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There is an Active Leak. No, There Isn't. Yes, There Is.

By
Real Estate Agent with Long and Foster REALTORS (703) 470-4545 0225085927

Home inspection negotiations can often be fraught with discord and disagreement,  especially when the current owner has substantially different standards when it comes to home maintenance.  Or doesn't apparently believe in home maintenance at all. 

When a Seller, though, is in complete denial about an issue when the proof is staring him in the face, well, I feel as if my head is going to explode. 

Imagine submitting a home inspection report with a clear photo of a moisture meter reading 100%, along with a thermal image clearly outlining an active leak. 

Seems pretty clear to me.  

Imagine,  if you will, receiving a response from the Seller, which essentially says, "There is no leak.  No further inspection necessary." 

Hmmm...no leak.  He's denying there is a leak despite pretty clear evidence to the contrary. I don't get that.

Finally, after going back and forth a few times, his agent came back to us and said, well,  the seller knew there was a leak, but had been unsuccessful in finding it, so he just said there was no leak.  Because he could not find it. 

Oh, okay.  I guess.  Progress? Well, maybe, but rest assured, the Seller's request to do some of the other requested repairs is absolutely denied. We don't want you so much as repairing a hose bib;  we do not trust you now.

It did not have to be this way.  

The Seller merely had to acknowledge there was a leak and allow us to bring in a roofer to investigate the cause and pose a solution.  We weren't even asking for a fix - yet - we were only asking for an extension for further investigation because unknown water issues are not issues with which our Buyer wishes to deal. 

When you're selling your home and a home inspection brings up issues with which you would rather not deal, rest assured, the Buyer is not going to be happy to take on unknown issues.  But I can promise you, the transaction will go much smoother if you do not attempt to ignore a problem or pretend it does not exist.

At best, the truth will be uncovered and the transaction possibly irrevocably harmed. 

At worst, the Buyer will walk away.  And the next Buyer will not only undoubtedly uncover the same issues but it could be weeks (or months) later, after your house has been on the market for a while, so you may be looking at a lower net sale and a larger number of days on market.  

And the problems are still there

It doesn't pay - figuratively or literally - to deny the existence of problems.  Best to confront them head on and see what the damage is.  At the end of the day, our imaginations are often worse than reality and you may unnecessarily tank a transaction before you even know what the fix is. 

Kartik Subramaniam
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Susan Haughton excellent advice. Confronting a problem head on, with integrity, seems like a recipe to long-term success to me. 

I cannot fathom how that seller tried to deny clear evidence of that leak. 

Jun 24, 2016 08:47 AM
Susan Haughton

It's unfathomable to me;  I don't understand denying something while staring at proof. 

Jun 25, 2016 03:24 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

Never had anything this blatant be outright denied by a seller.  That's craziness.

Jun 24, 2016 09:32 AM
Susan Haughton

It's just crazy.  He came around, though, and we met a roofer at the property this morning.  He has some issues.  

Jun 25, 2016 03:24 AM
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

I've had emphatic denials several times. They usually come around when you let their agent know you are backing out and that they need to disclose the problem to other potential buyers Susan Haughton 

Jun 24, 2016 12:00 PM
Susan Haughton

Exactly, Bob "RealMan" Timm !  When I called last week to let the agent know I was preparing the notice to void, all of a sudden, the extension magically appeared.  ;-)

Jun 25, 2016 03:25 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Susan, and Virginia is the wild west when it comes to sellers and listing agents not disclosing - even trying to hide - known problems after their first buyers walk on unresolvable inspection issues.  I'm amazed at some of the stuff that goes on in that market!  And the new thermal cameras are really turning into the buyers' friend!

Jun 24, 2016 01:38 PM
Susan Haughton

Interestingly, Patricia Kennedy,  when we looked at the property detail, we discovered it had been listed last fall with a different agent, was under contract and fell out.  My money is it fell out on the home inspection.  Today we had a roofer there and the homeowner sort of let slip he didn't have a good inspector (with a thermal camera!) and felt he got the raw end of the deal.

Jun 25, 2016 03:27 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Susan. This is often something that happens but I have also experienced the opposite in my own home.

Jun 24, 2016 11:38 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Susan I had to laugh at your title!  Some sellers get pretty stuborn and just don't want to deal with reality of the situation - until they really have to.  Today I've got one of the craziest request lists I've seen in a long time.  They asked for a non-existent hall outlet to be working. HUH? It doesn't exist, it's not going to exist. How can an outlet that doesn't exist - not be working?  And there is more.....

Jun 25, 2016 05:44 AM
Susan Haughton

Anna Banana Kruchten  LOL. I do not feel quite so alone in my insanity this week.  And your reminds me of an insane VA appraisal I will be blogging about, involving an invisible fireplace, much like your invisible outlet.

Jun 25, 2016 05:58 AM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

Great post!  I can see why Patricia chose to highlight it this week!

Jun 26, 2016 12:52 AM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Susan, this is a fantastic post and I thank you for writing it. And what I would really like to know is.... HOW DID YOU FIND OUT ABOUT THIS? I DIDN'T TELL ANYONE ELSE!!!!!

And that is all I have to say on the subject. 

Except, OMG.. fix it. Hire a professional and FIX IT. And fix it before you put it on the market!!!!

I have no idea why people think this is a case of plausible denial. 

Jun 26, 2016 01:05 AM
Susan Haughton

Andrea Swiedler  Thanks for the nice comment;  yeah, I just do not get it, either.  The evidence is RIGHT THERE!  LOL

Jun 26, 2016 01:58 AM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Susan, I included this post in today's Last Week's Favorites!  And that picture looks like it belongs in a frame on the wall. 

Hope you enjoy the rest of your weekend. 

Jun 26, 2016 01:14 AM
Susan Haughton

Thank you, Patricia Kennedy for the ultimate compliment, being included in your list. 

Jun 26, 2016 01:59 AM
Alan May
Jameson Sotheby's International Realty - Evanston, IL
Home is where the hearth is.

It seems to be a knee-jerk reaction (sometimes) for the seller to blame the inspector for issues.  They're either incompetent, or they actually 'caused' the problem.

Sellers often don't really have a good understanding that the inspector doesn't actually have any "skin" in the game... they are typically an unbiased reporter.

Jun 26, 2016 02:11 AM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Equity Advisors

Well if I cannot find it it must not exist. What a mature response and I absolutely would not let them do the other repairs.

Jun 26, 2016 03:06 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

For a seller that has been in a house a lot of years, there can be problems that are unknown to them, but to just deny they exist because of lack of knowledge or frustration is a sure way to have a house sit on the market a long time

Jun 26, 2016 11:25 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Susan Haughton ,

I'm so glad Patricia Kennedy featured your post in her Sunday high-lights of the week! Excellent post..you are right always confront an issue that comes up in the inspection head on. Does not pay to stick your head in the sand! Our over active imaginations can conjure up all kinds of troublesome issues that may not be issues at all.

Jun 26, 2016 09:26 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There is a group of biologists using AE sensor to trigger noise when termites munch on wood and map location of noise on a laptop.  It is too much threat for the traditional visual, tent termite workers. They try to block the technology as the localized treatment of 2 or 3 sections is all it takes. This significantly reduce the repair cost or profit.  So far the service provider does limited liability work because of skteptism received on a propritery technology they developed.

Jun 27, 2016 02:37 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Oh brother. The proof was right there; all they had to do was say, "Oh, is that where that pesky leak is? I gave up on it!". 

Jun 27, 2016 02:42 AM
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Great advice!  You definitely can't argue with the FLIR!  I've used some more basic ones on searches and they are brilliant.  The model shown there is used by fire departments quite often to look for fires inside walls.  Great technology!

Jun 27, 2016 02:56 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Denial a river in Egypt.

Jun 30, 2016 06:33 AM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Sometimes our patience is really tried being REALTORS in Virginia Susan Haughton 

Jul 10, 2016 10:56 AM