How to Avoid Home Inspection Failures

Why do so many homes come back on the market after inspection failures?

Have you experienced a home inspection failure? Most home buyers request an inspection contingency with their offer, although I am seeing a trend towards waiving this contingency in lower priced homes where the competition is nothing short of red hot. An inspection contingency is one of the major hurdles in any transaction regardless of price. But why do deals fall apart during this critical time? Why more home inspection failures? Here are three common scenarios.

1. With so many homes selling in multiple offer situations, it can be hard to stand out among a handful of offers. Obviously, an above-asking price offer is something that will catch any seller’s attention. However, a ridiculously high offer is nothing more than a bid for a future opportunity. An opportunity for a buyer to secure your home then try to renegotiate that inflated offer price during the inspection contingency. If they cannot get the home for the price they really want to pay, then they will walk away. Intent with any offer is critical. We understand how GREAT agents show intent with their offers.
2. Some buyers have lost out on so many homes that they are frustrated. This frustration leads them to focus on securing an offer on any home they like rather than securing an offer on a home they love. Once reality sets in that they finally got an accepted offer, the feeling of “Have we just settled for less than we really wanted?” sets in. With this method of shopping for homes, buyers end up using the inspection contingency period to digest whether they really want the home at all. Home purchases have always been an emotional decision. The struggle is real and some have had their hearts broken one too many times. If they are not “feeling it” a week or so into the contingency, they will back away.
3. Of course, some buyers simply walk away because of real inspection issues that cannot be negotiated to a compromise with the sellers. Sellers may have a handful of backup offers waiting in the wings and may not be willing to repair much. That is not to say all buyers are willing to overlook issues, especially anything they believe a seller would need to repair for another buyer. Inspection requests can also be very price point sensitive. In the current Grand Valley housing market, lower priced homes may see fewer requests because the buyers are simply happy to have finally secured a home! Compare that with higher priced homes where buyers expect perfection. Lengthy inspection request lists are something we proactively help our sellers avoid. Keep reading to find out how.

Regardless of why buyers walks away after a home inspection failures, we understand the importance of getting the first offer to stick. Each time a home sale falls through for any reason, the price tends to drop. We can successfully help you navigate your way through the inspection contingency to make sure your offer sticks the first time.

We reduce your stress, give you the upper hand in inspection negotiations, and provide you with better sleep during your inspection contingency!

One of the most stressful periods in the process for a home seller is after securing an offer. Almost all home buyers will make their offer contingent upon an inspection, and the inspection period can take a week or more. The anxiety many sellers experience while dreading what a buyer’s inspector might find is real and it’s also avoidable. I’ve attended hundreds of home inspections for my buyers over the years and have negotiated hundreds more for my sellers. I know the common items inspectors flag for repair, and I know which items most buyers can live with.  I also understand the negotiating techniques that good agents use to get more for their clients with their inspection requests.

When selling a home, the negotiations don’t stop at the time of the offer. There is an entirely different set of circumstances to negotiate after a home inspection. Unfortunately for many sellers, emotions are running very high at this point in the transaction. Many sellers feel trapped into giving away thousands of dollars in concessions or unwarranted repairs just to keep the sale intact.  This is exactly why I have every home pre-inspected before it gets listed. It’s part of the Sold for More™ process.

Pre-inspecting gives you, the seller, the upper hand in inspection negotiations. Yet less than 1% of the homes I have ever toured in my career have been pre-inspected. You see, real estate agents believe that the only reason for pre-inspecting a home is to give potential buyers a sense of comfort, so they feel confident moving forward with an offer. Most don’t find it worth the money when homes are selling at a brisk pace. Unfortunately, the industry has it all wrong. Pre-inspecting homes is all for the benefit of the seller to help avoid home inspection failures during negotiations!

Here is just one example.

You are a home seller with a 20-year-old furnace that is getting towards the end of its useful life, but it still works just fine. Our buyer clients secure an offer on your home and their inspector notes the age and life expectancy of the furnace. We recommend to our clients that we request to have the furnace inspected and the heat exchanger visually inspected for cracks. We don’t want the furnace simply cleaned like the majority of the real estate agents will request. We want the heat exchanger inspected. Why? Because a furnace can be running perfectly fine, CO2 levels in check etc., but if the heat exchanger is cracked, the HVAC tech is required to “red tag” the furnace and shut it down. Negotiations are over at this point, but guess who ends up buying our clients a new furnace? Yes, that’s right, the seller!  Had the seller pre-inspected the furnace and installed a new one before listing, they probably could have recouped some of that cost by pricing their home accordingly.

Agents constantly claim they have great negotiating skills, but few provide the guidance to give you the upper hand to avoid home inspection failures.

If you want an agent that represents your best interests in buying or selling a home with a proven track record, and plenty of experience to back it up, give the Homes Sold for More™ Team a call today.

Read Our Commitment to You and learn more about our proven process for home sellers.

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