller within 48 hours. Miss any of those time-lines and it's too bad

May 14, 2013 10:38 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Michael, a timeframe doesn't go into our contracts since the inspections come first then we go to contract.

Hi Ed, Do you do the contracts first and that is why you have timeframes placed into them?

May 14, 2013 11:18 PM
Bryan Robertson
Los Altos, CA

Good advice Jackie.  Whenever I have a buyer do a home inspection we send a copy of the report as soon as we get it.  If something comes up we didn't know before, it gets addressed immediately.

May 15, 2013 02:16 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Bryan, Thank you. Usually the issues are addressed by receiving the portion of the report that shows the issues not the entire report. Sometimes I'll get the entire report. NY real estate is complicated and sometimes it doesn't have to be.

May 15, 2013 03:06 AM
Connie Harvey
Pilkerton Realtors - Brentwood, TN
Realtor - Nashville TN Real Estate

Jackie, I'm not sure I understand why the contract wasn't signed before the inspection. Our inspection contingency explains exactly how much time the buyer has to do the inspection and give us the results. No news means we proceed to closing with no repairs.

May 15, 2013 06:07 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

I always have the inspector send the report to the seller as well. I want the seller to know as quick as possible.

May 15, 2013 12:26 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Connie, because we are an attorney state. Contracts are drawn when all inspections are good and everyone can move forward.

Hi, I want my sellers to know quickly too. I guess some think by having issues at the contract signing the seller will "cave". Not in this case.

May 15, 2013 10:32 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I am blown away at how very different the practice of real estate is in different states.  

May 17, 2013 10:53 PM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Susan, same here. I've always knows that other states are different but some were really descpritive and gave me more insight.

May 17, 2013 10:56 PM