Special offer

The Deal Killer Is Coming, Is He Really a Deal Killer?

By
Managing Real Estate Broker with Platinum Properties- (931)771-9070 TN Broker: 208698

The Home Inspector Cometh

 

My love hate relationship with home inspectorsSome agents feel like the home inspector is coming to kill the deal. I don't feel that is the objective of the home inspector, or most home inspectors anyway. To be fair, most do a great job and should not be labeled a Deal Killer. If they do the job properly, the home will stand on its own merits.

We are selling a condo we have owned for many years in another state. Our agent advised us to sell it "As-Is' with the right to a home inspection. A contract came in fast with the home inspection clause. I advise every buyer to have a home inspection even those buying new homes. My property should be no different, right?

Now that I am the seller and my fate lies in the hands of the home inspector I am asking myself will he be fair? Will he present only the facts without creating alarm and panic in the hearts of the buyers? Will he make outlandish statements that cause the buyers to second guess themselves and what they have agreed to pay? Will he throw up roadblocks and make the deal rocky? Will he be a deal killer without even knowing it?

I deal with home inspectors on my own turf every week and know which ones give me concern, create unnecessary problems and which ones do their job very responsibly. There are some that just have to embellish the report by making statements and predictions about the likihood that systems will fail in the next year or too. It makes no difference if these systems have been maintained, serviced regularly and are running in tip-top condition. I sure hope we don't get a prognosticator like that on our condo.

A home inspector should present the facts without embellishments as to whether they like the property or not. They shouldn't render an opinion as to the floor plan or the neighborhood or other properties in the area and how the home compares as to quality. They should state whether they like the builder or not. That is not in the scope of the work. The delivery of the findings can kill the deal.

To be clear, some deals don't need to go through as the properties have serious issues that the buyers were not aware existed. A well-written report can state what these issues are and let the buyers with help from their agent make an educated decision whether the deal should move forward or not.

When an inspector presents himself an expert in all specialized fields of construction it makes the buyers and sellers question how can that be. Buyers put a lot of faith in the home inspection report and I have seen them argue with codes inspectors and licensed contractors that the home inspector is right and everyone else is wrong.  

The home inspector doesn't need to present himself as a know-it-all. and he shouldn't manipulate words to create panic to make himself look good. If he does, he earns the title of Deal Killer and will earn a reputation as such. The word will get out and we agents know which ones they are.  

Home inspectors should be objective and not biased one way or another. I have been assured by our agent that the inspector is fair and does good work. I can deal with that. Time will tell.

 

Posted by

 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

When you need Real Estate services in Clarksville TN

                  it would be my pleasure to assist you!                             

Debbie Reynolds
"The Real Debbie Reynolds"

Check out all Clarksville TN Real Estate on My Website

                   
                   
931-771-9070 Office | 931-320-6730 Cell

Clarksville TN Homes 

                 

 Google Plus       Follow me on YouTube       

  

Fred Sweezer Sr. CMI, LLC.
Hud Certified 203K Consultant - Long Beach, CA
HUD 203k Consultant

Thanks for your post! Keeping up with continuous required education is the key for customer satifaction as you have clearly presented in your post is what I do. Most buyers have fell in love with the property if they have put a offer in and the offer have been excepted even if the roof is not all that good, or the property needs plumbing....etc., in which case the buyer have done most of the inspection reporting at that point so a narrative of the issues is all that is needed because they need some third party expert eyes to make sure nothing else major is at issue. 

Aug 09, 2018 02:15 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

We home inspectors try to perform a good service!  I observe and report.  Nothing is slanted to reveal what does not exist.  Things are what they are!  The house is the house!

See my post today about a deal my home inspection killed - so to speak.  Later the seller did finally sell the house, but to another buyer.

Aug 09, 2018 02:35 AM
Carol Tunis
Florida Homes Realty & Mortgage - Saint Augustine, FL
Carol Tunis...a "HouseSold" name!

There’s a local inspector that most agents cringe when buyers select him.  Not only does he embellish to make himself important, he suggests how the buyer should approach the seller and what they should ask for.  Their job is to inspect and make a notation of findings.  This last time, he told the buyers agent and seller that the seller needed to purchase a home warranty for the 6 year old a/c unit.  I called him and told him that the person I spoke with at ASHI, who was head of the ethics committee, stated that that renegotiating our contracts was a violation.  He told where to go before he hung up on me!  I hope he got the message!!

Aug 09, 2018 04:44 AM
Anna "Banana" Kruchten

Wow Carol Tunis that inspector is way over the line....geez.

Aug 09, 2018 10:07 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Debbie.  I hope this inspector will report the facts fairly and your condo sale proceeds without any issues.

Aug 09, 2018 04:51 AM
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

Debbie... I always tell the buyer a home inspection is to establish if there is something so wrong that they can't move forward. It is not a tool to get a better deal.

Aug 09, 2018 05:34 AM
Anonymous
Bill Fiore

One problem with Home Inspection is that the costs are rising, some are franchises that bought a fancy software package to generate slick looking boiler plate for their reports and have to strain at every gnat they see to justify the cost of their inspection and impress the client with their thoroughness. Sadly, buyers will miss at on a nice property if they can’t see through the fluff. Understandably, we live in a very litigious time and inspectors are often the target of choice for a law suite along with the realtor when a problem is found that was not listed in an inspection report. I don’t believe inspectors deliberately try to kill deals but what is their role? Why does a buyer hire them. Does the buyer need all those “advisories” on future maintenance and correction for non-existing problems. Maybe buyers should fill out a questionnaire for the inspector regarding what their real concerns regarding buying the property might be and the inspector proceeds with that information and investigates. Not unlike the risk tolerance questionnaire you fill out for a wealth advisor creating an investment portfolio for the client.

Aug 09, 2018 05:37 AM
#36
Don Wede
Heartland Funding Inc. - Spring Valley, IL
A company that buys houses in Illinois

To me a double edge sword.  If I am selling I hate it.  If I am buying I love it.

www.HeartladBuysHouses.com

Aug 09, 2018 07:06 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired New Hampshire Home Stager

I've had some bad experiences with inspectors....but I still wouldn't buy without having one check the place out. You have to take what they say and determine for yourself how to act on it. Sometimes it's good news and sometimes it's not.

Aug 09, 2018 07:07 AM
Anonymous
Deb Dameron

If you’ve had a bad experience with a home inspector with regards to over exaggerating the problems with a home, do you have to modify the sellers Real property disclosure?

Aug 09, 2018 08:20 AM
#39
Kathy Akers, ABR CRB CRS GRI
Fathom Realty NC LLC - Rocky Mount, NC
Your Trusted Real Estate Advisor

Debbie, well said. There are some good home inspectors out there that just present the facts and then there are those that just go beyond the scope of their practice. Good luck on the sale.

Aug 09, 2018 08:26 AM
Frank Carr
FIRST CHOICE HOME INSPECTIONS - Deltona, FL

Embellishment - a detail, especially one that is not true, added to a statement or story to make it more interesting or entertaining.

As a home inspector, embellishments have no place in a home inspection report.  As to the scope, it is defined by the licensing state and by the home inspection association the inspector belongs to.  Home inspectors have to walk a tightrope of liability issues and need to be as thorough and detailed as possible when writing the report.  Home inspectors are required to under go, in Florida, 120 hours training before they can inspect a single home.  To maintain their licensing they have annual training requirement and may attend additional classes to stay current.  Specialty training requires additional hours of training. 

 

Embellishment is often what I see when I read the property description on Zillow or Redfin, ".. Purrrrrrrrrrrrfect for large family. In Deltona Lakes Community close to shopping and schools. Spacious home with split bedroom floor plan. Inside laundry. Roofed patio and large rear yard. Needs some TLC so ''have it your way''. .Easy commute to Orlando area, DeLand & surrounding communities, Daytona and beaches."  

Most of these are subjective at best if not an embellishment.  The buyer then get the walk though and see new paint, new appliances, new carpet or laminate and falls in love with an embellishment of the home.  The buyer has been lead to believe, they are buying the perfect home.  Then, it is the job of the home inspector to present the facts about the property and just the facts.  Some homes are perfectly maintained and the disclosures are accurate.  Others, the truth is the flipper has painted over moisture stains on the drywall ceilings to cover a leaking roof or mold on the ceiling and it is the inspectors job to point out the truth of the property.  New laminate flooring over rotten sub-floor or damaged floor joists.  Lets face it, there is enough embellishment out there that we do not need to see it in an inspection report.  A picture is worth a thousand words.

 

I feel home inspectors are often generalized and lumped into the same group, Deal Killers.  We crawl under 100 year old homes that have rubble foundations and decayed wood, we deal with all kinds of critters; spiders, snakes, rats, raccoons and worse, in the crawl space and attics, and we take the blame for all that goes wrong with the deal.  The truth is most of the time the only thing that kills the deal is the condition of the home.

Home Inspection Raccoons in the attic

Aug 09, 2018 08:42 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Debbie - I hope the one you get is not one of those prognosticators. The one in our BNI group is just the facts. 

Aug 09, 2018 09:22 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Thankfully we have good inspectors on the buy side as we're worked with them for years.  Sometimes we get extremely picky ones on the sell side and then the agents suggests they write a long list of inspection requests which can be a deal killer in a hot market . Our homes per AZ contract are sold in as is condition but that doesn't mean buyers can't have an inspection and ask for repairs.  Good luck on your sale Debbie Reynolds !

Aug 09, 2018 10:11 AM
Scott Jones
J Scott Jones REALTORS - Winter Park, FL
GRI reMBA CREX CDPE GKC

Remember the old saying about 98% of the practitioners of (fill in the blank) give the rest of them a bad name! How VERY true when it comes to home inspectors. I don't have enough respect for these, often parasites, to even use a capital letter on their description. The industry is getting worse and worser (sp). I recently had one of these yo yo's show up at a quarter of a million dollar property wearing a hard hat with a light on the front of it and could find so little wrong that he opened up the valve on an underground LP gas canister for the pool and spa heater, called the Buyer over and told him "Smell that?" "I think there might be a gas leak!" So, the next day the gas company came over checked it out and firmly asserted there was no leak. The same inspector found two outlet covers in the kitchen that the screws were not tightened as far as they could be. 3 guesses who fixed that. I would have been embarrassed to tell our Seller that we allowed an idiot like that to poke around his home. His final parting shot was he recommended a licensed electrician look into a non functioning ceiling light in a vaulted ceiling. Apparently, in his learned opinion, and not a licensed electrician, he felt it took a licensed electrician to go up on a ladder and change a bulb. So, will next weeks new Internet joke be: How many home inspectors does it take to change a light bulb?

And, why, you might ask? They feel that to make anywhere close to what the overpaid Realtors or Title Insurance companies make, that they need to sell 3 inspections to each victim, scratch that, Customer, and then they might allow them to go ahead and buy one.

They will only get away with it for so long. Regulations are headed their way. Soon we hope.

Aug 09, 2018 10:40 AM
Scott Jones

Three Quarters of a Million DollarsHome.

Aug 13, 2018 10:57 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Debbie.  I prefer not to look at property inspector as a "deal killer" but simply as another set of eyes who can relay his/her experience. 

Aug 09, 2018 11:14 AM
Michael Rasch
International Property Finder - Property Option - Hallandale Beach, FL
Michael Rasch 305-741-1819

Hi, I hope your deal happens. All will go fair and well. Now to the matter at hand...

I have been on both sides of the fence ( buyers and sellers ), and each side needs to be taken care of carefully.

Listing side : I ask the seller if they would be inclined to know what the inspection report might show, howBecause we need to learn the counter and we might be able to preserve price by fixing what we can. If they say " I've lived in this house blah blah blah " then I know if there is more than a ton of   problems. When they says yes ASAP then I know there aren't too many. ... any excuse they offer that going towards a no, then I offer to halves if the price is near comps' 

Let me tell you something, by asking the seller to do this, I've been able to raise prices or hold tight to the values. best is when you have an old roof, I go out an get the estimate because a new roof does not depend on cash deals only and I can get a higher value for the place. Same thing for something as simple as finding air leaks in windows and cleaning the A/C professionally. 

 

Buyers side : I warn the buyers that the inspection will show us whats, good, bad and ugly. I tell them that most repairs required will be easy-ish and some of them will require the seller to change the price ( credit or reduction depends on the situation ). But if I see Aluminum wiring, roof leaks or flooding that is not disclosed on the seller's disclosure, then I tell my client we need to run or we need to get 3rd party contracting rates. Aluminum wiring won't get you a loan and is a fire risk, so maybe not even insurance, Roof Leaks can be a nightmare, solve now, not later unless already mitigation plan in effect, flooding, that requires a review of the surrounding area, lucky for me, I have my own flood maps with photo's, I can validate how bad anything get's. 

 

Also, a nifty trick after the inspection report, is to show your buyer how the repair is done via Youtube on the DIY channel. 

Also, I like to upload the inspection report on the listing, and tell the buyer's agent's via the broker's remarks that the pricing is taking into account the inspection report, and what we have fixed already, this help show that we priced responsible to the report 

 

have a great day everyone. 

Aug 09, 2018 01:08 PM
Roy Kelley
Retired - Gaithersburg, MD

This is very good reading for prospective home buyers and home sellers.

Aug 10, 2018 05:17 AM
Anonymous
Frank Bartlo

Very good article. I'm an experienced and vary thorough, but also very fair inspector who recently had a client literally make DEATH THREATS to me because his 20+ year old AC unit -- which ran great during the inspection, but had some damage to the grille I reported, as well as noting it was nearing the end of the typical functional life expectancy of such a unit - went out during a hot spell. As if I was expected to have a crystal ball!

So I put a strongly worded disclaimer that such an old unit can fail at any time when reporting a unit of that age that functions well, and tell the client that it's simply not possible to predict how long it can operate. That it could run fine for 15 more years or fail tomorrow. I don't recommend replacement, but make it clear they should not be too surprised if they need to replace a very old unit -- by reasonable standards, which is typically longer than most online references state, in my experience.

Each client is different, and we can't always weed out clientzillas. Sometimes I can see a client is very picky, in which case I'm extra careful to put things into perspective so they don't make mountains out of mole hills.

We can report things as reasonably as possible, but we can't make an unreasonable client reasonable.

Aug 10, 2018 08:30 PM
#48
Robert Vegas Bob Swetz
Las Vegas, NV

Hello Debbie and what a great post, great comments and information ;o)

"Where's the GOLD"?

Aug 10, 2018 10:41 PM
Melissa Spittel
Coldwell Banker Residential Brokerage - Westminster, MD
"Achieving Results Together "

Some home inspectors are definitely better than others, and most, if not all of us, know which ones they are, and don't recommend the "Deal Killers". Home inspections certainly seem to be worse negotiations than the initial offer!

Aug 17, 2018 07:27 PM