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After a Request for Repair Has Been Completed, Should the Buyer Ask for a Reinspection?

By Elizabeth Weintraub Sacramento Broker

Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

December 20, 2008 01:47 PM

How a home buyer handles a Request for Repair depends on what type of repairs are needed. For example, if the water heater needs to be replaced, a buyer might specify a brand of water heater and ask that it be installed with a permit, if a permit is required. However, if the repair is structural, a buyer may be better off asking for a closing cost credit and hiring his or her own contractor.

The reasoning is sellers will often choose to pay as little as possible to fix a problem when the money is coming out of the seller's own pocket. This means that some sellers will hire the cheapest contractors and select the least expensive materials to do the job.

The problem with the seller completing repairs -- whether it's paying a termite company to issue a pest completion or a handyman / plumber to fix leaking plumbing -- is the buyer has no way of knowing if the work was actually done properly. If extensive pest work was done, I may suggest the buyer obtain a second pest inspection, primarily because the pest company that completed the work issues its own completion. Half the time the second pest company finds more work. If this is discovered during escrow, the first pest company must come back and fix it.

Some home inspectors charge to make a return trip to verify repairs, and some do not. Some inspectors build in a re-inspection fee in their initial inspection. Some Sacramento home inspectors, for example, return at no charge because the re-inspection is easy, the home is in their neighborhood and the home inspector receives many referrals from the agent. Other home inspectors routinely charge for a verification inspection.

I'd like to ask the real estate agents who read my blog whether the home inspectors they use charge for a re-inspection. A home inspector in Michigan who reads my About.com Home Buying Forum seems offended I would disclose that some home inspectors waive a re-inspection fee. I'd appreciate hearing about other agent's experiences. How do you handle re-inspections?

The Short Sale, by Elizabeth Weintraub, coming from publisher Archer Ellison in January 2009.

Photo: Big Stock Photo

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Bob & Carolin Benjamin

Benjamin Realty LLC - Gold Canyon, AZ

East Phoenix Arizona Homes

Many inspectors will come back for a reasonable fee. Happy holidays.

Dec 20, 2008 02:15 PM

Anonymous

James Lupori, Keller Williams North Seattle

Hi Elizabeth - I love inspection questions. I always try to follow a basic strategy when working with buyers and the inspector:

1) I suggest my clients interview several inspectors who have good reputations. They wil do re-inspections for minimal fees (why should they work for free after all?).

2) After the ), we write up the inspection response to include the following language:

" All work orders to be completed by a specific date, by licensed, bonded contractors TO THE BUYER'S FULL SATISFACTION, with invoices and work order documentation given to the buyers 5 days prior to closing AND there is to be a walk-through inspection 3-5 days prior to closing. If the work is not completed as specified, then earnest money is to be returned to the buyers."

3) I never advise my clients to accept credit in lieu of repairs except for small or non-saftey items. Just wait until your cients accept a $1000 credit for an aging furnace repair only to discover, after closing, that the job will actually cost $5000. For big items: roofs, furnaces, AC/HVAC, foundation work, etc., demand the work be done by the seller prior to closing.

4) OF COURSE, MAKE SURE YOU'VE DOCUMENTED YOUR CONVERSATIONS WITH THE BUYERS SHOULD THEY CHOOSE TO DISREGARD YOUR ADVISE............not that this ever happens.

Dec 20, 2008 02:32 PM

#21

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

Hi Again!
In response to James' response, if there are more major problems, I would be certain to get a bid or two so there won't be any surprises. In California, there is no such thing as "safety and health" issues in our contract (much to the surprise of many agents who don't really read the contract). In fact, our contract says that the buyer is taking the property in it's present condition. In reality, most of the time there are repairs done by the seller anyway. They are usually items that couldn't be known by a visual tour of the home.

Dec 20, 2008 03:09 PM

Roland Woodworth

Blue Cord Realty - Clarksville, TN

Blue Cord Realty

Elizabeth: This is something to think about.. Some times sellers do fast work and should be re-inspected to ensure a workmanship like job has been completed

Dec 20, 2008 03:22 PM

Shane OnullGorman

Eau Claire Realty, Inc. - Eau Claire, WI

Eau Claire Wisconsin, Real Estate Agent & Realtor- Buy or Sell

I dont think it could hurt. I mean you should see it has been done.

Dec 20, 2008 03:24 PM

Myrl Jeffcoat

Sacramento, CA

Greater Sacramento Realtor - Retired

Elizabeth - I've yet to have a reinspection performed by a Home Inspector. Most buyers seem content to see receipts for work performed, and verifying on walk-thru that repairs have actually been made. Your idea of having a Home Inspector reinspection, certainly seems like a good idea however. Certainly something to consider. I've also had funds held in escrow or credited to the buyer for estimated work required. And I prefer having buyers select their workmen, when possible.

Dec 20, 2008 03:39 PM

Charles Stallions

Charles Stallions Real Estate Services - Pensacola, FL

850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

I think here all repairs are to be done by a licensed person. But I always make sure and have their license number written on their bill. I haven't had a reinspection done though so I need to think about that.

Dec 20, 2008 03:49 PM

Not a real person

San Diego, CA

That was me at 11:47 pm above. It seems that whenever I click on a post in the blog scrolls and make a comment, ActiveRain kicks me out and then posts the comment by someone anonymous. If I go directly to the person's blog and comment, that doesn't occur.

Dec 20, 2008 03:51 PM

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

I would like to respond to Russel. Russel, I agree, your time is money. I rarely need an inspector to go back and check a repair, so maybe the reason they don't charge is because it is a rarity that I ask and they know that I am a loyal client. I would never take advantage and have offered to pay...they just have refused.

Dec 20, 2008 04:01 PM

Patty Carroll

Vancouver, WA

Yes, the inspection company that we work withcharges a $100.00 re-inspection fee.

Dec 20, 2008 04:37 PM

Jim Lee, REALTOR, CRS, ABR

RE/MAX Shoreline - Portsmouth, NH

Buying or Selling? Ann & Jim are the local experts

50 bucks for a reinspection.

I think buyers are better off asking for credit instead of seller repairs. Get estimates from reputable companies to know what it will cost.

Dec 20, 2008 04:48 PM

Missy Caulk

Missy Caulk TEAM - Ann Arbor, MI

Savvy Realtor - Ann Arbor Real Estate

I see it sometimes and if the buyer wants it done, the inspectors I use will do it with no charge. However, usually a paid receipt from the seller and a visual at the walk-though is fine.

I guess if someone hired an inspector not in my local area, they would charge to drive back into Ann Arbor.

Dec 21, 2008 12:18 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

Thanks, everybody, for your replies.

The problem with a paid receipt is the company may have gone out of business by the time a defect is discovered, and the sellers could have moved out of state or, worse, croaked. That's why it's a good idea to verify that the repairs were completed properly before escrow closes, when there is still time to do something about it.

As for credits, it's also recommended that a buyer obtain 2 to 3 estimates for the work. If any of the estimates say additional charges may be incurred, then we increase the credit.

In California, standard C.A.R. purchase contracts state the buyer is purchasing the property in "as is" condition, but that doesn't preclude the buyer from asking for repairs. It also doesn't bind the seller to completing the requested repairs nor giving the buyer a credit. That's where a good negotiator comes in handy. :)

If there is any kind of question about the quality of the work completed before escrow closes, I always recommend a re-inspection. Once, when a home inspector had to crawl under the house to check a bathtub plumbing leak, he charged the buyers $50, but many of them do re-inspect at no charge in Sacramento. It seems that the practice is split across the country.

Dec 21, 2008 03:02 AM

Debi Ernst

St. Charles County, Missouri - Prudential Alliance Realtors - O'Fallon, MO

GRI, e-PRO, Broker/Sales Associate

Elizabeth - I've had a reinspection done once. The inspector charged about $75 or less (I can't remember exactly.). :)

Dec 21, 2008 03:32 AM

TIM MONCRIEF

Tim Monciref - Austin, TX

Over 2,000 homes sold…..

Yes on the question of a reinspection fee. Remember the question to ask is are you putting your client's interests above yours? You have to go the extra mile to make sure that you are putting the extra effort in to make sure your clients interest are well above yours.

You are in court and the plaintiff's attorney ask you "why did you refuse to have the house reinspected to make sure that the work was done properly for you client....why...why?" Hopefully you will have an answer......

Dec 21, 2008 04:21 AM

Anonymous

I am not a real estate agent but I strongly believe that if repairs are to be made, a reinspection should be necessary. I watched one of those court shows a while ago where the seller was to make repairs. He decided to do them him self and totally botched it. The buyers didn't do a reinspection but they did receive compensation for repairs.

Here, when I was an agent, the inpector I used waived the reinspection fee. I thought of that as a way to form a lasting partnership and to gain referrals.

Dec 21, 2008 06:03 AM

#35

Lenn Harley

Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA

Real Estate Broker - Virginia & Maryland

Of course an inspector should charge for a reinspection. Why would they not?

Inspectors perform vital services and are not paid commensurate with the importance of their contribution to the transaction.

If serious defects are found that involve carpentry, windows, flooring, roofing, etc., who is going to inspect the work? Surely not the agent. The buyer can accept the repairs but better not come back complaining later on.

Until the day when home owners perform good maintenance on their home, stop hiding defects, provide honest disclosures, etc. the home inspector is the buyer's best friend, after their agent.

Dec 21, 2008 06:32 AM

Jodi Bakst

Team Jodi Realty - Chapel Hill, NC

Team Jodi - Chapel Hill Real Estate, Durham Real E

Inspectors in the Chapel Hill and Durham NC markets all charge for reinspections. They typically charge about $150 for the return visit. I am a strong believer in doing a reinspection both to hold the sellers feet to the fire and to ensure everything was done properly. I always advise my buyer clients to do this if there is a long list of repairs. If the list is short and the repairs are minor I do not recommend the reinspection. Regardless if there is a reinspection or not, we look at all of the repairs during our final walk through.

Dec 21, 2008 09:05 AM

Elizabeth Weintraub Sacramento Broker

Elizabeth Anne Weintraub, Broker - Sacramento, CA

Put 40 years of experience to work for you

To re-inspect or not to re-inspect from my perspective has to do with whether the repairs are simple to confirm and easy to access. If it's painting the front steps, that doesn't need to be re-inspected. But items that require a permit and no permit was produced or complicated structural issues or work under the house, absolutely, they should be reinspected.

I have clients right now who insisted on a second pest report that revealed more work required under the home, which is being completed. I explained that the pest company is on the hook, that it promised to pour footings, but the buyer's only recourse after closing is to go after the company. The likelihood is it will be completed as promised, especially since it's the pest company's second go-around. But I did offer these clients the opportunity to call the inspector back. They decided the risk of noncompletion was too small, and that's their choice to make.

Dec 21, 2008 12:03 PM

Paul Gapski

Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA

619-504-8999,#1 Resource SD Relo

Thank you for sharing your blog; we need Real estate Professionals to share their comments and information regarding their markets and experiences. Thanks again from beautiful Sunny San Diego

Aug 05, 2012 01:10 AM