A home inspection is one of the last, and undoubtedly most nerve-wracking, pieces of the home selling/home buying process.
There are several ways to help your clients as either a listing agent or buying agent throughout the home inspection process. As a real estate professional, it’s part of your responsibility to prepare your client for the home inspection.
If you’re a listing agent, you can help sellers prepare for the appointment by providing resources and advice on preparing the home. If you’re a buyers agent, you can provide home inspection company referrals, attend the inspection with your clients, and guide them during the renegotiation process.
Continue reading for more information on how to help your client with the home inspection:
What the Inspection Report Means for Sellers
The detailed report may help back the list price or influence the buyer to negotiate a lower offer. No home is perfect, and sellers should always expect some dings to come back on the report. If the report reveals minor issues, a seller should still expect the buyer to request compensation or minor repairs.
As a real estate professional, you can help your seller prepare for the home inspection. The listing is likely already decluttered and cleaned in preparation for the real estate listing shoot, but tidying it up shows the inspector that the seller maintains their home.
Additionally, you can help your seller decide on any necessary repairs needed before the inspection.
As mentioned above, the home inspection may reveal minor or significant issues with the listing, and sellers should prepare for the buyer to ask for compensation. The seller can either agree to repairs/compensation or decline the request. You need to help your seller navigate the renegotiation process and help them come to a financially beneficial decision.
The home inspection period is the last opportunity for a buyer to back out of the contract. Your seller needs to keep this in mind upon receiving the inspection report.
What the Inspection Report Means for Buyers
A typical home inspection helps shed light on the buyer’s upcoming real estate purchase. No two home inspectors uncover the same issues. Therefore, the buyer needs to find a reputable home inspector, especially when purchasing an older property. As a buyer’s agent, you can send your client home inspection referrals within your sphere of influence.
After receiving the home inspection report, buyers can dispute issues and request compensation or repairs. Your client can demand concessions for every noted mark, but most agents do not recommend that tactic. Consider helping your client choose their top three concessions. A seller is more likely to accommodate fewer, more essential repair requests.
Major Issues May Affect Sale Price
While most inspection reports uncover minor issues with a home, significant problems may affect the sale price. If the report reveals an expensive or time-consuming problem, the buyer might back out of the contract. Additionally, the seller must disclose any discovered issues to future potential buyers.
Major, expensive problems may include foundation and septic issues, cracks in the mainline, roofing issues, termite infestations, unlevel or sinking ground, and more.
When an inspector discovers costly issues, the buyer may want a specialized company to provide additional inspections. As a real estate agent, you can give the buyer your expertise and honest opinion on any issues but reiterate that these are solely your opinions and that the ultimate decision is theirs. You do not want to be liable for their choices.
A home inspection is a beneficial opportunity for the buyers to understand any defects with their future home. This process is also the last opportunity to renegotiate the list price or withdraw from the contract altogether. Your job is to guide your client through the inspection process, whether selling or buying.
