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At what point do you throw in the towel?

As an Atlanta Home Inspector, in this market I have been wondering at what point do you throw in the towel on a home with problems? Or better yet, are you even allowed to throw in the towel? There is some things that I just don't understand and one of those things is "Why more people don't get a pre-listing inspection done on a home before doing all that you do?" It seems to me and of course this is just my opinion, but it seems like people go about this a little backwards.

pre listing home inspection

First as a Realtor, you spend your hard earned time researching, driving and talking and hours on end taking the dream home hunters around to the different homes. Now I know that first off they are looking for the perfect home, so you have to over come that mindset, because even a brand new home is not going to be perfect. We should know we've inspected quite a few. And yet everyone wants the perfect home.

So now you've spent your time with the folks, with the kids and maybe even the in-laws at this point. You've exhausted almost all your options and when you think "I can't show them anything else" YOU find that perfect home they love it, it just feels right and on and on they go.

So now you've got to do all the negotiating and the paper work and it's more hours of precious time, only to have the final step to do and that is the home inspection because it just wouldn't be right to let them buy this house without one, Right? Now you find out the house has some major issues and the home sellers are not budging because they think they have the perfect home too..... So where do you stand?

Wouldn't it be easier and wouldn't you chose to look at Pre-Certified Homes first? If you went into a subdivision and there were8 houses for sale and three had a sign that said "This home Pre-Inspected by IHI Home Inspections" wouldn't you try and get your client to look at those first. Wouldn't that be almost as good as the old fashioned security blanket?

And if you're the listing agent would you not be willing to work some kind of deal maybe even pay for half the inspection so that you would not have any surprises at the end of the deal. I hate surprises like that. I would rather know the issues. If the sellers were not willing to budge then can you throw in the towel?

Now I'm hoping that someone can shed some light on this and if I'm completely off base forgive me, I'm not a Realtor, never have been a Realtor don't know the ins or outs or rules and everything else that a Realtor does. I'm just a home inspectors wife looking in from the outside and trying to find some answers. Can you thrown in the towel? Do you HAVE to take a listing? Why don't people do pre-listing inspections? Is it the fear of the unknown? It's still unknown until the buyers inspector shows up and then it is virtually to late.

So many questions from

Bonnie - TheHomeInspectorsWife

Posted by Atlanta's Home Inspector for all your Atlanta Home Inspections -David & Bonnie on 03/01/2008 01:32 PM

Comments (48)

atlanta georgia home inspections, atlanta georgia home inspector, prelisting inspections, canton home inspection

48 Comments on At what point do you throw in the towel?

FEB

2008

Your right, that is why I always advise my sellers to get a home inspection prior to the sale.

Take care!

RJH

Hi Robert, that was quick (I didn't even think I had it posted yet) and you know what I bet your homes that have a inspection done first sell quicker? Thanks for stopping by and commenting have a great weekend.

I call home inspectors the world's cheapest insurance policies.....have fun.

Larry, some times cheap is good, but have you ever had a physical for life insurance, they're really thorough. And look at the policy you get afterwards. ;-)

Thanks for stopping by and commenting

MAR

2008

I've actually had that house recently that the buyers just stop the inspector mid way through the inspection and said enough is enough, that every thing he looked at was just another thing that clearly wasn't permitted. Then finding signs of a fire in the ceiling that was never repaired, just painted over.

Sometimes I think it is just best to walk, but when is that time. I've been preaching to sellers for about a year now that the pre-inspection can increase the possibility of a fast sale. People feel better knowing you are not hiding anything.

Todd, YOU are so right, especially in the world we live in with trust veing such an issue right now, the more you open up the better people feel. Thanks for stopping by and commenting.

The best time to "throw in the towel" is when it gets dirty. I love the picture of that house with the porch wrapped around it. That has always been my favorite home design.

Sean Allen

We can ask and ask but it is rare when a seller does have one done. Who knows maybe that will catch on one day.

David. I can tell you why owners don't get pre-listing inspection. They only intend to fix what the buyer catches. They have a mind set that, if the buyer doesn't find a defect, I don't have to fix anything.

They chalk defects up to normal wear and tear, use the old "as is" escape clause and figure they're O.K.

WRONG. Our buyers do a home inspection and it's up to the buyer as to how much they are willing to live with. Most buyers don't want to buy a home knowing that they are going to have to spend time and money on repairs and upgrades following settlement. Many don't have the money.

This is why buyers need a good buyer agent who will take the home inspection seriously and carefully and timely present repairs needed. Too many agents give lip service to home inspections. Some don't even attend. That's one I can't figure out for the life of me.

Some needed repairs are so serious that they become a matter of disclosure for the seller and the agent if that contract doesn't close. Some sellers believe that they are O.K. if the contract is voided because they'll just sell it to someone else. They need some good advice from their agent because now the agent is on the hook for disclosure too.

As for pre-listing inspections. I would estimate that I see about 1 in a 1,000 homes that have been pre-inspected. So, don't hold your breath.

I don't think buyers select houses on the basis of being defect-free. They select them for floorplan, view, school, value, etc. ONCE THEY ARE IN ESCROW, they want them to be free of defects, but that's not what they select for.

A seller's home inspection is a great idea. I try to urge all of my sellers to get one done and I offer to share it with an interested buyer. It is so much easier in the end if all involved parties are aware of any potential problems. Also, most sellers will address any known problems and fix them before marketing the home.

David and Bonnie, you're right in thinking that logically if the seller does a home inspection on their own house before listing it can eliminate surprises during the buyer's inspection after the offer is made -especially if the seller is willing to address all issues that come up that could be deal breakers.

However, in real life it doesn't necessarily make sense for a seller to do this for the following reasons:

It costs money that they do not have to spend - and most sellers don't want to spend anything they don't have to.
It can result in issues being found that the seller won't or can't address so what good did that do?
Worst of all, the seller now has a report of all the things wrong with their house in writing from an inspector so (at least in MA) all of those items need to be disclosed to all potential buyers. So you run the risk of scaring off lookers before they enter your house and can fall in love with it.

I'm not saying that sellers should or should not have their own pre-listing inspection done, but they should be clear on the pros and cons.

I think having a home preinspected could be great!!! However, think of it in this light... I know Florida is different that alot of states and Florida requires Seller's to Disclose anything that may affect the value of the home. Of course, there may be some seller's that don't want to know of anything that may be structural wrong with their home or other defects or repairs that may need to be done, very true.

Hoever, even if a home has already been inspected I would still urge any Buyer making an offer on a home that has been pre-inpsected to conduct their VERY own inspection with their VERY own Inspector. Remember, the inspector is working for whomever is paying his bill!!! If a buyer did not have an inpection of the VERY own perfomed they would have to sign a Hold Harmless Agreement for me!!!

Just another thought!!! Offering a Home Warranty is a great idea, though...it should give both Buyer and Seller a piece of mind.

Boils down to money...often they don't want to spend the money or see the merit in it.

Having a home pre-inspected helps the seller understand what he/she is going to have to fix or deal with when they receive an offer. If everything else was equal, same house, same lot, etc. I suppose that I might but its really up to the buyer to choose what house they want to see. If I'm representing the buyer and the seller has a home inspection already performed, I will recommend that my buyers perform their own independent home inspection. Far too many times we've discovered something that the previous home inspector didn't catch.

I don't think I would opt for showing a pre-inspected home first just because its been inspected. If they like the house, I do feel that it is a plus to be able to give them a copy of the inspection as a way to make them feel more comfortable about the property. I'm more interested in how well the house meets the buyer's needs from a location and floor plan perspective.

I think it's a good idea for the buyers and the buyer's agent to be present during the home inspection so that they can see first hand and talk to the inspector while getting to know what the defects are and what future repairs will be needed on the property. To me the home inspection is part of the buying process and is an important part of understanding the importance of maintaining the property.

Hi Bonnie,

Very well written!

As a listing agent one can suggest the seller have a pre-inspection. That way there shouldn't be any major surprises when the buyer's inspection takes place.

Our Purchase Contracts have an "OUT" clause. It the buyers Home Inspection results in repair cost exceeding a stipulate dollar amount the seller has the option of covering the additional expense. Falling short of that, the buyer is not obligated to perform. Thereby cancelling the Contract with all deposit monies advanced returned to the buyer.

To me, a pre-inspected house just means that the sellers dropped a few hundred bucks. If you hire two home inspectors, you'll get two different lists entirely. And I've seen sellers who refuse to fix anything on the buyers' list-and the deal falls apart.

A few people mentioned agents and buyer's agents being there at the inspection. We have been taught never to go to an inspection--the liability issues if an agent attends are just too high.

Anyone else steer clear of inspections?

Hi there,

I with those who've said just because a home has a pre-inspection I wouldn't be more likely to show it. I'd show it because the buyer wants to see it, that's all. And truthfully if the seller had a pre-inspection that would not preclude my buyers from having one of their gown.

And yes, our purchase agreement although are written present physical condition (similar yet not identical to "as-is") a buyer still have an escape contingency within the early stages of the contract. Congrats on your feature!

Hi again David,

If it's o.k. with you, I'd like to find out if Eliese (above comentor) has her buyers present during the inspection?

I haven't read the comments, so I don't know if this has been mentioned, but my opinion (stress that!) is as a buyer's agent it is my responsibility to approach everything from the seller's side with caution. It is my duty to protect 'the other side', and as such, I take pre-listing inspections as a nice gesture, but pretty much ignore that in the listing.

I can certainly appreciate the concept from the seller's perspective that it is best to catch any potential problems and repair them before they can be used against you, but I just don't think it brings much value to a buyer. If you published the results in the listing and the resolutions to any discovered issues, I might change that opinion, but being inspected doesn't mean being 'fixed'...

I dont see that as a practice here. It sounds like a great idea in practice. Get the inspection then tell the buyer everything what's wrong with it. I think it would prevent sales more then increase them.

So many great responses and I agree with many of them regarding why sellers don't want to and maybe shouldn't have a pre-sale inspection. Yes, it might seem backwards but when I started selling real estate 24 years ago buyers weren't even pre-qualified before they went out looking! Talk about working backwards. Those were the days that we all sat on the edge of our seats until a mortgage commitment was given.

As has been mentioned, every inspector is a little different and they all catch different things. I can't imagine a buyer looking over an inspection paid for by the seller and feeling 100% comfortable about it. They would probably still want to perform their own inspection.

That might turn out to be lucrative for home inspectors but I think it could cost the seller extra money and could actually be detrimental for them for reasons that have already been mentioned.

Congrats on the feature. I have done it both ways and I can tell you I prefer to have the home inspection prior to writing a contract. It made negotiations so much easier.

Many home owners don't really want to know the truth due the the sellers disclosure laws. Theres no certainty that what you find wrong with it, will be noticed by the inspector the buyer hires. On occassion, I've seen buyers waive inspection to insure a quick acceptance. Not something I would recommend, but it does happen,

I'll give you the mindset... not condoning, just passing along...

It is $250-$500 that the seller doesn't have to spend... the buyer will do one anyway.
If they don't have confirmation, they don't have to disclose it.
They just don't want to do any more work on the house.
It won't increase the sale price of the house.

Like I said, I don't agree... just passing along what I surmise.

I have found that sellers are very reluctant to have a home inspection. When buyers have an inspector who is thorough, the sellers and their agents scream bloody murder. They call the inspector bad names like "deal breaker" -- they call attorneys that too! So, maybe inspectors are in good company.

Pre listing inspections really make sense in a slow market. That has a tendency to get more showings.

MAR

2008

In some states certain inspections DO have to take place prior to listing, such as PA- they have to get the roof inspected first among a few other things. I can't believe that there are still buyers out there that DON"T do inspections.....The biggest deterrent for a seller getting an pre-inspection done is the $$$ and also not really wanting to know what is wrong.

If the seller does a pre-inspection are they going to correct any issues that may have come up? Also, as a buyer are you going to trust the inspection report provided by the seller and hope that they corrected any major items, or are you going to have the property reinspected? I can see both benefits and issues with pre-inspections.

I have found that home inspectors can be a blessing or a curse. Many buyers agents even if a seller has performed a physical inspection ---- advice there buyers to get another inspection. (they want a second opinion) Two of my sellers were angry with me and ask that I refund the money that they spend because both buyers used their own inspectors.

I know that it is in the best interest of the seller to address any problems that an inspection can reveal. The only thing is that many sellers are saying that they are not interested in making huge repairs. When I counter an offer I usually put a cap of the amount the seller will be responsible for repairs on inspections and termite work.

I agree that sellers should get their homes inspected prior to putting them on the market. The problem is that most sellers think their homes are "perfect."

I've had a pre-certified home program in place for awhile for my clients. Wrote about it last year and it is still working. My last listing SOLD in 14 days. Only one issue that came up which was a leaky little pipe at the hot water heater which was new between the inspection and final walk-through. Easy fix. By the way the same house one block away at a similiar price has been on the market for 120 days. Hmmmm wonder what sold mine first?

David (& wife), excellent post. I decided to answer people's questions in my own post since it woud take too much room here. Congrats on the feature!

Its kind of like a certified used car.

I agree. It is a little backwards. You fall in love with a house only to be told later of all the flaws that it has and that a compromise is no where in sight.

Oh My GOSH!!!!! Look what happens, David and I went away from Active Rain (everybody by now knows I'm an addict) for a few days and come back to find all this going on. David and our son went and spent a weekend serving on a weekend called VIDA Nueva, which is a Christ focused weekend for teenagers. They are served and shown the love of God through all these other teenagers and guys. Breana and I took some much need and wanted R&R and went and spent the night with my Mom & Dad. Mom & Dads home is new with NO, yes you heard right, NO internet service. It is surronded by beautiful mountains and sits on a rushing river up in the Ellijay area. R & R was wonderful, I actually took a nap after church today. Thanks for the comments and suggestions and I have read each and everyone and will start trying to catch up on all the comments. Also, I don't have a clue about how you get "Featured " on it but that is great news, I had to go and look for myself. Thank you for all the comments and the information that has been posted.

David & Bonnie

Sean, Thanks for stopping by. I too love that style of home. When I was very little my aunt & uncle had one like this and it had a tree beside it that I would climb up and onto the roof and sit there for hours. You could see waht was then considered downtown Roswell from the roof top.

Keith and Robin, hopefully it will catch on soner than later.

Lenn, I know alot of Realtor's that don't come to the home inspection. But then there is alot of them that do. I agree with you about it being a mindset, hopefully that will change, but don't worry about me passing out, I'm not going to hold my breath.

John, I can agree with that and I just didn't know if it would help them to sell quicker.

Gary, I think a home inspection up front is easier too.

Amy, I agree sellers don't have to spend the money, they may not want to know all the problems and everything else.

Celeste, You're right, and know that I think of it maybe I'm one of those hme owners. JK, we did one on our own home first hing, but we may be here for life now. lol

Andrew, I agree with the money issue. That seems to be an across the board objection.

Cindy, I was wondering if the buyers would still have one and from what I have read, it does seem like a lot of agents would recommend it.

Chrystina, I like for my clients to be there, simply because I can explain something and by the tone of my voice and everything else they know that this is either an issue to be concerned about or not to be concerned. I can do that in person so much better than in writing.

Harold, Thank you for the compliment :-) I'm glad to hear through several of you that there is an OUT.

Leigh, If the home inspector is any good, then that few hundred bucks dropped by the seller could be a potential blessing to you and your buyer, especially if the sellers are like my parents, great do it your self people, and they fixed just about everything that was found, and disclosed the rest. Just like home inspectors, no two agents are just alike. It's all about personalities.....

Eliese, We encourage ours to be there. But you would have to get opions from the different areas.

Lynda, I can understand that you would only show it because the buyer wanted to see. I guess when I wrote that statement, I was thinking about subdivisions where all the houses look so similar.

Lynda, be my guest, I was also thinking maybe you two could chat through a blog. That is a good question.

Joe, I understand your responsiblilty to the buyer, and I didn't know if after seeing my report it would make a difference, I would urge the sellers to have copies available for buyers, which I would gladly provide. I like opportunities to get my work into hands of those who might use me the next go around. And you're right being inspected does not mean fixed. :-)

Robert, maybe that is why we don't see them here as much either, but it sure is worth looking at especially in this market.

Judy, I agree there has been great responses and very different opinions which I value greatly. I truly want to know the why's and how's and be a compliment to the agents I serve and do the best job possible while like many of you have mentioned serve my client (the seller or the buyer) the best that I can. Yes, I can see where in some instances it could be detrimental for the reasons mentioned. But a well trained inspector should catch the items either way.

Linda, Thanks for the congrats. I could see where having it pre inspected could cause negotiations to go easier.

Michael, I have to admit, there is some things I didn't want to know also, BUT it is also things that once I was trained it was very obvious. No hope there.

Lane, The # 3 mindset would be the ones of my parents, who at this point they just want to retire to Elijay and not have to worry about the issues at the Canton place, and I can unserstand that. They will just price their house accoringly when they do get ready to sell it.

Joan, I have yet to kill a deal, but I did have a house commit suicide while I was there. Man did I hate that. You truly never know what you will be called, but the truth be know that happens in almost every industry. So I just let it roll and don't sweat the small stuff.

Wayne, I'm glad to hear that it has helped in the Oregon area.

Vickie, I didn't realize that there was required pre inspected items. I'm from PA originally, moved to Atlanta over half of my life ago. :-)

Christina, soulds like great questions to me. I guess it all depends on the person.

Lorraine and Loretta, I would be insterested in hearing more about the two that wanted their money back. That has me thinking of a whole different scenario.

Diane, I can relate, you should read my post "Don't call my baby ugly."

Cindy, sounds like a lady after my own heart, to bad you're way out in VA. I'd love to be working with you. I think I'm going to have to find that post and read all about it. If you come back here before I get there leave me a link.

Joseph, thanks for the commpliment, looks like I'm going to have to go and see what you have to say about the whole issue :-)

Dee Dee, The used car is exactly waht I think about only a home is WAY MORE expensive.

Christy, There is nothing worse than having TO FALL OUT OF LOVE. But I've seen it happen all the time. I hate that side of it and I'm usually the bearer of the bad news.

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