|Real Estate Information|
Dead Deals and Recycled Reports
Everyone knows that at the end of a home inspection, a report is generated that outlines the findings of the home inspector. But did you know that this is not intended to be a "hit list" of negatives? Us home inspectors do what we do in order to objectively describe the home. This is not the place for emotion, rather a simple stating of the facts. Homes do not pass or fail inspections, they merely describe the strengths or weakness.
Inspections are also not intended to favor buyer or seller. In fact, the greatest flattery an inspector can receive is for the seller of a recently inspected home to call the same inspector to inspect their next home. This action tells all that the inspector discovered every defect known to the seller, discussed and documented those defects in a fair and objective manner. Furthermore, any unknowns discovered were likewise handled with objective fairness. This outcome should be the inspector's goal for every inspection.
Sometimes situations do arise where the person who contracted for the home inspection chooses not to or is unable to complete the transaction. When a new buyer is found, it is a common thought to use the previous report as a decision tool for this new buyer.
This is an extremely dangerous practice!
This is among the prime reasons that nearly all inspectors stipulate in their inspection agreement that the home inspection is considered a confidential communication between buyer and inspector.
Why do inspectors feel so strongly about this particular piece of the issue? Primarily because?
The written inspection document is not the complete home inspection experience!
What? How can this be?
Because, the written document only supports the observations and dialogs exchanged by all parties at the inspection. While it is certainly correct that all that is written in the report and all that is said at the inspection should be consistent, the total understanding by the buyer of the inspection comes from blending the observed with the spoken and with the written.
A new buyer viewing only the written portion of the inspection is missing much in the understanding, perspective, and context of the total inspection experience. This is a high-risk practice and should always be avoided.
Old Reports for New Buyers. When the original buyer leaves the transaction, generally the inspection report goes with that buyer. Because of the issues of confidentiality and, just as importantly, the completeness of understanding by the new buyer, a new inspection should be ordered.
However, in some cases, the original buyer, being the kind and decent souls that they are, will sometimes give the now "useless" report to the agent, who now has another party interested in the home. How wonderful! More often, however, the original buyer of the home inspection does not know of the report handoff.
The agent and the new buyer can now use the old report as a decision tool, and all without expense. The agent is a hero to the new buyer!
Yikes! No one told the new buyer about confidentiality, or about completeness of the inspection report and experience. But, even more importantly, no one told the new buyer that there is another key reason not to engage in such a practice - things change!
An inspection report is a snapshot in time of the observable conditions of the home. That picture can change in an instant!
Things do happen to homes. Should the roof now leak or the air-conditioning now not cool, this would be an unknown to the buyer. Whether or not the seller knew is a whole other issue.
The buyer, after taking possession of the home and discovering the failure and expense to repair of failing systems, has been harmed by the lack of documentation of defect in the written inspection report. When people feel harmed, they seek relief.
When such is the case, most buyers will initially seek relief from the home inspector. Several problems exist is seeking relief from this source. Among the problems is the fact that the home inspector did not miss the failed systems, they were functioning as intended and correctly described at the time of inspection of the written report.
Next among the problems for the new buyer in seeking relief from the original inspector is that the new buyer is not the customer with whom the inspector had the complete inspection experience and confidential agreement. Nope, there is no relief forthcoming from this inspector.
Advice For Agents. So now, where does the harmed, and getting hotter all the time, homeowner go for relief? The agent of course! That seems rotten and unreasonable; the agent did their buyer a favor! But, it was usually the real estate agent who improperly provided the previous inspection report. Worse yet, in many cases, it turns out that the complete written report was not provided, only a summary. This always goes badly for the agent!
Not only is the homeowner mad at the agent, but also the potential exists for the original buyer to discover that their report has been shared with a new buyer. If there was no permission to do this, that original buyer is typically very upset with the agent. This original buyer paid for the report and now feels betrayed by the agent. More bad news for the agent!
In the situation where the agent is still working with the original buyer for a different home than inspected, I have seen the buyer so upset with the agent that they have terminated that relationship. Strangely enough, they stayed with the same home inspector. Relationships in real estate are about trust, and giving away someone's report is a great way to lose that trust.
So now, the agent has on one hand an aggravated homeowner that wants to be compensated, and on the other hand has just lost a potential buyer. That looks like money going out and nothing coming in! This is not a good business situation. Ultimately, sharing home inspection reports with multiple customers is not a good business practice.
This subject and more about the interactions and relationships in real estate are discussed in Wally Conway's book, "Secrets of the Happy Home Inspector", available at GoHomePro.com or Amazon.com. As a speaker, writer, instructor, and host of The Happy Home Inspector radio show every Saturday at 3 PM on WOKV 690, Wally blends the right amount of up-to-date information with just the right amount of humor, insight, motivation, and real-world application. Visit WallyConway.com or GoHomePro.com for more information!
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Kings Bay Georgia Real Estate - An Amusing Tale About a Real Estate Agent
This story is true and not meant to hurt anyone, but the more that I think about what happened, the more it makes me laugh. I hope that you not only get a chuckle from it as I did, but take your time and look for a professional real estate agent.
Real Estate Development Feasibility Study (Income) - $1.2 Billion Developer Tells You How To Do One
There are two sides to a feasibility study and in an earlier article I discussed the cost side of the format and:Now Let's Discuss The Income SideWithout the Sales Income, All You've Done Is Spend Money, And Anyone Can Do That.So that we are clear in what I am going to define for you, let me say that there are two forms of Income.
Alicante to Mar Menor - You can Still Find Cheap Property in Spain
The Murcia region in Spain benefits from some of the most beautiful coastlines of Europe. Nowhere else will you find so many fascinating contrasts - with Spanish Mediterranean architecture, magnificent mountain ranges and beautiful long sandy beaches.
Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own!
In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead.
Do I Have To Buy Real Estate Through An Agent?
Sometimes when we are very busy professionals and very rich it might be convenient to let an agent do the groundwork for us. Letting them make appointments, drive to the property, roam through house after house sizing them up until they find a few great homes that might be just perfect for us.
Secrets of Making Money from Real Estate - Part 1
There are three investment vehicles which can make you rich. Stocks, businesses, and real estate.
Selling Houses: Flooring & Feelings
Buyers think they love Italian tile and other hard floor surfaces, but they actually feel happier when they're walking on softer surfaces such as padded carpeting and padded laminate. Even so, you'll want to give some serious thought to the floors in your home if you want to sell quickly, and for the highest profit.
Home Inspectors: 5 Tips to Choosing the Right One
Choosing the wrong Home Inspector can cost you a lot more than the fee you paid. If you choose a home inspector solely on price alone, your headed down a dangerous highway.
Real Estate Problem Solver
IntroductionThere are many areas one can invest in. Since I was 15 years old I have looked for the fastest, most effective way to accumulate a lot of wealth, with the least amount of risk.
Home Inspectors - Negotiating a Lower Price
To help you negotiate a fair sale price for a home, it's best to get an appraisal and inspection report. Even if you agree directly with the home seller on a sale price, you may want these items to safeguard the value of your new investment.
Selling Houses: Psychological Effects of Landscaping
Buyers think they care more about the inside of the house than the landscaping, but in reality, most buyers won't even get out of their car if the front landscaping lacks the promise of great details inside. Therefore, your landscaping needs to arouse buyers' expectations and entice them into viewing the inside of your home.
Buying Land Online
In the old days people generally only bought land and improved Real Estate in the areas in which they lived or traveled often. Today, thanks to the blossoming of the Internet, one can purchase land all over the United States from the comfort of home.
Why Not To Invest In Bulgarian Property
According to research carried out by the Thomson Group, owning a property abroad is now the ambition of over 50% of the British population. Not surprisingly Spain and Cyprus remain the most popular destinations for second home buyers while countries like France, Italy and Portugal continue to grab their fair share of the property investment gold rush!While the usual suspects will always attract the more cautious, risk aversive investor, the most recent generation of property investors can't seem to get enough of what our Eastern European neighbours have to offer.
Mechanics Lien on Your House
In many places you can buy a house and a contractor can put a lien on it within 90 days of construction or delivery of materials. For example if a contractor fails to pay a subcontractor he/she can place a lien against your real estate.
Escrow From a California Homeowners Perspective
The Escrow ProcessBoth Buyer and Seller deserve the assurance that no funds or property will change hands until all of the instructions in the Purchase Contract have been satisfied. The Realtor submits Buyers and Sellers signed documents and Buyer's deposit money to be held by an independent neutral third party (Escrow).
Selling Your Home - Be Sure It Shows Well
Whether you are selling a house, townhouse, condo or apartment, there are universal tips that will help it sell. Primary among those tips are making sure your home "shows well.
FSBO - Selling Your Home FSBO (for sale by owner) - Is It Worth It?
FSBO, what is it? FSBO means For Sale by Owner, and it's a term that's generally referred to when you're selling your home without soliciting help from a Realtor.FSBO, what's the benefit to you? You'll save thousands of dollars in commissions if you sell your home this way.
Juggling The Day With A Deal
Doing deals with sellers is why you went into lease purchasing. Again, using organization and time management is very important here.
I Already Have an MLS Listing, Why Do I Need an Internet Ad?
In today's real estate market, astute buyers are also looking to realize savings by dealing directly with the seller. They use internet search engines and keyword sets (Atlanta real estate advertising, Atlanta for sale by owner, Atlanta FSBO) to locate for sale by owner (FSBO) properties on the web.
Dont be Tempted by We Buy Houses (Updated)
Do you want to sell your home right away? Don't be tempted by "We Buy Houses" or "Sell Your House in 9 days for Cash" ads and billboards.Savvy real estate investors run these ads and put up posters looking for sellers under duress.
home | site map | Blog |
Exchange Links Here | Links page |