Home Selling in Acworth>Question Details

Patti, Real Estate Pro in Acworth, GA

We have a buyer (young, first time) that have 16 items on their inspection amendment requested, from an

Asked by Patti, Acworth, GA Wed Apr 16, 2008

inspector that we do not have a lot of confidence in. How do we respond? We want to make the offer work but some items are totally unrealistic.

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Patti
I think it's important to have clear expectations. The buyers are not buying a new house. It's like buying a used car in some respects. I would figure out the cost and importance of each tiem, counter with an explanation of what the seller is willing and able to do.

PS They are not buying a new home.
2 votes Thank Flag Link Thu Apr 17, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Are the requests going to cost hundreds or thousands of dollars? If it is hundreds than just do it, who cares if you agree with the inspection or not. You want to sell the house right? I see all kinds of ridiculous requsts from inspections, but unless they are really costly, I say do it so that this contingency is over. More often than not the sellers are just taking the inspection too personal, so step away, take a deep breath and look at the big picture. Certainly don't make any repairs until they have removed all of their other contingencies if there are more.
Some buyers are just trying to negotiate a lower price with the inspection report, so be aware of that as well.
1 vote Thank Flag Link Thu Apr 17, 2008
Unfortunately, some inspectors prove their worth to their clients by the amount of items they can put on the list to fix. You might want to take a look at all the items and offer an amount at closing, in a check paid to the vendor of the buyer's choice, to cover the major item(s) that you agree might need to be repaired. If the buyer accepts, you can put this behind you and the check will be cut at closing from your proceeds of the sale.
Web Reference: http://www.denboerhomes.com
1 vote Thank Flag Link Wed Apr 16, 2008
Hi Patti, much like the process of negotiating the offer, working through the inspection contingency is another volley of requests and responses between the parties. I always try to get ahead of the curve with my buyers and remind them that a handful of issues that really matter is far more compelling than a long laundry list. Buyers have the right to ask, and sellers to respond. Keep the conversation friendly and make it clear that you want to hold it together. Repond positively on the items that make sense and push back on the others. See what comes back on the volley - and keep the ball moving.

Best of luck.
Jeannie Feenick
Weichert Realtors
Search and connect at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Fri Jul 25, 2008
Patti,

If your client wants to ask for them, you should simply ask for them. Nothing is totally unrealistic. In due diligence periods, anything goes. The deciding factor on how it will turn out is how you deliver the request. Ask your buyers to prioritize the MUST DOS or the deal is off and the stuff that if the seller decided not to do would be ok. Warn them that asking for all the items may cause the seller to do a less than stellar job. You could also ask for money (most buyers like money) to go to a handyman who'd be given the list.

Just having an inspection report with a bunch of stuff on it isn't a deal killer. Handle it with professionalism and tact and you can ask for it all. Keep in mind you hire an inspector to find the problems. Also, don't let the seller and the listing agent know you don't have confidence in the inspector or you'll be opening up a new can of worms.
0 votes Thank Flag Link Fri Jul 25, 2008
Joshua Jarvis, Real Estate Pro in Duluth, GA
MVP'08
Contact
16 items on an inspection amendment is not bad. Look at it objectively and determine what you feel is reasonable. When I work with my buyers, we often ask for more than we expect. I tell my buyers we may not get it, but it doesn't hurt to ask. If it's a plumbing issue, bring in your plumber and get a professional opinion. If it's a roof issue, bring in your roofer, etc. If some items are totally unrealistic, then explain that to the buyer's agent in a nice way. Start with determining what the seller is willing to fix, like a creaky door can be fixed with some WD40. Agree to fix things that are a safety concern. That's important. Those things will come up again with the next potential buyer too.
Last month, the inspector for my buyers came up with an 87 page report! We condensed it into 6 pages of what needed to be taken care of and the seller, much to our surprise, agreed to take care of most of it. We wanted the expensive and safety things done, such as plumbing, electrical, HVAC. The inspector also recommended a new roof. We brought out a reputable roofing company to give us an estimate and they said we didn't need a new roof, although he would have loved to sell a new one.
My sellers and I had a buyer last month who asked for the home to be repainted on the inside just because they didn't like the color. We agreed to fix the electrical outlet that needed to be grounded. Pick and choose what is reasonable in cost and time. Ask your broker for assistance on this or you can feel free to contact me. I'd be glad to help you out.

Jennifer Bowman
Success Realty
404-456-5024
http://www.JenBowman.com
Web Reference: http://www.JenBowman.com
0 votes Thank Flag Link Thu Jul 24, 2008
In this market, buyers feel that they hold alot of power (and some of them do). I have worked with many who feel that if you wont do what they want, then they will find a seller who will. That seems to be the problem with so many homes to choose from. My suggestion is to try and make it work but at the same time know that your home is valuable and stand your ground. Have you thought of just offering money in liu of repairs? This may or may not be allowed by the mortgage co. however, it may save you from having to fix alot of petty repairs.
0 votes Thank Flag Link Thu Jul 24, 2008
In today's market I understand your desire to make it work. I just experienced the very same situation with my last closing. There is no majic to this though, every situation is different. We ended up placing agreed upon funds in the Attorney's Escrow account. The buyer had their people make repairs after closing and the venders took receipts to Attorney for payment. Any left over funds would be returned to Seller after a certain date. That way the buyer had it done and control of the work. Good Luck! A bird in hand is worth 20 in the bush!
Linda New, Broker
Crye-Leike Realtors
http://www.lindanew.crye-leike.com
0 votes Thank Flag Link Sun May 4, 2008
Bob, Gale, Peter, Lorrie, Paul are all correct, but I think Bob is the closest to this. Some inspectors pick things out that they really should leave alone, like minor cosmetic repairs and the like. But this is how they justify their fee. Unfortunately, with the market the way it is and the new contracts that don't allow for defect / non-defect discrepancies, many agents are just putting everything on the inspection amendment because they can. There are other homes out there that the owners would be willing to do anything required to sell. It may be a pain to get the things done, but if it's not a huge financial hardship, then get them done. I can refer you a handyman or two to give you quotes if you'd like.
0 votes Thank Flag Link Thu Apr 17, 2008
Actually 16 items are not bad on a resale. Items that are safety issues, code issues and things in non working order need to be fixed unless the code items are grandfathered in. If this is an FHA loan a lot of those items will have be to be fixed anyway to pass inspection.
0 votes Thank Flag Link Thu Apr 17, 2008
I would talk to their agent and find out if he/she prepared them for the many many many things that the home inspector will list on the report so that they are not shocked when they see so many items on the report. If they did that in the first place and the agent has set it up already for them to realize that everything on the list is not something that nessecarily needs to be requested then that makes it alot easier if that is done upfront. If it isn't then sometimes they expect it all to be done. Sometimes their agent may even lead them to believe that they can get all of it negotiated to be done (but let's hope they were a little more realistic). Even if their agent hasn't done this upfront, perhaps you can reason with the agent and then in turn they can bring the buyers more down to earth. I cannot imagine that all 16 things are something major the the seller should fix, that is a little excessive. I hope everything works out for your deal and that everyone realizes that some things are not a big deal and can be easily fixed at a little to no cost sometimes. (for example I've seen some buyers request the wiring to be properly insulated from the ac unit to the home, and I can do something as easy as that with pipe insulation bought for under $5 at the home store)
0 votes Thank Flag Link Wed Apr 16, 2008
First, we need to know what was on the Addendum. As you know, a buyer can request anything they want on an Addendum and the seller just responds "No". Send me a copy of the Addendum and I will try and comment. How old is the residence? I have been doing Inspections for 25 years. "oregonwest@comcast.net"
0 votes Thank Flag Link Wed Apr 16, 2008
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