Why Are So Many Buyers Walking After Inspections? My Theory.

I'm finding the opposite.  Buyers are afraid to 'rock the boat' with inspection issues, for fear they won't find another house in their price range because they all keep going up.

#19

We have dealt with this a couple of times this year. Unfortunately some buyers want the perfect home and don't look at as they are buying a  pre owned home.   Having a preinspection done is a good idea but that doesn'e guarantee that the buyer isn't going to have one done and their inspector write up a bunch of items that they find. This would be great if more inspectors looked for the same thing.

Buying or selling a home has their associated expenses and should not be taking lightly.

The Sellers home inspection usually cost the same as the Buyers home inspection. Reason being is we inspect the property the same.

The Sellers home inspection is not intended to replace the Buyers home inspection.

Most all home inspectors follow a national or state regulated Standards of Practice. We all are suppose to look at the same things. Some people, like myself, look at more than the Standards of Practice. The Standards of Practice is a minimum requirement, which some inspectors coming from a fast food restaurant can't even grasp.

It's all about knowledge and experience. One of our functions as a home inspector is to find significant deficiencies. It's then up to the buyer or seller to determine what course of action to take. If another inspector found something I missed. I would be embarrassed, learn my lesson, and give Kudos to him or her.

I see no negatives in a Sellers Home Inspection.

Many sellers here will allow a pre-inspection by a buyer's inspector before the date that offers are due.  That allows the buyers to know what any issues are up front and make their offers without an inspection contingency.  Saves a lot of time and trouble on both sides but comes with a slight risk to the seller that an inspector or potential buyer could inadvertently damage something in advance of a contract.  I have buyers sign a release of seller liability form so all players are protected as much as possible.

The favorite bail-out here is for document review, either condo, coop, or home owner association docs (CC&Rs in other area's parlance), when a buyer in a contract has a short window after receiving the docs to walk without indicating what they are unhappy about.

Had one last year where the buyer got married during the buying process and decided to use the Inspection Clause as an out to move off with new hubby. Worst part, was they constantly lied and the sellers went ahead with many repairs before we figured out what was happening.

In a really hot market it isn't uncommon for buyers to present offers on properties sight-unseen.  I'm seeing more comments in the showing remarks about 'no blind offers' to make sure that the buyer (or at least the agent) sees the property prior to submitting an offer.  I think this does cut down on the number of later cancellations.

I think that a good portion of buyers are getting tired of the AS IS CLAUSE. Foreclosures have it, short sales have it, so when things go wrong or there are problems, buyers don't want anything to do with it. 

I also say it has to do with what the problem really is! Huge horizontal crack in the basement? Property is built on a spring - there are tons of things that make buyers run.

I agree with #29. Buyers should be looking for significant deficiencies. I have had issues in a brand new home that I had built to pre existing home that I purchase. I have a current issue right now. Seller has made or in the process of making repairs. Buyer still not satisfied. The Seller tells me enough just kill the deal. If a buyer wants a perfect house they need to build from the ground up. Not buy pre-existing.  If a buyer wants out just say so.

As of July 1 Missouri is changing from gas inspection being a seller responsibility to a buyer inspection item.  The inspection contingencies for building, radon, survey, termites, and now gas will be expensive enough that a buyer would have to have a good reason to walk away from that much money invested in the property whether everything passed or not.  This is all done within about 2 weeks of offer acceptance and another couple of days for negotiation.  I do not have many buyers that would easily walk away from a couple thousand dollars of inspections unless there is an unaffordable cost of furnace, structural failure or very expensive roof without seller insurance assist.

As of July 1 Missouri is changing from gas inspection being a seller responsibility to a buyer inspection item.  The inspection contingencies for building, radon, survey, termites, and now gas will be expensive enough that a buyer would have to have a good reason to walk away from that much money invested in the property whether everything passed or not.  This is all done within about 2 weeks of offer acceptance and another couple of days for negotiation.  I do not have many buyers that would easily walk away from a couple thousand dollars of inspections unless there is an unaffordable cost of furnace, structural failure or very expensive roof without seller insurance assist.

Hi Sarah, we agree, there does seem to be somewhat of a kneejerk reaction from some buyers.

Interesting post.  They may be using the Inspection to get out of something because of buyers remorse.  They are offering too much too fast and are not ready.  The other fact is they may think because they are paying more they should get more.

I think a very fast decision in a hot market is sure to lead to buyer's remorse. That's why these people seem to bolt at the slightest provocation. Buying a home is still serious business, even if buyers are forced to move fast so as not to lose out.

I have to agree with a previous comment, I tell my buyers before inspections that if this is now a new home, it's not going to be perfect, they should only be worried about the big ticket items if they want the home.

This is an interesting commentary on human psychology, and it makes sense. When you feel pressured into making a quick decision, it seems natural to question that decision.

I believe they bail because they get a case of buyer's remorse combined with the "I want what I can't have" thought process.  If there was another home they wanted that they missed out on, they feel the one they missed out on must have been better than the one they offered on.   Unless it is a killer deal they feel they were cheated somehow.  No one likes to lose, and in home buying no one really wants to settle and I think sometimes that is how they fee..  It is a big investment. 

Many buyers wake up with buyers remorse and know that it is possible to exercise their unrestricted right  to terminate the contract, during the option period in the State of Texas.  Buyers are frustrated as they are forced into quick decisions. During the Buyer's Market, Sellers had to make their home letter perfect to garner the interest of buyers. Today Buyers, in many cases, are buying properties that bear little resemblance to the home they thought they would purchase.

Sarah, The custom in Silicon Valley is pre-listing inspections to avoid surprises and subsequent problems.  But, we see the most fallen through transactions when buyers are nervous about and lack confidence in the direction of the market.

Unless the inspection results reveal a lot of issues (read that as expenses), most buyers seem to re-negotiate. Prelisting inspections can save many deals.

There does seem to be more buyers remorse when the buyers are pushed into paying more than they are comfortable in spending, and any difficulties can push them over the edge.

I always talk about repairs right up front. There are many Buyers that don't want to deal with repairs.