A Seller’s Response to a Buyer’s Home Inspection Report

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The home inspector was nitpicking; he was completely wrong in that statement; and he was complaining that a house built forty-five years ago does not meet up to current code. Sound familiar? Each inspector has his own style in phrasing his findings, and I might not fully agree with the different styles, but I only have an issue when an inspector is reaching to find a problem where there is none.

How do you deal with a buyer who is upset with the findings? I have become frustrated by some reports, and I would love to tell the home inspector what he did wrong, but this does not help the situation. You are still in the negotiating phase, and you need to work with the buyer to reach the goal which you both desire: the real estate sale. Here are steps in dealing with the inspection which concerns the buyer:

Situation One: the inspector points out a problem which you know he was incorrect about: let’s say that he says the oven is not working, but it is a new oven. The best option is to have a technician come out to look at the oven, and write a report as to its condition. However, it is an oven, and you may not want to spend that money. Buy an oven thermometer, and set the oven to a specific temperature to check the temperature with the thermometer. See for yourself if it is truly different. Now, on an air conditioning or electrical system would be better examined by a technician than by yourself.

Situation Two: the inspector mentions something which is easy to repair : my favorite example of this is the anti-siphon device on hose bibs. This is around six dollar part, which you can just screw onto the bib. Many repairs may be on your level, or may be handled by a local handyman. If they are a concern for the buyer, these repairs may not be too expensive, although if you look at prices inspectors list on their reports you could believe it may cost thousands ( a pet peeve of mine). Write a list of all of the repairs done to improve the house for the sale, and the repairs done due to the inspection report.

Situation Three: a major problem has been discovered which may incur huge costs to the buyer to repair. First is the problem immediate, or something that might happen? Immediate would be an issue like the foundation has been damaged in some way, and it needs a repair. In this case, you may need to negotiate a price reduction to help the buyer cover the expense, or have this done yourself. If it is a comment like the air conditioning may not last for the next year, then offer to pay for a home warranty for a year.

You have to remember that on many occasions that you will not know exactly what the inspector said, so do not argue directly. Show that there is another opinion if you feel that he was wrong, but other issues may not be major expenses; however, they are a concern for the buyer. Repair costs can be greatly inflated, so look at what the cost actually is through your own quote, or just handle the repairs on your own. If you want to sell the home, find a way to keep the negotiation going, and you may have a deal.

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8 Responses to “A Seller’s Response to a Buyer’s Home Inspection Report”

Nick Gromicko Says:
September 1st, 2008 at 5:20 pm
I am Founder of InterNACHI, the world’s largest inspection trade association operating in 9 languages and 48 countries.
Here is a little article I use:
Buying a home? The process can be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect. You will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs, environmental reports and what the inspector himself says during the inspection. All this combined with the seller’s disclosure and what you notice yourself makes the experience even more overwhelming. What should you do?
Relax. Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to know about. However, the issues that really matter will fall into four categories:
Major defects. An example of this would be a structural failure.
Things that lead to major defects. A small roof-flashing leak, for example.
Things that may hinder your ability to finance, legally occupy or insure the home.
Safety hazards, such as an exposed, live buss bar at the electric panel.
Anything in these categories should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4).
Most sellers are honest and are often surprised to learn of defects uncovered during an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Do not kill your deal over things that do not matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller’s disclosure or nit-picky items.
Nick Gromicko
Founder
InterNACHI
non-profit
http://www.nachi.org

Nick Gromicko Says:
September 1st, 2008 at 5:21 pm
Also, you may just want to have the seller get the inspection done first.
http://www.MoveInCertified.com
This has these advantages to the listing agent:
Agents can recommend certified InterNACHI inspectors to inspect the home properly before the buyer’s inspector arrives.
Sellers can schedule the inspections at seller’s convenience with little effort on the part of agents.
Sellers can assist inspectors during the inspections, something normally not done during buyer’s inspections.
Sellers can have inspectors correct any misstatements in the reports before they are generated.
Reports help sellers see their homes through the eyes of a critical, third-party, thus making sellers more realistic about asking price.
Agents are alerted to any immediate safety issues found, before other agents and potential buyers tour the home.
Repairs made ahead of time might make homes show better.
Move In Certified yard signs attract potential buyers.
The reports hosted on http://www.FetchReport.com entice potential buyers to tour MoveInCertified homes.
The reports provide third-party, unbiased opinions to offer to potential buyers.
MoveInCertified reports can be used as marketing tools to help sell the homes.
Reports might relieve prospective buyer’s unfounded suspicions, before they walk away.
Seller inspections eliminate buyer’s remorse that sometimes occurs just after an inspection.
Seller inspections reduce the need for negotiations and 11th-hour renegotiations.
Seller inspections relieve the agent of having to hurriedly procure repair estimates or schedule repairs.
The reports might encourage buyers to waive their inspection contingencies.
Deals are less likely to fall apart the way they often do when buyer’s inspections unexpectedly reveal problems, last minute.
Reports provide full-disclosure protection from future legal claims.

frankschulteladbeck Says:
September 1st, 2008 at 7:46 pm
Nick, it is an honor to have you come in and comment; thank you. This post was written, because I had a homeowner ask me to look over another inspector’s report. Although, it would be great for seller’s to realize that having their own inspection is a great way to head off issues before the buyer discovers them, this is not always the case.
I was hoping to find a way for sellers to realize that this situation should not end the deal. They should remain calm to proceed well. My desire is that these steps would provide a means for them to accomplish their wish.

Jack Says:
September 2nd, 2008 at 9:01 pm
I find it interesting that so many people have trouble with maintaining their homes enough to pass an inspector’s report. Perhaps people feel that they don’t have time or energy to make improvements or do basic maintenance. In many cases I think most people simply arn’t aware of what needs to be done in order to keep home appliances running smoothly, let alone the structure of the house itself.
Perhaps someone here will find this site to be helpful: http://homewarrantyresource.com/maintenance_library/
They have many maintenance tips, and even automatic reminders that you can set up to help you maintain your house and pass inspections. Hopefully this is useful to someone.

frankschulteladbeck Says:
September 2nd, 2008 at 10:19 pm
Thank you for dropping in. The maintenance library there is a useful resource, so thank you for pointing it out. Simple steps can save much grief later, and prevention is less costly than repair.

Les Le Gear Says:
March 23rd, 2010 at 8:10 am
Do you have to list a buyer’s inspector’s
findings on the seller’s disclosure form?
Deal fell through due to report. I’m told that
I have to list the defect (which I’m disputing)
on my seller’s disclosure. Please advise.

frankschulteladbeck Says:
March 23rd, 2010 at 10:19 am
You are required to inform buyers of issues that you are aware of on the seller’s disclosure. The key is that you are aware of. If you are disputing the home inspector’s report, then it may not be required to write down that finding on your disclosure form; however, it would be in your best interest to hire a specialist to discover if there is a real issue. If you do have a problem, then you can plan a course of action, such as having it repaired or lowering your asking price or whatever else you and your Realtor determine as a good action.
I was recently asked to estimate the cost of repairs on some items on my report. I hate that, because I do not spend the time determining exact causes. In this case, a valve was leaking, and it could have been a simple fix, but if there was further interior damage to the valve, we may have been speaking of a major repair. Foundations are also tricky. Just because the foundation may have problems does not always mean a repair is needed. Really, find out from a qualified professional what may be the issue, and what the solution is.

Torrance real estate inspection Says:
August 18th, 2010 at 6:51 am
Thanks for the information and this is really gonna help one who is going to buy the house.