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FSBO's Suck

By Juan Jimenez

Home Inspector with A House on a Rock Home Inspections LLC NACHI11122403

September 10, 2013 12:57 AM

I think I get stuck with every FSBO inspection in Richmond, VA. Sometimes, I will have multiple inspections a week for FSBO's. Generally, if the home is FSBO, the buyer also has no representation. From my inspector perspective, both parties are lost in the sauce and it sucks. It's always a nightmare and I am considering charging more for home inspections on FSBO's.

When I inspect for a buyer who is purchasing a FSBO, the buyer always at least a million questions that I don't have an answer to. They ask basic questions like "will the seller fix this?" or "its listed 'as is', does that mean we can't ask for repairs?" Although I have heard realtors answer these questions for their clients countless times, I don't feel comfortable answering them myself. I am not a realtor. Then, there are the endless phone calls that ensue. The buyer has no idea how to handle the inspection response.

Somehow, I become the man expected to have answers except I don't have any answers!

The sellers aren't any better. They call me asking why the buyer hasn't sent them the report, or what I find during my inspecton. My client paid for the report and its up to them to share with the seller what is in the report. Sometimes they want to know why the buyer backed out. I have no idea. I don't even know why they are asking me. I don't understand why they aren't communicating each other. How did I become the middle man? I once even had a seller threaten me with his lawyer. The poor sap didn't know that he and his lawyer had no standing to force me to do anything.

It is always a mess! A lot of them simply fall apart.

Real estate agents are there for a reason. They have the training, and experience to answer your questions, market your home, and communicate through hurdles. They know what to do before, during, and after the inspection. If they don't have an answer, they have a full army of support behind them. There is absolutely zero logic in not getting representation when buying a home, and faulty logic when you are trying to sell your own home.

From my standpoint as an inspector: Leave it to the professionals!

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Juan Jimenez

A House on a Rock Home Inspections LLC - Richmond, VA

The Richmond Home Inspector

Sorry for leaving you guys hanging. I had some inspections and reports to do.

Jeanne I am glad to know you don't recommend uncle bob with a twelve pack. I did receive a twelve pack as a tip once though.

Kat I am actually surprised that I didn't think of that. I think its a testament to where our industry is at that so many unrepresented buyers get inspections.

Marie the angle which we are considering approaching the price increase is at is a little different. We aren't actually going to charge more FSBO inspections, we are considering giving a discount to everyone who has an agent. We are still brainstorming our options since we deal with so many of these.

Phil buyers definitely expect us to be a Jack of all trades in more than the way described in this blog post.

Jason I don't know much about MLS or trulia or zillow but I agree that the only information that should be relied on is from a professional.

Erik I am glad to defend your profession. I figured that the same post coming from an agent doesn't mean as much. As true as it may be, it would be coming from a biased party. Its good for everyone to hear it from the inspector point of view.

Francine I absolutely despise FSBOS. We are on the same team.

Maria I wish this post was public too. I didn't know it wasn't. I am still new at this.

J. Phillip. I am officialy stealing your phrase!!

Thanks for the support Tom!

Sep 10, 2013 01:20 PM

Joni Bailey

101 Main St. Realty - Huntsville, TX

Your Huntsville / Lake Livingston Area REALTOR®

It's a shame this is a member's only post. It would have been reblogged a zillion times! LOVED it!

Sep 10, 2013 02:04 PM

Juan Jimenez

A House on a Rock Home Inspections LLC - Richmond, VA

The Richmond Home Inspector

Its public now. Reblog to your hearts content! :)

Sep 10, 2013 02:13 PM

Carla Muss-Jacobs, RETIRED

RETIRED / State License is Inactive - Portland, OR

Great post, too bad not public I would have liked to re-blog this.

Yes, the "Oh my gosh, a nail pop . . ." and they cancel the deal. Even buyers represented do this when they have an alarmist real estate agent and/or inspector.

Good post!

Sep 10, 2013 02:30 PM

Troy Huerta

SRE Technologies - La Jolla, CA

Changing the way Home Buyers BUY!

Good post I enjoyed it!

Sep 10, 2013 03:36 PM

Inna Ivchenko

Barcode Properties - Encino, CA

Realtor® • GRI • HAFA • PSC • Short Sale • Probate

Great blog, Juan. Congratulations on the future!

I've seen a lot of re-posting of it:)

Yep, the realtors there for a reason!

Sep 10, 2013 04:35 PM

Andrew Mooers | 207.532.6573

MOOERS REALTY - Houlton, ME

Northern Maine Real Estate-Aroostook County Broker

You get the heat for the missing player that navigates, smooths, finds the best way to the closing without all the ruffled feathers. The real estate agent, broker, REALTOR.

Sep 10, 2013 08:49 PM

Marie Story

Coldwell Banker - Pinecrest (Miami) - Pinecrest, FL

Broker Associate, Pinecrest (Miami) Specialist

Juan, giving your clients that are working with an agent a discount...I like that idea even better!

Sep 10, 2013 11:18 PM

Juan Jimenez

A House on a Rock Home Inspections LLC - Richmond, VA

The Richmond Home Inspector

Carla did you have deal fall apart over a nail pop?

Thanks Troy and Inna!

Exactly Andrew. Too much heat for me!

Thanks Marie. We are still considering it, but we think it benefits everyone. It might give us a chance to generate some referrals some of the agents that refer us the most.

Sep 10, 2013 11:23 PM

Kelly Caldwell

At Home to Guelph Realty, Inc. - Guelph, ON

ABR, AGA

Very interesting perspective. Without an agent on site to field questions related to buying, selling, resale, negotiating, etc., it sure puts you in an awkward situation.

Charging more makes sense, given that you have seen the scenario play out time and time again and can reasonably predict that it's going to be more time-consuming and/or more difficult to handle the inspection.

Good post!

Sep 10, 2013 11:56 PM

Richard Alan Naggar

people first...then business Ran Right Realty - Riverside, CA

agent & author

I remember trying to help a friend diagnose a med issue and every-time we explored it, she had all the symptoms..At some point, you need experience and a pro to make it all make sense...In Real Estate....Where hundreds of thousands of dollar are involved HIRE-UP!

Sep 11, 2013 12:16 AM

Helen and Larry Prier- Re-Max Gateway - Residential Real Estate

RE-MAX Gateway- Residential Real Estate Sales - Anacortes, WA

Anacortes & surrounding Skagit & Island Counties

Juan, Thanks for the insight. I think you should consider charging more if this is what you have to go through.

Sep 11, 2013 01:47 AM

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

Juan, thanks for promoting real estate agents - yes, we are there for a reason and like us, you also feel, FSBO...suck!

Sep 11, 2013 12:26 PM

Donald Hester

NCW Home Inspections, LLC - Wenatchee, WA

NCW Home Inspections, LLC

Juan, I have done several FSBO's also. You are right you do get questions that are out of the clients that really best handled by a Realtor.

Sep 11, 2013 01:11 PM

Tracy Oliva

West USA Realty - Arizona - Fountain Hills, AZ

The Oliva Team Arizona Agents

This is some good Info for all in the business, keep up the good work and good luck with your business, E

Sep 12, 2013 12:30 AM

Juan Jimenez

A House on a Rock Home Inspections LLC - Richmond, VA

The Richmond Home Inspector

Kelly, it absoslutely does put me an awkward situation. I am guessing it would be the same if a client asked you about the roof :)

Richie you bring up a good point. Hundres of thousands of dollars are at stake. Why wouldn't a consumer want professional guidance. I will never understand it.

Sep 12, 2013 03:23 AM

Frank Castaldini

Compass - San Francisco, CA

Realtor - Homes for Sale in San Francisco

It's often been noted that FSBO sales don't get as much for a seller as if it's listed with a good local agent. I've never considered that the experience for the inspector would be so challenged. Most FSBO never get sold. A lot of time is wasted and the outcome is less than optimal. You've pointed out that both buyer and seller, without professional representation and guidance, are potentially making a big mistake. Thanks for the post.

Sep 12, 2013 11:41 PM

Juan Jimenez

A House on a Rock Home Inspections LLC - Richmond, VA

The Richmond Home Inspector

I completely agree Frank. I think for the most part, even when a seller does sell a home on their home, it probably took longer, and they may not have gotten the best price for it. Even if they get a fair market price for it, the time it took costs money. I am sure a few anomalies occur where it works out completely beneficial, but I wouldn't gamble on being the anamoly.

Sep 13, 2013 12:39 AM

Al Remetch

Palmdale, CA

Maybe I will think twice about selling my own home.

Sep 13, 2013 02:44 AM

Lisa Friedman

Great American Dream Realty - Manchester Center, VT

37 Years of Real Estate Experience!

Juan, this is a very good post. I never really thought of this from the inspector's perspective. It is definitely an enlightening and eye opening view. I think I would charge more too!

Oct 21, 2013 08:46 AM