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Who's afraid of the big bad Inspector?

By
Real Estate Agent with Beringer Realty/Paramount Properties Llc
    Good Morning All! Hope everyone made it through the wrath of Fay with flying colors. We have a pool full of leaves and we're exhausted from having a power outage and trying ( key word here) to sleep but no one is hurt and the roof is intact, so all is well.
     It is my birthday today. I find that birthday's are really only a big deal to you if it is yours and your Mama. Luckily I have a healthy, very much alive Mama and we are going out to dinner tonight to celebrate. It isn't a big one with a "0" on the end of it, but after having such a great year in this market I have lots to be thankful for and I just think celebrating is called for. Usually I just stick a candle in a muffin and call it a day. Anywho, that's that.
    NOW,  I will get to the point of this post.  I was talking with some other Realtors one day last week and the subject of Inspectors came up.  Immediately there were gutteral  moans that I have only heard animals make whe they are in some kind ofgastrointestinal pain.  I blurted out, " What up kids?", "why the moaning?". Oh, the answers all varied in color and flair but the result was the same. They all felt that various inspectors had blown sales for them in the past and recently.  They all asked me why I wasn't joining in on the lamenting. I boldly spoke up and let them know why.
     NO SALE HAS EVER BEEN BLOWN FOR ME BY AN INSPECTOR. No, you don't need to get a new reading glasses script, you read that right. I am serious. Yes, inspectors have found items that would cause a major concern  to a buyer and for a seller, but the inspector did not blow the sale. If the transaction did not close, it would be because I had not done my job as a Realtor. It is the Realtor's job to find a solution to the problem, no matter how scary, in order to hold the deal together. The inspector is SUPPOSED TO FIND DEFECTS AND CAN BE HELD LIABLE IF THEY GLOSS OVER THEM. 
      How can you always find a solution? Plan ahead kids, that is the only way. If you are helping someone market an older home ( even if it has been well maintained) budget at least $2000.00 for repairs that might be needed after an inspection. If you want to take the guess work out of it all together, get the place pre-inspected so you will have no surprises. I have never had a seller be upset that we had this done prior to marketing a home. Yes the buyer is going to want an inspection too. That is there right and obligation. If they have a Realtor who explains to them  that the inspector doesn't have a dog in the fight and is bound by ethics to state any defects they find of a health and safety nature or that would compromise the integrity of the structure they are usually good with just having that same inspector come back and perform a re-check. That saves them some money too, which is an incentive to some buyers in this current market.  If you are helping someone purchase an older home, warn them about what the findings might be but also let them know that they will probably be easily remedied and the seller is likely already budgeting for those repairs.  
     If you are helping someone purchase a home with a builder warranty go through and do a puch list and have the builder complete those items before closing. I often suggest putting off the inspection on these homes until the 10th or 11th month of the warranty and having the builder remedy those items before it (warranty) expires. The builder will have to agree to this in writing before you close the sale, but I haven't had one yet argue with this method.
     In summary, it is our charge as real estate professionals to keep everyone calm, cool and collected and to hold the transaction together. It is our job to ANTICIPATE PROBLEMS and come up with creative, mutually beneficial ways to over come them for our clients. It is easy to blame inspectors when a deal falls apart, but in reality it is our failing that will lose that home for a buyer and a sale for our home owner. So, put your thinking caps on kids and keep it together!

** If in the Montgomery Al real estate market as either a buyer or a seller and in need of professional real estate service call CJ Hodges 334-233-5848 or email cj.hodges@gmail.com. Visit wwww.beringerrealty.net and CjHodges.com. ****         

Comments(7)

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Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

I have had inspectors that have done a poor job of explaining things to buyers.  Most of them do a great job. I have had inspectors blow the sale.

Aug 24, 2008 05:12 AM
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

CJ -

The issue for we Realtors is to pre-frame the fact that every property, old or new, has blemishes, and that the buyer is putting in his specific price offer based on the condition of the home as it sits, with the expectation of some suggested inspection repair.

Technically, the purpose of the inspection is for HEALTH & SAFETY and STRUCTURAL ISSUES ONLY.  But - how is that truly defined?  In essence, the buyer can walk for virtually any reason.

That being said, I have found a number of inspectors who may have good technical knowledge, but poor "bedside manner."  Everything is a major issue for them, and they fail to prioritize major defects versus usual homeowner repairs. 

I've even seen a few home inspectors here in Chicago propose that buyers DEMAND large credits or repairs, or extensive inspection by high-priced electricians, plumbers, or structural engineers, when, in reality, they didn't really understand the problem

If you were to hire 10 different inspectors to evaluate the same house, they would most likely write 10 different inspection reports

Although the State of IL requires licensing of all home inspectors today, many still leave a lot to be desired.

So - you're "pre-framing" the home inspection process to your buyers is KEY!

DEAN & DEAN'S TEAM CHICAGO

Aug 24, 2008 05:23 AM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

CJ,

I agree with you. Almost always the deal will go through. I know some inspectors have bad manners too, but most of us try to do our jobs.

Aug 24, 2008 05:40 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Hey, CJ. Glad everything didn't get blown or washed away.

I loved this paragraph of yours:

NO SALE HAS EVER BEEN BLOWN FOR ME BY AN INSPECTOR. No, you don't need to get a new reading glasses script, you read that right. I am serious. Yes, inspectors have found items that would cause a major concern  to a buyer and for a seller, but the inspector did not blow the sale. If the transaction did not close, it would be because I had not done my job as a Realtor. It is the Realtor's job to find a solution to the problem, no matter how scary, in order to hold the deal together. The inspector is SUPPOSED TO FIND DEFECTS AND CAN BE HELD LIABLE IF THEY GLOSS OVER THEM. 

That should be a permanent item in Realtor magazines everywhere. Thanks for stating it so eloquently.

Aug 24, 2008 05:41 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Hey, Dean.

I'm so sorry you wrote this:

Technically, the purpose of the inspection is for HEALTH & SAFETY and STRUCTURAL ISSUES ONLY.

That couldn't be further from the truth, and there's not a single home inspector trade association anywhere, national or state, nor any Illiniois legal statutes or case law that backs up your statement. When Realtors try to define the purpose of a profession of which they are not a part, even if it complements our own profession, that's when problems arise.

For example, the following is from the InterNational Association of Certified Home Inspectors (www.nachi.org), the nation's largest home inspector trade association with over 9,000 members, and you'll find similar language at SPREI, ASHI, CREIA, KREIA, NAHI, etc.:

1. Definitions and Scope

1.1. A Home Inspection is a non-invasive visual examination of a residential dwelling, performed for a fee, which is designed to identify observed material defects within specific components of said dwelling.  Components may include any combination of mechanical, structural, electrical, plumbing, or other essential systems or portions of the home, as identified and agreed to by the Client and Inspector, prior to the inspection process.

I. A Home Inspection is intended to assist in evaluation of the overall condition of the dwelling. The inspection is based on observation of the visible and apparent condition of the structure and its components on the date of the inspection and not the prediction of future conditions.

II. A home inspection will not reveal every concern that exists or ever could exist, but only those material defects observed on the day of the inspection.

1.2. A Material Defect is a condition of a residential real property or any portion of it that would have a significant adverse impact on the value of the real property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect.

1.3. An Inspection report shall describe and identify in written format the inspected systems, structures, and components of the dwelling and shall identify material defects observed. Inspection reports may contain recommendations regarding conditions reported or recommendations for correction, monitoring or further evaluation by professionals, but this is not required.

Aug 24, 2008 05:47 AM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Jim,

As an inspector I did not get into clarifying Dean's comment. You did so I will comment. Actually, I kind of wish Dean's comment was the situation but, as you pointed out, it is not. If buyers bought into that theory, then it would be easier for an inspector...we would only call out the more significant problems. I have done many inspections and, knock on wood, I have had minimal complaints and never given a refund. However, the biggest beef I ever got, "missed something", was early in my career and from a guy who thought I should buy him a new disposal.

I said, in the report, something on the order of: "Disposal at kitchen sink has a leak, unit is aged, likely to be original to home, 10 years. Recommend repair by plumber."

Made sense to me. Anyway, the buyer, a month later, wanted me to buy him a new disposal. Why? Because my language, the word "repair" in his mind made it seem salvageable and he had to replace it. Cost was all of about $125.00 installed. Obviously, my wording now says "repair or replace". This gives a great example of how buyers are willing to get in the inspector's face on the smallest of items.

Sorry to say but, even though some realtors would like us to call only the big stuff, if we do that our phones ring with clients wanting us to pay for things we missed. And some of those things are nickel and dime stuff.

Aug 24, 2008 07:28 AM
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Although everyone that knows us, expects me to agree with Steve----in this case I must again.  It is true, there is no way to figure out in a home inspection what should be left out----so we have to simply tell the whole story and not try to second guess what is important to one buyer and inconsequential to another.

Aug 24, 2008 07:42 AM