Home Inspections
What to expect?

Good morning everyone,

Just the other day, one of my clients called and had a question about the home inspection results they received from me; aka Inspection Objection. Before I get into the details, here is a little background for you about this client.

A nice family here in Colorado Springs asked me to work with them to help sell their 3-year-old home in Banning Lewis Ranch. To our surprise, it took a bit longer to get under contract then we would have liked but did get it under contract. As part of this contract, the Buyer asked for the right to do a home inspection (one they could have also have chosen to wave; not recommend). So just a few days after contract was signed by both parties, the buyer hired a third party home inspector to come in a preform the inspecton. During the inspection, the inspector did find a few things they wanted to bring to the Buyer attention with a Home Inspection Report. These reports are normally very long, as was the case with this one. It was nearly 50 pages long and this was for a house that was 3 years old! The good news for us was there was very, very few items that needed to be addressed; in the Buyer mind. So the Buyer and the Buyer Agent submitted an Inspection Objection for myself and the Seller to review and decide what items the seller wanted to correct or fix at their expense.

Home Inspeciton Process - Inspection Objection and Resolution

This was our list Home Inspection Objections.
1. Seller to have qualified contractor replace damaged rear sliding screen door and torn screen that does not close completely, allowing insects and water intrusion. Item 2.2 from Inspection Report.

2. Seller to have qualified electrical contractor evaluate laundry room exhaust fan that runs continuously and is not controlled by either switch in the laundry room. Contractor to locate or install switch /repair or replace fan upon evaluation. Item 6.9 from Inspection Report.

3. Seller to have qualified electrical contractor evaluate and label breaker #20 in the electrical panel. Item 9.1 from Inspection Report.

4. Seller to have qualified HVAC contractor service the furnace and change the filter which was identified as dirty. Items 10.0 and 10.3 from Inspection Report.

5. Seller to have qualified contractor replace the insulation foam sleeve on the air conditioner unit to alleviate the potential for water damage/mold growth/efficiency issues. Item 10.8 from Inspection Report.

6. Seller to have qualified contractor evaluate bubbling paint on the kitchen wall behind the large fish tank that was identified as an additional disclosure item via an email from the listing agent on June 28th. Upon evaluation, seller to have contractor make necessary repairs/texture/paint and ensure there is not moisture behind the wall. Attached email from listing agent.

Seller/Listing Agent to provide all receipts/documentation for repairs/replacements for items #1-5 48 hrs prior to walkthrough and closing. Seller/ Listing Agent to provide receipts/documentation for #6 within 5 days of tank removal.

Home Insepction Resolution
My Seller took a couple days to review this list and then called me to discuss how they wanted to proceed.

Seller: Well Chris we really don’t want to fix any of these items. In part becasue we don’t have a surplus of money to do them with the move and all (we have all been there!). We would prefer to drop the sales price $2000 instead.

Me: Ok, well that curtianly is a direction you can take, but I do not recommend it. The Buyer in the case has requested only very minor issues for us to resolve for them. Push back on this list might cause an issues where the Buyer chooses to kill the contract (which they can do) because they really want these items fixed (they can also chose to submit a counter too). I recommend we change the wording on a couple of these to limit the risk. For example: In #1 above where it says “Seller to have qualified contractor replace damaged rear sliding screen door and torn screen that does not close completely, allowing insects and water intrusion. Item 2.2 from Inspection Report.” what if we need to replace the siding door frame in order to get the screen door to close properly… Well we might not want to go that fair, right? So lets change the wording to something like “Seller to repair or replace screen door to patio.” This would limit or risk a bit more without leaving the repair open ended.

Seller: Ok, that sounds good but we still do not have the money to do these things…

Me: How about I cover these repairs and get reembursed from the proceeds (money owed to the seller after closing) at closing?

Seller: You would do that?

Me: Sure, in this case. We are not talking about a huge amount of money and this keeps the sale moving forward and the Buyer and Seller happy on their advneture. Thats we want, right?

Seller: Yes

Me: Cool. Lets do that. Once the Buyer signs the Inspection Resolution, I will call the contracts I use for my Fix and Flip properties and get them working on fixing these items. Note this also makes the repairs cheaper than normal, because of my prior relationship with these contractor. Not to mention I have used them personnal and trust them to not only be on time, but also to do a great job, to code every time!

As you can see by this situation there are normally a few different direction the Buyer and Seller can take to resolve each parties concerns. The goal here must be two fold. First keeep everyone happy. Second, to work together to make sure this happens. Drawing a line in the sand and getting firm is almost never a good idea and neither is a Win-Loss solution. Work together. This means the Buyer, the Seller and both Agents!

If you have’nt already, please watch the video above too, as there is some additional details in the video regarding Home Inspectors and what to know before hiring one! Its very important!

Looking to hire a home inspector, check out our other article Who to Know in 719

Regards,
Chris