Stop Inspections from Killing Deals!Daniel Dobbs2023-05-26T08:23:43-07:00
The following is a condensed version from Inman, by John Giffen,
He is the author of “Do You Have a Minute? An Award-Winning Real Estate Managing Broker Reveals Keys for Industry Success.”
Get the Lowest Interest Rate, Fees, and Fastest Service
YouTube – Straight Talk Lending – Daniel Dobbs
1. Home Inspections Have Limitations
Even though many inspectors are good at their jobs, they are usually not adequately trained or have the experience or expertise to provide a valid professional opinion on the systems and structure of a property.
A typical home inspection is just one person’s review of the home’s systems and their function.
Inspectors usually aren’t heating, cooling experts or structural engineers.
A buyer should seek out licensed, specialized professionals who can properly inspect and evaluate a system or structural defect.
2. The Inspector Always Finds Issues
However, what they find may or may not be a problem. The buyer will need to decide whether or not to investigate further to see if a real issue exists.
3. The Report can be Overwhelming
Most inspectors use a pre-written template from a computer software program to generate an inspection report. The report contains many pages of information most reports include the inspector’s findings plus tips on the interior and exterior home maintenance and other topics related to homeownership.
Prepare the client for what they will receive in their email, so they won’t be alarmed by all that is written in the inspector’s report.
4. The Older the Home the More Issues
Before the home inspection, remind the buyers that they are not purchasing a new home.. Existing homes have some wear and tear on them, like high mileage on a car. Water in the crawl space, mold, fungus, broken window seals, and even radon gas can all be remediated.
Don’t walk away if the issues found can be easily corrected either before or after the buyer closes on the property.
5. Seek Outside Expert
Having an expert investigate further into an issue the home inspector discovered can alleviate the buyer’s concerns, so they feel comfortable in moving forward in the transaction.
An additional inspection can confirm a system or structural element of the home is in good working order, or a serious issue needs to be addressed before closing the deal.
Hire a licensed electrician, plumber, roofer, and contractor to inspect the components of the property to see if they are sound and in working order. It costs more, but you have licensed pros who know what to look for.
6. Don’t Ask the Seller to Fix Everything
Be realistic on the requested items to be repaired or replaced by the seller. Adversarial relationships are challenging to manage. Keep the list realistic, noting the significant issues the seller should take care of before closing.
7. Be Careful with Your Words
Agents should keep their opinions on reports & repairs to themselves. Their role is to shepherd clients through the inspection process, not offer advice for matters they are not licensed for.
8. Maintain and Promote a Sense Of ‘Calm‘
Emotions of the seller and buyer, as well as their agents, can run high. Everyone needs to take a deep breath and remember the “bigger picture” in their home-buying process. The home inspection can make or break a real estate transaction.
If the buyer knows what to expect and understands how to navigate the inspection process, you’ll have earned a commission check!