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Listing Agent & Seller: "Do not forward us a copy of the inspection report!"

By Greg Nino

Real Estate Agent with RE/MAX Compass 0524642

April 27, 2011 11:30 AM

Anytime I get a repair request from a buyers agent I ask that they accompany it with an inspection report. I need to make certain that these requests are being generated from a professional source. And to be on the safe side, I'll sometimes ensure a licensed technician is the one who is ascertaining on whether or not a big ticket item (like an air conditioner) really needs to be replaced.

After all, a home inspector is expected to know a little bit about everything - at most.

Recently, I submitted a repair request on behalf of one of my buyers. I called the listing agent & explained that my buyers wanted a "new roof, new water heater & some circuit breakers replaced." I followed up by letting her know that we'd be forwarding the inspection report.

That's when the other agent raised her voice and said.. "No, don't send me the report, WE don't wanna see it.... chuckle, chuckle.... I'll call you right back."

Ultimately, the seller denied half our request and REFUSED to even see the report.Their behavior led me to believe that they do not want to be blanketed with information that they might have to disclose to the NEXT buyer.

The only thing this tactic did was make me wonder what else was being hidden. Legal? Maybe. To be honest, I could care less. It makes me wonder about foreclosure listings, those that advertise TLC and so forth. Are THEY UPDATING their sellers disclosures after seeing a report?

Was this behavior shrewd and clever or a shady practice?

Comment below.

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Gloria Laughton Allston

COLDWELL BANKER RESIDENTIAL BROKERAGE - Princeton, NJ

Realtor(NJ)/Broker(NY)

Your clients should be happy that you are so alert because it sounds like they need to make sure that they are protected.

Apr 28, 2011 12:18 PM

Anonymous

Jeff Pearl

We must deliver the entire inspection report whether they want to see it or not. If they're not disclosing defects up front, then they're not going to disclose them after seeing the report. Any decent seller would want to see the report. I would have sent a copy to the seller and the agent by certified mail if they told me they didn't want to see it.

Apr 28, 2011 12:25 PM

#31

Robert L. Brown

www.mrbrownsellsgr.com - Grand Rapids, MI

Grand Rapids Real Estate Bellabay Realty, West Mic

Good post. I usually send the summary sheet when requesting repairs.

Apr 28, 2011 12:40 PM

Bryant Tutas

Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL

Selling Florida one home at a time

Greg. I don't mind getting the report but it needs to have an addendum with repair request along with it. BAs ussually just send me the enbire report and say take care of it. WTF? It's not my job to interpret a 15 page report and decide what's important for the buyer.

But I do see your point.

Apr 28, 2011 12:51 PM

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

We don't send the entire report - just the inspection summary. The report is the property of the Buyer. I would classify this as definitely shady practice and real estate agents are bound to disclose anything that materally affects the value of the property. Now, Leslie is right that just because an inspector says something needs a repair doesn't make it so. But if they have been told and it is true and they know it now that it has been pointed out to them, they are being very shady.

Sharon

Apr 28, 2011 01:46 PM

Cheryl Ritchie

RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD

Southern Maryland 301-980-7566

That is really odd. Makes me think something is not okay.

Apr 28, 2011 01:58 PM

Marney Kirk

Cummings & Co. Realtors - Towson, MD

Towson, Maryland Real Estate

Wow, Greg, here in Maryland, our contract even states that the report MUST accompany any request for repairs!!!!!!!!

Apr 28, 2011 02:13 PM

Allen 2222

Austin, TX

I had one of those last year - they *really* didn't want to know the problems with the house. My buyer cancelled, and they sold to someone else for a lot less than if they'd just fixed the problems and been honest about it!!!

Apr 28, 2011 03:09 PM

Tom Branch

RE/MAX Dallas Suburbs - Plano, TX

Broker, CDPE, SFR, ACRE, Plano TX Ambassador

Michael #24,

It's not that easy. Texas inspectors have to flag all kinds of items as being deficient even though they were built to code at the time.

Good examples are GFCIs, AFIs, pans under the hot water heater, hot water heaters in garages being raised up 18 inches, etc. Lots of times, the report states that there may be a problem and to have it inspected by a specialist.

So show me a digital photo of a kitchen built in 1965 without GFCIs and I maintain there is no need to disclose it as a problem.

Tom

Apr 28, 2011 04:07 PM

Melissa Zavala

Broadpoint Properties - Escondido, CA

Broker, Escondido Real Estate, San Diego County

The less they know, the less they have to disclose. But that is not a style that I have seen before.

Apr 28, 2011 05:11 PM

Jennifer Allan-Hagedorn

Sell with Soul - Pensacola Beach, FL

Author of Sell with Soul

I'm with the minority here and agree that as the listing agent, I do not want to see the buyer's inspection report except as it relates to what they're asking for. Why? Because, as several mentioned, the inspector is not a licensed contractor in most cases and my seller did not hire him or her. As we all are painfully aware, there are terrible inspectors out there and just because they say this or that is deficient or even broken doesn't make it so.

I had a listing once where the buyer's inspector found "white mold" in the attic, and noted it on his report. Turns out the "white mold" was simply cement on a piece of decking. It caused quite a ruckus and really drilled it into my head that in many cases, an inspection report is simply one man's (or woman's) opinion.

Apr 28, 2011 07:16 PM

Anonymous

John Nitzken

Greg -

Interesting subject. I'm completely with the minority here - specifically 14, 16, 17 and 40. Not a matter of ethics or failure to disclose. Simply a matter of REPRESENTATION. List Agents represent the Seller. Home Inspectors (unless ordered and paid by Seller) Represent BUYERS. Only those Representing the Seller have any business and authority to advise the Seller. What about all those open house visitors that come to homes and intentionally knock, criticize, condemn and devalue homes with their "critical eyes". You think List Agents should "alarm" the Seller with those comments. Let's let the representations fall where they are supposed to and remember not to allow those representing the interest of Buyers to advise the Sellers. And let's hope that good, strong, honest and ethical agents are properly representing the right side (their side) in every instance. I support the List Agent on this one...for holding his or her ground - and duty.

John Nitzken, Principal Broker John Nitzken REALTORS

Apr 29, 2011 12:04 AM

#41

Scott Fogleman

New Home Team - Richmond, VA

Greg,

I have heard about agents not wanting to see the report. I also feel its good to see the report so you can make sure they are asking for real repairs.

Apr 29, 2011 12:38 AM

Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional

Charles Rutenberg Realty - Clearwater, FL

Palm Harbor, Dunedin, Clearwater, Safety Harbor

I work as a buyer's agent most of the time and always submit the inspection report to substantiate our request for repairs. How else is the seller to know the repairs are really needed?

Foreclosed properties are a totally different scenario since they have no knowledge of the property and you are indeed buying one big SURPRISE! Even after an inspection, you never know what may pop it's ugly head down the road that even the best inspector may have missed.

Apr 29, 2011 12:44 AM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

Now that's a new one on me! I have never seen this before and hope it never happens on one of my transactions.

Apr 29, 2011 03:39 AM

Evelyn Johnston

Friends & Neighbors Real Estate - Elkhart, IN

The People You Know, Like and Trust!

Yes, I have had my sellers update a disclosure because something became known.

Apr 29, 2011 03:58 AM

William James Walton Sr.

WEICHERT, REALTORS® - Briotti Group - Waterbury, CT

Greater Waterbury Real Estate

Greg,

The response of the listing agent is one of the major reasons why sellers should get an inspection report prior to listing the home. In the case of the banks, it would be, imho, money well spent if they actually did hire inspection companies to conduct an inspection of foreclosed properties. They could still sell them "as is" and with the customary refusal to make any repairs as a result of a buyer's inspection.

Apr 29, 2011 05:59 AM

Leslie Ebersole

Swanepoel T3 Group - Saint Charles, IL

I help brokers build businesses they love.

Thanks #38. (When did we stop using people's names here....sheesh)

Michael #24: A photo may or may not provide proof of a material defect. More important is the role of an inspection as defined by the purchase agreement. In Illinois, the contract clearly and specifically states that the fact than an item is near the end of it's useful life is not a material defect. We have very specific guidelines about what defines material defect and how it's discovery plays a role in canceling or continuing with the contract.

Tom Branch (#38) and I have both written recently about the role of home inspections in purchase negotiations. I have learned an awful lot about Texas license law and at least a few people have been nice enough to say that they learned something about Illinois license law from my posts.

Apr 29, 2011 04:26 PM

Charita Cadenhead

eXp Realty - Birmingham, AL

Serving Jefferson and Shelby Counties (Alabama)

I would have sent the inspection report anyway. Whether they chose or read it or not was up to them. Was this an AS-IS sale? Were the sellers just willing to fix whatever the buyers asked without proof? Not wanting to disclose is the only reason the agent would refuse a copy of a report. This is kind of crazy to me and even if they did not review the report, wouldn't they have to disclose if you informed them that say "inspection reveal a large hole in roof?"

May 02, 2011 07:56 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

People just don't think. I'll tell you who I don't wanna be. I don't wanna be that seller's agent sitting in court with the new buyer's lawyer grilling me, "And . . . so, Mz. Weintraub, you KNEW of an existing home inspection report and you had knowledge there were defects and you did not disclose them to the buyer nor did you try to get a copy of the home inspection report for the buyer, and in fact, you asked the former buyer's agent to not even send it to you, is that RIGHT, Mz Weintraub?"

May 02, 2011 08:29 AM

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