Using report for price negotiation

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#1

Originally Posted By: Richard Stanley
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I think I saw an article on this site regarding using an inspection report as a negotiating tool or something like that. Can’t seem to locate it now. Does anyone know what I am talking about??? Nick???

#2

Originally Posted By: Nick Gromicko
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Richard:


You're right. There were two.

One is long gone because members felt it was slightly anti-inspector. That is... it put inspectors in the uncomfortable position of being intentionally used to bargain with the seller. I disagreed at the time but I am the low man on the totem pole (so to speak) in that I feel it is my job to assess and then accomplish what our members desire. Nearly all the members who read it... immediately hated it. So... we got rid of it. I have since evolved ("evolved" is my word for coming around to think like our membership). I now believe and agree that inspectors need not remind buyers that an advantage of having a home inspection is the negotiating power it provides.

The other article is just the reverse. It reminds sellers that a prelisting inspection can help diminish the buyers ability to negotiate. In a prelisting inspection your client would be the seller and you would be inspecting the house he is selling. This article is at http://www.nachi.org/prelisting.htm I'm not sure you can even get to it (few links to it) unless you know the page address. NACHI.org is getting kind of big. As a point of contract law: in a real estate sales agreement, the buyer cannot argue (after an offer is made) over defects disclosed before the offer was made. There is some mention of this point in the last sentence of http://www.nachi.org/what_really_matters.htm too.

Reminder: Members can remove my name and put their own name on these articles if they want.

Nick

#3

Originally Posted By: Richard Stanley
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Thanks Nick.


I incorporated some of the ‘what really matters info’ into my reports some time ago. Pre listing inspections only seem to get positive response and use in California. I was told that the reason for that was that Cal real estate law placed some responsibility for property condition disclosure on to the real estate agents and that in some cases the agents were procurring the inspections at the time of listing for their own cya. As for negotiation value of an inspection report - a lot of new buyers are ignorant of the rights that they have in a ‘contract’ (Note: I was a practicing Broker for several years until I got over it.) Even though the contract spells out their rights and obligations, the mountain of paperwork tends to obscure it/them. And, it is the buyers responsibility to consult with their attorney, etc., etc. And the buyers agent is supposed to be taking care of them, even though their payment is commission when the deal closes!!! There is an old chinese saying - sum ting wong.

#4

Originally Posted By: Nick Gromicko
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I know what you mean. As a buyer’s agent I feel funny about getting paid 1/2 of the commission paid by the seller (who is not my client). But then I remember… the seller doesn’t have any money at closing… All the money at closing is brought by the buyer…my client.


Nick

#5

Originally Posted By: rking
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Hi Nick,


Is it a standard clause in 'Offers to Purchase" down there that the sale is "Contingent upon a satisfactory home inspection"?
It is up here and is used two ways. First an 'out' for the purchaser, and secondly to remove any liability from the real estate agent.

--
Muskoka Home Inspections
"Wisdom is the Anticipation of the Consequences"
Steering Committee Member At Large

#6

Originally Posted By: Nick Gromicko
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Robert:


It is similar down here in the States but often with a dollar figure so sales aren't hung up over nit-picky items.

Nick

#7

Originally Posted By: rray
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Anything in the home inspection report can be used as a purchase contract escape here in San Diego. I found out that one of my Clients backed out of a deal on a 2002, 2-story house because there were no window screens anywhere (they interfered with the view, according to the seller, so seller sold them all).


Now before you start thinking "incredulous," remember that you don't know what's going on in the buyer's mind. A good Realtor would have offered to buy screens for this house ($1,000 maybe) in order to close the sale and make $15,000 commission. And, in fact, the Realtor did.

However, it turns out that the buyers were relocating from Boston where they lived in a three-story brownstone. They were leaving Boston and moving as far away as possible because of bad memories in Boston. Those bad memories? Their 2-year old child had fallen out of a second-story window and died; no screens.

They just were not emotionally prepared to deal with screens that were missing, so they did not. I did the inspection on the next house they were buying. Virtually an identical house, same neighborhood, etc. The difference? It had screens.

--
Home inspections. . . .
One home at a time.

#8

Originally Posted By: ecrofutt
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I know most of you know this but;


Remember that screens are meant to keep bugs out, not children in.

Other devices are needed to keep children from falling out.

--
Erby Crofutt
B4U Close Home Inspections
Georgetown, Kentucky
www.b4uclose.com

#9

Originally Posted By: jmyers
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Russel,


God Bless them, I know I would be devastated if one of my children fell out a window and died. I would certainly have a very difficult time dealing with it also.

Erby,

Thanks for repeating that common sense guide. I just don't think it is something most people think about, at least until it is too late. I personally have all those blocks in our windows which prevent them from opening more than a few inches! THANK GOD!

Joe Myers

#10

Originally Posted By: jhagarty
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–
Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.
#11

Originally Posted By: rray
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Responsible parents do need to take responsibility. But I bet everyone reading this (except we gay people who have no children and have no children visiting us) has had that one moment when their child was out of sight. Especially in today’s world with phone/pager/etc. distractions.


I've seen the new screens with the labels. They are just starting to show up out here.

Screens, however, will help prevent a child from falling out of a window. Why? Because the little child's fingers can't grab hold of the outside of the window sill to pull himself up; it's blocked by the screens, and the screens provide nothing to grab hold of.

Every case I've ever read about children falling out of windows has also stated that there were no screens on the window. Now why is that? I've never read, "The child apparently removed the screens, pulled himself up, and fell out the window." Sometimes small measures can make big differences.

--
Home inspections. . . .
One home at a time.