This week we had something happen at 2ShortSaleGuys.com that we don't see often. We list alot of short sales and in listing those homes we list them "as-is". We allow 10 business days for the buyer to get an inspection, so that they know exactly what they are getting in to.
Last week we had a call come in from our website. Our Buyer's Agent called the lead back, qualified the lead and went and showed the property. When he showed the property, the buyers loved the property and spent about 1 1/2 at the property before moving forward with an offer. Our Buyer's Agent was very through, making sure the buyer knew everything they needed to know to make an informed decision.
The buyer was told that he should get an inspection to make sure they knew everything that could be wrong with the property so that when they closed on the transaction. The Buyer's Agent gave the buyer two inspectors that we use frequently. The buyer chose another agent to inspect the property.
The home inspector came to the property. He did not verify with the Buyer's Agent that the utilities were on. In most cases with our homes, the homeowners have already moved and the homeowner can not afford to keep utilities on. The buyer's sign an expectations sheet to clearly outline that if the utilities aren't on then it is the buyer's responsibility to turn them on. When Chris arrived at the property he immediately told the buyer that it was the seller's responsibility that the utilities be on. That was mistake number one.
This property was built in 1996, the siding on the home is hardi-plank siding. The inspector told the buyer that the siding "doesn't look like the typical hardi-plank and I suspect that the siding is LP (Louisana Pacific) siding. This is the siding that was in the case action lawsuit in the early 1990's. He told the buyer that all the siding on the home needed to be replaced. He told the client that he needed about $10,000 to replace the siding.
There was several other things in the report that were just absolutely ridiculous, such as, all smoke detectors should immediately be replaced due to failure to work. News Flash, CHRIS, the power is off and has been for about 6 months, the backup batteries in the detectors probably needs to be replaced. How about accurately report your findings and say, upon power being turned on, replace batteries and check to ensure the smoke alarms are working properly.
I have been in the real estate business for 7 years. I have never seen anything like this. It was reported by the buyer that the home inspector told him "this house has way too many small things wrong with it and you aren't getting your money's worth in this house". I am sorry, I didn't realize you were an appraiser as well as a home inspector. In fact, it is very clear that you obviously have a hard time inspecting the home let alone telling the client the home isn't worth the money he is paying.
The buyer has now came back to the buyer's agent and decided to back out of the transaction based on the home inspector. We have received a copy of the home inspection. There are alot of little items that you can clearly see the inspector made a mountain out of a mole hill.
I understand that the inspector's job is to inspect the property, note all the items they see that affect the home. However, not only did the inspector charge the buyer $450, he also told the buyer that he would owe him another $350 because the utilities were not on. He was then asked about the $350 by the buyer's agent because we felt that was a little steep. The inspector then replied, I get paid $199 per hour, I should be charging more.
This message is to all the home inspectors out there, please remember that we as Realtors like you and want you to be in business, however, remember if you don't know something, say I don't know or don't report on it. You can even say, I will research this and let you know, but don't make assumptions and put them in writing. It just makes you look bad, creates a bad image of you and your business and puts you on the black list for agents so that they don't want to work with you.
I have intentionally left the inspectors name out, as much as I wanted to blast the inspector for making us loss this transaction, I felt I would take the high road and let it be. This home is a great home and will be bought by someone who will get a fantastic deal. We will make our commission and close the transaction, the home owner will prevent foreclosure but it won't be due to this home inspector.
When you are buying a home, please be careful to chose a home inspector. Get recommendations, get references from other homeowners that have done business with this inspector. As I look at the internet, the inspector that we are referring to had several bad reviews and this could have totally be avoided.
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