Home Sweet Home Group Inspection Protocol
YOU START WORKING WITH A BUYER - THEY ARE LOOKING AT HOMES
- In this market - due to shorter option periods….you may want to send them the inspection information before they go under contract so that they can research the inspectors and determine which one they would like to work with.
- Make sure your present the for your protection, get a home inspection document.
- Assist them in making sure the listing agent knows when the inspections will be.
- What inspections are needed: general, pool, hvac, termite????
- WAS THE HOME BUILT BEFORE 1978? If so, you need the Lead Based Paint Addendum and You need to have presented the lead based paint informational pamphlet.
- Advise your clients to attend the last 30 minutes of the inspection - you as the Realtor DO NOT need to attend.
INSPECTION COMPLETED - NOW WHAT?
- Inspector(s) should send your client the inspection report. Sometimes you get copied on the report. Inspection reports can take 24-48 hours.
- Your client needs to review the inspection report and inquire with the inspector about any items they question on the report. YOU are not a licensed inspector. YOU cannot advise on the items, YOU are a licensed Realtor.
- YOUR CLIENT needs to be the one who determines what is important to them. Advise them to make a list of items before you go over it with them. You may send them towards repairing two things YOU think are major issues while ignoring an item that you don’t feel is a big issue. 6 months down the road, when that “not big issue” becomes a big issue - they are unhappy with YOU. Let them lead the conversation.
- If a buyer does not point out an issue that you think is an issue - please bring it up.
- In a small percentage of cases the buyer does not ask for anything.
- In a good percentage of cases the buyer will ask for a few items, this does depend on market conditions. In a seller’s market, it is harder to negotiate many repairs.
- In some cases there are major faults with the property but it is up to the inspector and licensed contractors to help the buyer determine that.
- With some major issues - the buyer will decided to terminate. IF CHINESE DRYWALL ever comes up on your report, I need to hear about it ASAP. This was only used in a handful of neighborhoods in the Houston area.
- In many cases you are tasked to help the buyer set up additional inspections or quotes from local contractors. Many of those options are on our inspector page or vendor page. You then need to let the listing agent know when those additional inspections will be.
- Ace Handyman Services - The Woodlands can review your inspection report and quote you items from the pictures. They are listed in our preferred vendors.
- PLEASE DO NOT CHOOSE THE CONTRACTOR FOR THEM. If the only roofer you recommend goes out and does a terrible job and the roof leaks during the next storm - they will be unhappy with you even though you were just the messenger.
- The purpose of the vendor list is to make sure we are giving the client choices.
- The safest thing to do when negotiating repairs is to ask for money in lieu of repairs. This let’s the buyer be in charge of who and how their repair is handled and relays any warranties directly to the buyer.
- The amendment/contract calls for a licensed professional to handle all repairs. In some cases when it is minor things you may need to notate that the seller is handling those. (Light bulb replacements, pushing dirt away from the house, etc.)
- Remember when preparing the amendment if you have already ask for seller contribution towards closing costs - you must understand TWO THINGS: A. WHEN YOU AMEND THE AMOUNT YOU ADD IT TO THE TOTAL FROM THE CONTRACT. If contract calls for seller to pay for $3000 in buyer closing costs and repairs are $2000, your amendment should read $5000. B. If you are already getting the max seller contribution to closing costs then you need for seller to repair the items or reduce the price. The contribution section can max out and then buyer does not get all credits. (Read the contract to understand)
- You can negotiate repairs/terms with the listing agent verbally and send an amendment once you have come to terms.
- All repair negotiations need to be done DURING THE OPTION PERIOD.
- You will need to task yourself to check on the repairs and obtain any receipts for those repairs as your closing gets near. ALL REPAIR RECEIPTS AND ADDITIONAL INSPECTION REPORTS NEED TO BE IN THE BACKAGENT FILE.
- You need to remind the buyers to review those repairs during their walk through or sooner to make sure they are completed to your buyers satisfaction.
INSPECTION COVERSATION SCRIPT: "I believe you should have your inspection report by now. Have you had a chance to review it and do you have any questions for me at this time? In regards to questions pertaining to the items themselves and for better understanding of the issue you would want to contact the inspector directly. If you feel you have a good understanding of the issues, here are our next steps":
- Let me know what items are of biggest concern to you.
- Depending on what those items are, we may need additional inspections or quotes from contractors in regards to the repairs.
- IF THEY NEED MORE INFORMATION: Our inspector page has additional inspectors listed and our vendor list has local contractors that can come look at the repairs if needed. You can of course use any professionals you would like though. Just send us their information.Should you want additional inspections or quotes, If you would like to let me know which inspectors and contractors you would like to use, I can help you set that up. Would you be planning to be there and if so, what day would work best for you? Please remember this all has to be done during the option/inspection period.
YOU WILL WAIT FOR RESPONSE
REPAIR DISCUSSION WITH BUYER SCRIPT: So you would like to ask for: “this, this and that”. Great, would you like for the seller to repair these items? OR My suggestion is that we ask for money in lieu of repairs and you can handle the repairs after closing. (this is not an option if they repair is a lender required repair)
AMENDMENT PREPARED SCRIPT: Here is the amendment with the repair terms we discussed. Please review and let me know if you have any questions.
Please reach out to someone on your leadership team if you have any questions. If you are concerned about preparing the amendment, we can review it for you.