To Inspect or Not to Inspect

Why is this even a question?

I’ve always thought buyer’s inspections were kind of a no-brainer when it comes to purchasing a home.  If I’m dropping a quarter of a million dollars (or much, much more) on something, you better believe I’m gonna want to have someone who knows what to look for give it a good going-over before I commit to paying for it for the next 30 years!  I mean, it’s not like you can just browse through Amazon Reviews to get the lowdown on your potential new house — only a trained professional can provide a comprehensive picture of the home’s overall condition.

So I was quite surprised to find, when reading the comments section of a recent online real estate magazine article on this very topic, that so many Realtors seem to disagree, or are at least on the fence about whether or not to encourage buyers to get an inspection.  As I’m reading the negative comments I’m shaking my head and thinking, are you nuts!?

First of all, yes I know: if you want to keep your faith in humankind NEVER READ THE COMMENTS!  Having already broken that golden rule, however, my curiosity was piqued.  I decided I should conduct my own small, informal survey of other real estate agents to get their thoughts on the subject.

Now let me backtrack a moment, for anyone unfamiliar with the home buying/home inspection process:

When we write an offer to purchase a home, it’s common practice to include an option period (generally 5 – 10 days) for which a buyer will pay a nominal fee (like $100, say) and which gives them the unrestricted right to terminate the contract for any reason without losing their earnest money deposit (which will probably be several thousand dollars, depending on the price of the home).  And this option period is used, in most cases, to hire an inspector to come out and go over the house very carefully, making sure buyers know exactly what they’re getting before buying.

The inspector will check out the the electrical and plumbing systems, the HVAC and any appliances that will convey with the home, like the stove and the dishwasher.  They will look at the water heater, check out the condition of the roof, measure attic insulation levels, look for any evidence of foundation troubles or wood-destroying insect activity.  They will make sure windows and doors latch properly and check all the home’s safety features like smoke detectors and stair rails. Outside, the inspector will check out how sprinkler systems and garage doors are functioning, as well as make note of any tree limbs brushing the roof (which can lead to damage/displacement of shingles) or vegetation growing too close to the foundation (which can trap moisture and lead to erosion).

While sellers are legally required to disclose to buyers any of the home’s known defects or anything which might negatively impact its value, oftentimes they are unaware of their home’s flaws.  For instance, I can’t say I have EVER crawled out on my roof to make sure all the shingles are intact; I just assume they are.  Or if a seller listed their home for sale during our scorching central Texas summer, would they know their heating system was malfunctioning, or would that fact only be discovered by the new buyers the following January?

You can see why having this information is key, especially if this is the buyer’s first home where they might not necessarily know what kinds of things to look for themselves, or in an older home which is prone to age-related defects like we all are.

So why would a real estate agent, especially one representing the buyers, not encourage them to get an inspection?

What I gathered from my little survey was that it really comes down to the quality of the inspector themselves, and to what they uncover.  While some agents complained that inspectors overlooked obvious defects in the home which then caused big problems when they were later discovered, a far more common complaint was the reverse: the inspector uncovered too many little, inconsequential flaws (their words, not mine) which then jeopardized the sale by scaring off the buyers, or inciting them to present a massive list of demands for seller repairs or giving them apparent grounds to renegotiate the sales price.

And this is where Realtors can help by setting proper expectations up front with buyers with regard to what they can and should be looking for in a home inspection.  Yes, inspectors will (and should) disclose even minor defects, like interior doors that stick or bathroom faucets in need of re-caulking, but agents need to work with buyers in understanding that just because a small flaw exists doesn’t mean it needs to be addressed prior to the sale.

I encourage my buyers to focus on big ticket items or safety risks and not to get bogged down with minor defects.  I remind them that the purpose of the inspection is to make sure the home they are considering is solid and safe to live in.  I try to convey that the things to ask a seller to repair need to be reasonable.  Or if a seller has indicated they don’t wish to make any repairs, that they be reasonable in making a financial allowance to the buyers so that they may have it repaired after the sale.  I try to appeal to everybody’s sense of decency and fairness, and remind them (if need be) that we are all working toward the same goal, which is the sale of a particular home!  The inspector just provides the information needed so we can all work together to accomplish this.

Don’t shoot the messenger, you know? 🙂

 

Why I Love Working With First-Time Home Buyers

Almost as exciting for me as it is for them

I love working with first time home buyers!

I love guiding them carefully through what can be a daunting and confusing process… and then slowly begin burying them under a silent avalanche of paperwork to read, contracts to sign, listings to pour over.

I like watching them struggle to memorize a whole array of terms they’ve never had use for before: appraised value, restrictive covenants, earnest money, warranty deed.

I love getting to know their likes and dislikes as we tour properties, gently reminding that that hideous sofa isn’t actually staying with the house, or that garden gnomes are not immovable fixtures.

I love trapping them in my car to tour just one more property before we call it a day.  Because this one might be THE ONE.

I love seeing their eyes light up when they finally find the right house, like a little kid on Christmas morning spotting a new bike under the tree.  Then, of course, watching that light flicker and dim while we await the seller’s response to our offer.

I love learning new vocabulary words from them in reference to dawdling and obstinate sellers.

I love their sigh of relief when the offer is accepted, and again when the house finally appraises at the right value.  (When I can then much more easily blame any further delays on the mortgage company.)

And I love closing day, when their excitement can’t even be crushed by the titanic mound of papers facing them, each one requiring their signature, culminating in a handover of keys into their eager hands, at least one of which now features acute, tendonitis-like pain.

And finally, because once it’s all done they let you pose them with silly props…

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Oh the thrill of new home ownership and balloons

Even upside down props! (Which you are laughing too hard to even notice the fact that it’s upside down…)

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The key to happiness, or to my room at the loony bin

All kidding aside, it truly does tickle me to work with first time buyers.  Even in our age of HGTV-educated consumers, a lot of folks are still almost completely unfamiliar with the whole process; getting to walk with them through what will likely be one of the biggest –if not THE biggest — purchases of their life is almost as exciting for me as it is for them.

Bless their hearts. 🙂