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The Previous Buyer is Allowing you their Inspection Report - Do you Still Have an Inspection?

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

 

There are times the listing agent does not know why a buyer terminates a contract, and with our Colorado contracts, no explanation is needed.   I know I had a buyer terminate mid-March after the stock market took a dive, and they did not want me to share that information.   As a Buyer's Agent, you cannot share if that is their request.

 

 

We are seeing many properties come back on the market in 7-14 days, and you have to think it has everything to do with the inspection items.   The listing agent and the Seller are required to disclose if they are aware of any issues with the home.

 

If a home comes back on the market, and the listing agent shares the previous inspection report, should you have confidence in this report?    What if "Uncle Bob" did the inspection?   What if an inspector has a certification - ASHI or InterNACHI?    I know I would feel better if they have been certified, as in Colorado our Inspectors are not required to be licensed, so anyone can do an inspection.

 

It is nice to "save money", but will you?   Be sure to read all the documentation, ask for receipts for repairs done, and know what you can live with, and what you cannot!

 

 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments(65)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Abby Stiller luckily, the inspector who did the inspection with the previous buyer is InterNachi, and the buyer is comfortable with him.

Sep 06, 2020 09:37 AM
Caroline Gerardo
Licensed in 20 states - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

I would ask for a copy of it and still order an inspection, unless you know and trust the inspector then call for updates.

Sep 06, 2020 10:38 AM
Sham Reddy CRS
Howard Hanna RE Services, Dayton, OH - Dayton, OH
CRS

I have done that before, however the buyers needs to feel comfortable with it and weigh it agianst the money they save. I definitely give it a shot especially if the inspector is reputable

Sep 06, 2020 11:17 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Caroline, I did ask the listing agent if there had been any changes, but the seller moved out.  They were supposed to close, and buyer backed out 14 hours prior to closing.

Sep 06, 2020 11:19 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sham, that is how the buyer feels.    

Sep 06, 2020 11:19 AM
Tom Bailey
Margaret Rudd & Associates Inc. - Oak Island, NC

It depends. I generally want my clients to get their own. That said if it's not too old, and done by one of the inspectors I use maybe. In that case I may suggest we talk to the inspector first! I don't do that very often, but I have done it!

Sep 07, 2020 09:08 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Tom Bailey cannot remember if a buyer has ever done this, but ultimately, it is their decision.

Sep 07, 2020 09:32 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

As the LA we do not give out any inspection reports that may have done on the property to any buyers. They must get their own inspector. As a BA I will strongly advise the buyer to hire their own inspector (s) and not take the word of the previous inspector. If they chose to not do so they will sign off in writing that they are doing so and will not hold the BA or Broker responsible should other issues pop up at anytime in the future. There have been huge liablity issues about 15 years or so ago with agents freely handling out the previous report.  That's when that practice came to an end in my area. For those that still do that, I highly suggest stop doing it.

Sep 09, 2020 10:08 AM
Rose King
David Tracy Real Estate - Friendswood, TX
Friendswood / Pearland / Houston Bay Area

I think it depends on the circumstances. Usually, I would recommend the buyer get their own inspection. But there have been times when my buyer wanted to just use the inspection provided by the seller, and I was okay with it. If there is not a lot wrong with the house, if it is newer, or if the buyer just wants to take it as is, then I don't see anything wrong with using the previous buyer's report.

Sep 09, 2020 09:15 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

I advised my Buyer with all the pros and cons, and ultimately, was his decision.

Sep 10, 2020 07:33 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Rose King the home is newer, and after reading through the report, he did decide to use it versus having a full inspection.  Still did a couple of separate inspections for him.   It worked.

Sep 10, 2020 07:34 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

If an inspection report was done, my buyer (and me!) will want to see it.  I've seen so many reports over the years...some inspections seem very negative, some don't seem very specific, many have pages and pages of boilerplate copy.  Best to get your own inspection!

Sep 10, 2020 09:25 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

A timely post for sure.   I just had this happen this week and I am working with the buyer.  The inspector I would normally use and that I trust had already inspected the home a few weeks ago for a buyer who had to cancel their deal. 

That deal fell through because unfortunately for that buyer they wanted to put a daycare in the home and that is not allowed in this subdivision without a lot of red tape and the buyer cut their losses and moved on (not my buyer...the previous buyer). Would have been a fantastic place for an in-home daycare.

Anyway...my buyers elected to use the inspection report.  With it we got the well/water report; the radon report; and the survey. The home has a new hvac system, new roof, new siding, and new radon system.

My buyers are from Denver although the husband grew up in my area.

While I agree with many of the valid points in the comments...I gave the buyers their options and cost and through e-mails and text and have a paper trail that the decision was theirs.

I usually try to keep my previous career as a carpenter many, many decades ago out of my real estate career...and the fact that I replaced my own water heater and plumbing fixtures, etc...but I will admit that some of that old carpenter in me kicked in when they said they would consider the previous report that was only a few weeks old. I looked at the house from the eyes of an inspector/finish carpenter.   I am comfortable with their decision.

Sep 11, 2020 06:27 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Mary, and some inspectors are Uncle Bob, but this one was a certified inspector, and my buyer was comfortable in using the previous report.

Sep 11, 2020 06:48 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Mike, that is interesting you just had this happen too!   I cannot remember having this happen before to another buyer.   If the inspector is credible, home is well-maintained, it is up to the buyer if they use it or not.

Sep 11, 2020 06:49 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Since I let my license go before inspections became common in our area, I don't have experience to apply here. However, after reading all the comments, I'd have to answer with "it depends."

There are many factors to consider.

May 28, 2021 09:37 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Marte, I agree, and should be it depends on the circumstances.

May 28, 2021 09:42 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Joan... can't say I'm seeing a lot of back on markets due to inspections... I see more them just a few days after contract was signed... I attribute that to buyer's remorse. As for sharing inspection reports, for me that's an absolute no-no. The report is the intellectual property of the person who paid for it and we need their written approval to release it to a seller even when not terminating a contract. Sellers have no business releasing another buyer's report. And buyers should have their own inspection. Fortunately, here in NC and SC our inspectors are licensed and insured and tightly regulated.

May 29, 2021 09:47 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina Hollander, Broker surprised you found this post!   This particular instance, was the 3rd home this couple had written on, was going to be the 3rd inspection.   We were told the previous buyer would release it for 1/2 the money he paid for it, so this buyer did, but I did advise them not to.   I did not know the inspector.

May 29, 2021 10:02 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

great advice - if you don't know the iinspector or the inspection company you have to be careful  very careful

Jul 07, 2021 07:03 AM