Investment propertySeven Tips to Surviving the Inspection
I"ve always worked in historic neighborhoods, so the ability to negotiate inspections has been a critical part of my success. And yeah, I"ve gotten good at it. If you"re interested, I"ll share some of my secrets with you.
First, attend your inspections! I can"t believe how many agents don"t and I think that"s abysmal customer service. I know the attorney-types tell you to avoid inspections like the plague, just in case you get sued as a result of being there, but to that, I say: baloney!
I"d much rather take the chance of maybe getting sued (and in 12 years it"s never happened to me) than risk losing the loyalty of my buyer client by not being there (and remember, he"s the gatekeeper to all his potential home-buying friends).
Here"s why I think it"s important to attend:
It"s hard to negotiate repairs found during inspection that you didn"t see firsthand.
Your buyer expects you to be there and your credibility will take a hit if you don"t attend.
It"s good customer service.
When you"re new, inspections are an excellent opportunity to further your real estate education.
You need to be able to recommend good inspectors to your buyers and if you don"t attend inspections, how can you judge?
Second, never, ever belittle your buyer"s concerns. Never say,"Well, it"s an old house, you can"t expect it to be perfect." Your buyer isn"t an idiot, he knows that. The minute he thinks you"re trying to talk him out of being concerned about an issue, he"ll feel you"re more interested in your paycheck than in his purchase. You"ll lose his trust, and thus, his future referrals.
Third, take your directory of contractors with you to the inspection. If issues arise, it"s helpful to have phone numbers on hand to make phone calls on the spot for answers. For example, in one of my recent tough inspections, we came across an asbestos tile roof (in 12 years I"ve never heard of such a thing). The inspector expressed serious concern about it and my buyers were freaked out. I was able to call my roofer and get more information about asbestos roofs which put everyone"s mind at ease... and the inspection continued. I also had the phone number of my insurance agent with me, so we were able to call him to ensure that an asbestos roof was insurable (it is).
Fourth, if you don"t have your very own handyman on call, make this your top priority. You must have a great handyman in your back pocket to be a great real estate agent. I often call my handyman during inspections with a question and he"s been known to even drop everything and rush over to check it out... thus putting my buyer"s mind at ease (or at least making me look fantastic).
Fifth, if an inspection goes poorly, let your buyers sleep on it. Inspections can be exhausting, but after a good night"s sleep, your buyers may feel much better.
Sixth, when preparing an inspection notice for the seller, never, ever use inflammatory language. Just state your requests clearly and succinctly, without embellishment. For example, instead of saying "Seller shall repair the leak under the kitchen sink to avoid further mold and mildew damage to the cabinet, flooring and possibly the basement ceiling." Simply say, "Seller shall repair the leak under the kitchen sink." Seventh, keep your inspection requests to as few bullet points as possible. Group your requests into categories; for example, all plumbing issues go under one bullet, all electrical items under one bullet.
It can"t be emphasized enough... always support your buyer, not your paycheck, no matter how badly you need that paycheck. Put yourself in your buyer"s shoes and advise accordingly. The brownie points you win by truly being on his side will pay off big time for you; not only in this transaction, but for years to come when he tells everyone he knows what a great Realtor you are.