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Home Inspection Fail? What to Do Next.

By
Services for Real Estate Pros with Think Glink Media

A home inspection can help your clients make sure the house they want gets a clean bill of health before closing. There are many things to look for when getting a home inspection, which is why having a checklist like this one is really important.

No matter what kind of house your client is looking at, a good home inspector should always check the same basic features. A home inspector can save your clients a lot of money by catching any big problems, but you should make sure they’re prepared for any bad news about their dream home.

So, what happens if the home inspection goes bad?

It’s simple. Your client can do two things: leave the home behind or renegotiate the price to cover the cost of fixing the issues.

If your client has fallen in love with a property and the home inspector finds a major problem, don’t be afraid to warn them against buying it. For example, if the home has a cracked foundation or structure, tell your clients that no matter how much they love the home, it probably isn’t worth the amount of money it would take to fix it.

Homebuyers should avoid buying a home that:

  • Sits on a fault line
  • Sits in a floodplain
  • Has a severely cracked foundation
  • Has a contaminated water supply

Nearly everything else is fixable, but at a cost. Ask your clients: Is fixing up this house the smartest financial move you can make?

Make sure your clients know the risks and possible expenses of any fixer-upper. In the end a home inspection helps both you and the buyer, so make sure your clients get one.

Rainers: How do you tell clients bad news about home inspections? Do they usually buy it anyway, or start looking for something else?

 

 

 

Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blog and CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.

Comments (6)

Brenda Mayette
Miranda Real Estate Group, Inc. - Glenville, NY
Getting results w/ knowledge & know-how!

Great topic, Ilyce! How do I break the news to a buyer? Well... I make sure they're present at the home inspection so they can learn all about the "ins & outs" of their intended purchase. I am blessed to work with a few different home inspectors who are great informants and not "alarmnists".  If the report isn't good, we take a deep breath and line up some further assessments by specialists so the issue can best be evaluated and responded to.  Most issues can be rectified and I have found that most buyers do move forward after renegotiating with the seller.  Meanwhile, this all reinforces the need for thorough showings...  Major defects however can certainly be a surprise!

Nov 22, 2013 04:29 AM
John & Shannon Cox
CALL REALTY - Mesa, AZ
THE COX TEAM

My very first real estate deal ever, my client hired an "alarmist" home inspector. He made such a big deal about some cracked roof tiles that my clients cancelled the deal. After being in the business for so many years, I can help clients understand what issues are deal breakers and what issues are an easy fix.

Nov 22, 2013 07:31 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Good advice, Ilyce. 

    Buyers should be looking for major structural issues, illegal wiring, bad foundation, and other items that will be cost-prohibitive or impossible to repair.  I grow weary of Inspectors pointing out a stove element that isn't heating properly, or dents in the wall behind the door because there isn't a correct doorstop.  Show us the stuff that costs lots of $$$ to repair, please!

Nov 23, 2013 02:23 AM
Ilyce Glink
Think Glink Media - Chicago, IL
Best-selling author, award-winning TV/radio host.

Thanks for your comments. Although inspectors should point out issues that are wrong with the house, it's the major ones that can really make or break the deal. 

Nov 26, 2013 07:54 AM
Joshua Frederick
Home Inspector for ASPEC Residential Services, LLC - Defiance, OH
Home Inspector in Defiance & all of Northwest Ohio

Keep in mind, if it's a bunch of the "little" things, that can all add up quickly.

Nov 30, 2013 08:57 PM
Ilyce Glink
Think Glink Media - Chicago, IL
Best-selling author, award-winning TV/radio host.

Joshua, thanks for your comment. You're right, finding a bunch of "little" things wrong can also impact a client's decision to buy.

Dec 02, 2013 11:56 PM