Special offer

Seriously You Do Know There Is a BackUp Offer in Place - Right?

By
Real Estate Agent with HomeSmart Real Estate AZ Broker BR030809000

 

Kathleen Daniels  created a very clever challenge - No Fooling Around April 2017 Let's Get Real Contest. I've enjoyed reading many of the post thus far and can relate to almost all of them. Clearly there is a general theme of pet peeves running around in our business and it's not that pretty.

 

My business partner and I  talked about this challenge and I asked him - what do you think bugs me the most in our business?  He offered a few ideas and while they can be annoying at times they weren't really the biggest pet peeve - pain in the you know what this past few years. But then he brought up the dreaded home inspection FRENZY request lists.  BINGO!

 

Several years ago our Home Inspection Addendum to the contract was changed and it created a 'shi* storm' of huge proportions with many newer agents not having any clue as how to fill them out properly. A section was added to separate out warranted items from non- warranted items. On the surface it appeared like a good idea but OMG it turned into a nightmare pretty quickly. Our  state legal hotline received 2 out of 3 calls on this inspection FRENZY issue and I heard more complaints about it in CE classes I taught. There was so much mis-information floating around with agents and it seemed to escalate over time. We spent  quite a bit of time discussing how to handle the inspection FRENZY craziness -  successfully.

 

It was not uncommon to get a list of 50 to 60 or more repair requests - and pretty ridiculous requests I might add. Now to some of you around the country that won't seem unusual, but in my market that is highly unusual and never happened in my previous 25 years in the biz. If a home is that bad then most buyers would just walk away - period - unless of course they're investors and then they buy it 'as -is'.

 

To add to the ridiculousness most of our properties had been in multiple bid situations and we had a back up offer in place and maybe 2 back up offers. Experienced agents understood this fact. Newer agents, not so much.  Excellent back up offers put sellers in a strong negotiating position during the inspection period. This is not rocket science.

 

Seriously you know there is an excellent back up  offer in place and your client most likely will end up loosing the deal - right? 
I'm sure you remember we received at least X offers, right?

 

Our sellers were well educated way before we went to market to expect this inspection FRENZY craziness. We also discussed about how we could successfully keep the deal together (if at all possible) and say yes to some requests that made sense and no to the others.

 

Add to that our homes had a pre-inspection before we went to market and  repairs/improvements were done. So we knew the condition of the home - well I might add. We have an excellent team in place and they know exactly what needs to be done and what doesn't and what 'will be or might be' called out in an inspection. It's not rocket science!

 

The whole inspection FRENZY mess was finally brought to a screeching halt in February this year with a new addendum that 100% deleted the sections that created the whole mess. So for now, my biggest pet peeve is over and business can go on per normal. All I can say is Thank Goodness!  It was NUTS absolutely NUTS.

 

 

 

Seriously You Do Know There Is a BackUp Offer in Place - Right?

 

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Comments(35)

Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

 

I feel your pain. Had a home inspection lasting 5 hours, received a 94 page report and everything was marked marginal...including new windows, new roof, new kitchen, new appliances , new baths, new oil tank, new flooring.. etc. Inspector says his job is to "FIND TOTAL PERFECTION"  We took the back up cash offer and hopefully we will have closing tomorrow!

 

Apr 06, 2017 08:05 PM
Anna "Banana" Kruchten

Margaret Rome, Baltimore Maryland  sure you betcha! Bye Bye and I might suggest they think about building a new home. At least that what I say to folks thinking a 40 year old home is going to be perfect. Heck even new builds have a punch list but that is the builders responsibility.

Apr 07, 2017 12:40 PM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Glad your pet peeve was retired.  Nothing but smooth sailing and serenity. (as long as the margaritas hold out).  :)

 

Apr 06, 2017 08:12 PM
Anna "Banana" Kruchten

Mick Michaud I'm pretty sure almost all agents and us brokers are very glad that chapter is behind us.  Yes to a margarita - later!

Apr 07, 2017 12:41 PM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

Here in California, it's not the form, it's the inspection. Don't get me started.

Apr 07, 2017 05:07 AM
Anna "Banana" Kruchten

Hella M. Rothwell, Broker/Realtor® I get it!  I won't get you started!

Apr 07, 2017 12:42 PM
Brigita McKelvie, Associate Broker
Cindy Stys Equestrian and Country Properties, Ltd. - Lehigh Valley, PA
The Broker with horse sense and no horsing around

Good morning, Anna!

Wow!  What a mess!!  Some agents here believe that the fewer inspection contingencies in a multiple off situation, the better.  I have a client who has a friend who is a real estate agent.  We kn ew about multiple offers going in on the property that my client really, really wanted.  The other agent suggested just having the septic inspection contingency.  I suggested on including the home and water.  Turned out there was an inssue with the foundation.  Glad that my client listened to me instead of the friend.

Brigita

Apr 07, 2017 05:57 AM
Anna "Banana" Kruchten

Brigita McKelvie, Associate Broker interesting that the agent suggested waiving all but septic....sounds fishy to me. Good thing they listened to you and not the agent friend.

Apr 07, 2017 12:43 PM
Macy Babb ... North Georgia Realtor
Re/Max Around Atlanta Realtor - 404-234-6166 - Cartersville, GA
Realtor, SFR, HUD/REO Certified

I hope to never see anything like that here in GA.... the inspections by unlicenced "inspectors" are bad enough

Apr 07, 2017 05:59 AM
Anna "Banana" Kruchten

Macy Babb or inspectors have very little experience or years of practice - a lot of that going on here.  Our guys have 25+ years in the business and thankfully do an excellent job.

Apr 07, 2017 12:44 PM
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

One can easily see how this situation can get out of control with poorly informed or inexperienced agents.  Great post!

Apr 07, 2017 06:24 AM
Anna "Banana" Kruchten

Sandy Padula and Norm Padula, JD, GRI NMLS#1483386 totally out of wack but that's why we experienced agents are so needed.

Apr 07, 2017 12:45 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

That's quite a story, Anna, and an awful lot of aggravation and upheaval. You have to wonder why it was done in the first place!

Jeff

Apr 07, 2017 06:55 AM
Anna "Banana" Kruchten

Jeff Dowler you know how comittee's go!!!  I've been on several and I swear I'll never do it again!

Apr 07, 2017 12:46 PM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Anna. This is a good one. I hadn't thought about this but you have hit it out of the park.

Apr 07, 2017 08:20 AM
Anna "Banana" Kruchten

Sheila Anderson it was beyond nuts for way too long here. Totally out of control and thankfully that mess has come to an end.

Apr 07, 2017 12:47 PM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

That mentality is one we are experiencing in Bristow,VA.   Buyer's agents will call before writing to find out they will be competing.  I'm left scratching my head as lowball offer after lowball rolls in.  In any case, multiple interested buyers put buyers in a bad negotiating position.  In fact, I had to remind a buyer's agent at the time of inspection requests that we had a back up that was waiving inspection.  So frustrating.

Apr 07, 2017 08:54 AM
Anna "Banana" Kruchten

Chris Ann Cleland exactly - make absolutely no sense to even consider a low ball offer.  We get a lot of those too and sellers simply reject them. They're a joke in a hot market.

Apr 07, 2017 12:48 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

We, too, have had annoying issues with inspection addendum changes but nothing like this. I totally understand how frustrating this would be! Glad the forms got changed and it worked out for now :-) Kasey

Apr 07, 2017 10:22 AM
Anna "Banana" Kruchten

Kasey & John Boles and the team at Jon Gosche Real Estate, LLC glad you don't have to deal with this craziness! And glad that we no longer do either!

Apr 07, 2017 12:49 PM
Jon Kolsky
Kolsky Realty & Management - Long Beach, CA
Licensed California Real Estate Broker

Anna Banana Kruchten, CRS ~ I am so glad you don't have to worry about that addendum anymore. I can see how that would drive any broker/agent/seller crazy

Apr 07, 2017 10:26 AM
Anna "Banana" Kruchten

Jon Kolsky me too!

Apr 07, 2017 12:50 PM
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Oh Geeze.  That sounds ridiculous.  I am so glad they had a change of heart on this addendum.  

Apr 07, 2017 10:51 AM
Anna "Banana" Kruchten

Belinda Spillman I'm surprised I didn't write about this a long time ago!  It was so out of control.

Apr 07, 2017 12:50 PM
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By Real - Alexandria, VA
Alexandria Virginia Homes For Sale

Anna, that would definitely be annoying. 50-60 requests?! OMG. Our home sales are technically as-is now per the contract and buyers will ask for a couple things here and there but, not much. If they do ask for a lot, especially if it's not safety related or not working at all the sellers are on to the next one. 

Apr 07, 2017 12:31 PM
Anna "Banana" Kruchten

Amanda S. Davidson we are now as well, basically and that has leveled the playing field. Of course we still negotiate out inspection request but they're not so crazy over the top anymore.

Apr 07, 2017 12:52 PM
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

What a frustrating situation an addendum put you in. In our market, the offer has  built in for inspection. Most sellers like for the number of days to be as short as possible, generally 5-7. It does not often create a problem for us.

Glad that the state was getting good feedback about the problem they created.

Thanks for sharing.

Apr 07, 2017 01:07 PM
Mike Reyman
eXp Realty - Media, PA
Delaware County Real Estate

I can completely relate to this!  We are in a very agressive sellers market and good homes get loks of attention even before they are formally listed (another pet peeve but that's a different subject).  I just recieved an "accept the property in it's current consdition" and almost fell off my chair.  I guess the buyers REALLY want the house!  Cheers!

Apr 07, 2017 01:08 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Always good when an error is resolved in paperwork. We have several quirks in our agreement of sale that are not understood and always create a discussion. Glad it got resolved so you can now relax with easy to resolve home inspections.

Apr 07, 2017 03:12 PM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

This is one of my pet peeves also Anna. In a hot market why would anyone think the seller will do a ton of repairs?

Apr 07, 2017 08:53 PM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Oh, how I LOVE having back-up Offer in-place and totally agree with you, Anna - of COURSE sellers have the upper hand and why first-position buyers think that asking for a laundry list of nit-picky items is okay, is beyond me!

SO glad they got rid of the craziness on your addendum - what a mess! Makes you wonder who came up with that brilliant idea from the get-go!  LOL

Have a great weekend...

Apr 07, 2017 09:39 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

The inspection process can definitely be a pain in the butt. Asking for all sorts of non-essential "fixes" is not the way to move towards closing, especially when there are backup offers in place. 

Apr 08, 2017 03:35 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Oh so timely post, Anna Banana Kruchten, CRS ... as the "hot market" stresses you mention are going to only grow as we head further in the hotter sales season ...

Gene

Apr 08, 2017 12:38 PM