Sacramento Sellers Should Not Pay for Most Inspections

By
Real Estate Agent with RE/MAX Gold DRE #00697006

Rules change so much that many agents find it difficult to stay on top of changes. Even our RPA is updated every few years. Things that were true decades ago are not true now. And generally the agents I deal with at larger brokerages are pretty much on the ball with the changes because their brokerages keep them informed. They discuss changes at office meetings, send out announcements via email and offer training. Sometimes I get identical reminders from my brokerage in different formats.

When I run across an agent who doesn't know something, it's generally the agent working at a smaller mom-and-pop brokerage. Which just means our association should do a better job. Like last month, an agent insisted that her buyer did not have to pay to fix a loan condition item. I had to quote the paragraph in the RPA that says loan conditions are negotiable and direct her attention to the AS IS clause, including the additional verbiage we had inserted concerning lack of repairs, before she backed off and got the item fixed.

Then there are the listing agents who feel their sellers should hire a bunch of inspectors to prepare reports without realizing the agents must send those reports to the buyers. They aren't doing their sellers any favors; in fact, if the reports are not required, the agents are probably harming their sellers. You can read more about all of this in my personal blog today at this link: Why Sacramento Sellers Inspections Are Unnecessary Today.

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elizabeth weintraub

 

 

Weintraub and Wallace Realtors

 

 

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Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

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California Sacramento County Sacramento
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Tags:
sacramento home sellers
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Rainmaker
3,301,144
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Good morning, Elizabeth -- I understand your position but will respectfully disagree.   While our state has an "as is" purchase agreement, I believe pre-market inspections serve a purpose in many situations.

In many segments of our market, there are still multiple offers and sales occurring over list price with offers reviewed on a pre-determined or not-before date.   Having a prospective buyer informed prior to submitting an offer(acknowledgment of any reports/disclosures) can eliminate those buyers and their agents who aren't fully engaged.   

As we know so much about real estate is at the local level.  Of course, whatever works best for our clients in helping them achieve their goals should always be the primary objective.  

Jan 23, 2017 09:15 AM #1
Rainmaker
686,609
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

When there is an existing home inspection, it freaks the buyers out if the sellers haven't fixed those items, I've found. And when a home has fallen out of escrow and now the next buyer sees all the reports, that next offer is lower for sure.

Jan 23, 2017 09:23 AM #2
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Michael Jacobs Well, fortunately for me, I've never had a seller disagree. They are even happier with me when I put a stop to negotiations for repairs and close without repairing stuff, making a credit or lowering the sales price.

Granted, it's a lot more work for the agent, but I will move heaven and earth for my clients.

Jan 23, 2017 11:25 AM #3
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Hella Mitschke Rothwell There is no law that says a seller must fix up their home to the buyer's liking. There might be some buyers who believe so, but those are not the buyers we tend to close escrow with in Sacramento. Right now we have multiple offers and limited inventory, so sellers can write the rules.

Jan 23, 2017 11:26 AM #4
Ambassador
3,084,253
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

We are certainly in agreement in not ordering inspections of a home you just listed.  No need.  See what inspections the buyer wants and let them do their due diligence.

Jan 23, 2017 12:40 PM #5
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

Chris Ann Cleland Yes sirree. Not every buyer requests a pest report, either. Closing a transaction tomorrow for a seller in which the buyer waived the pest.

Jan 23, 2017 03:08 PM #6
Rainmaker
2,515,786
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You make an excellent point about having the buyer obtain any inspections they deem necessary.  I sold a 5 acre parcel out in Wilton a couple decades ago.  The buyer had just about every inspection performed you can imagine - Home Inspection, Pest, Roof, Septic System and the Well.  That winter (1986), the levee broke at Twin Cities Road and flooded the ranchette.  Mud went into the swimming pool, and the Septic system failed, even though it had been pumped prior to close of escrow.  The buyer took my seller to court.  They claimed the seller didn't disclose the property would flood, and they also took issue with the septic.  In court, we mentioned that the seller had never experienced flooding in the 27 years they had lived there, and couldn't predict a break in the levee.  We also mentioned all the inspections that had been performed on the property, who had been the BUYER'S CHOICE.  I can only imagine what may have happened in regard to the septic, had it been the Seller's choice.

Jan 24, 2017 07:46 PM #7
Rainmaker
2,189,557
Elizabeth Weintraub Sacramento Realtor Top 1%
RE/MAX Gold - Sacramento, CA
Put 40 years of experience to work for you

I imagine these sellers sued you and your brokerage, too, Myrl Jeffcoat claiming you should have disclosed the property would flood. But all of this was prior to the Natural Hazard Disclosure law. I looked it up just to make sure, and yup, that went became law in 1998.

Buyers can sue over anything. This is California! That's why I tell sellers: if you know it, disclose it, but don't go looking for more trouble.

I once had a seller in Midtown so freaked out over disclosing, he wrote a 3-page letter of all the things that could EVER go wrong, including a foundation collapse. Of course, I had to give it to the buyer, regardless.

Jan 25, 2017 07:24 AM #8
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