Who is to blame when the Home Inspection FAILS?

I have a buyer interested in a FSBO now.  If it ever gets off the ground, it is going to be painful.

As is usually the case, when the uninformed try to cut corners and save money, it ends up costing them much, much more in terms of money and lost sleep.

Both have issues that could have blown up into a big lawsuit in the future.

This post also outlines why it is important for sellers to consider professional representation.  So many times FSBOs who are hoping to save on commission, overlook important things that may be revealed in a home inspection.  Or, they may have priced their home because of its known condition, only to have a buyer hoping to further discount price because of it.  A represented seller, would have professional help navigating situations like this one, and likely not be taken advantage of.

Hi Scott, the old adage you get what you pay for is appropiate for those in the situation you described. Why buyers who have no idea of what they're doing try to do a complicated transation on their own boggles the mind. Same goes for sellers.  Ask a professional folks.

Hi Scott, 

Just had to cancel a contract yesterday because of 4 pages of red items. The big one was a termite ridden large deck. The seller would not budge. Adios! ...as we say in the southwest! 

This is a good story to share with home buyers and home sellers who are not using an agent.

Hi Scott - With as much effort and worry that we put into getting through inspections, I can't imagine a buyer and seller doing a good job with that part of the process without experience or help.

Hi Scott, it makes no sense for buyers and/or sellers not to work with an agent. Most find out the hard way. 

Hi Scott... at the end of the day, I rarely worry a lot about inspections. Unless it's structural there's little that can't be fixed or negotiated. If I need to be worried up front, it's something I discuss up front with sellers or warn buyers about.

Good morning Scott.

A lesson well learned.  I wonder now what the buyer will do? 

Larry accompanies all our buyers to the home inspection so that any issues can be discussed before signing the contract.

Having a home inspection is the right of the buyer in most contracts. When the results are in they can then choose to move forward, negotiate or cancel the sale based on the conditions of the contract.

I am not sure there is such as thing on used home sell failing the inspection. Any home brand new or old has code, structure, workmanship concerns.  As seller he should try to reduce the exposure with corrective actions to advise buyers he has corrected some of these concerns. I have never a deal in 13 years where sellers have compensated or repaired as a result of escalation. 100% is as is. You inspect and figure out what needs to be done or fixed. You can walk away (not often) or other buyers are more willing to have the home.

Last sell all offers waived the inspection since seller made an effort to repair what can be done and was open to share the results.

They both need good agents. That is why we are here. We are professionals. This is what we do. This issue could have been more easily resolved like that. Thanks for sharing.