A Better Way to Conduct Home Inspections
Nearly every residential real estate purchase involves the buyer hiring a home inspector to investigate the condition of the home and explain the findings in person, in writing, or both; one of the most overwrought parts of the buying process.
In most parts of the country, home inspectors arrive at the site with the buyer and the buyer’s agent and proceed to drag tools, meters, and a ladder around the house like the Pied Piper while a parade of little mice tag along behind and pepper (usually) him with questions. Sometimes the seller might even be enthusiastic enough to join in, contributing explanations or arguments. Then, after several hours of nonsense, the party adjourns to the kitchen counter to summarize the findings. A written report is often provided a few days later, presumably after the inspector has had time to collect his or her thoughts and organize them on paper.
Like most aspects of the real estate business, I think we can do better than this. In some parts of the country, we already do.
The Beginning
In some places, local custom is for the home inspector to arrive at the home independently. If the home is vacant or depending on how well the seller or listing agent knows the inspector, he may simply let himself into the home using a lockbox and begin working. The inspector is left alone to focus on looking for clues, taking detailed notes and photos, and running down the items that aren’t adding up. Most importantly, he has room to experiment.
Given, well, ego…most of us don’t like to experiment in front of our clients. If a buyer is watching our every move, we’re likely to stick to the things we’re sure about and avoid exploring because we want to appear professional and knowledgeable. So, buyers receive a more thorough product since they’re not stepping on the heels of the inspector.
The Listing Agent’s Role
The listing agent may stay on-site in the interest of protecting the seller’s property from a stranger, and that’s fine. The listing agent should stay out of the inspector’s way and respect that the inspector is working for the buyer, so even though the topic is the seller’s home, and even though the seller may be radiating nervous energy on inspection day, the buyer has purchased the service and the inspector owes the buyer great service.
What About the Seller?
The seller should not be at the home, but I’ve never heard of a contract provision requiring that. If the seller insists on being present for the inspection, it’s the listing agent’s responsibility to set the expectation, directly and firmly, that the seller stays out of the way and does not contribute seemingly helpful information that may cause a problem later. The listing agent should stick like glue to the seller’s side throughout the inspection, so at least she knows what was said. Yes, it is the seller’s home and his castle (for now), but if he wants to sell his castle, the buyer will likely inspect thoroughly.
Where Does the Buyer Come In?
It’s most preferable the buyer, usually accompanied by the buyer’s agent, arrive at the inspection at the conclusion of the inspector’s work By this time the inspector, relieved of the earlier pressure to perform in front of the buyer, can have drafted a thorough report and be ready to give the buyer his or her full attention while touring through the home. The buyer is welcome to get as “hands-on” as in any inspection, and the home inspector is more prepared to accurately answer questions since he’s seen the whole home. The inspector can also update his report comments and photos as they walk through, based on the buyer’s level of understanding. And by the end of the inspection, the report can be ready to email to the buyer, so the buyer and the buyer’s agent have one less item to chase down later.
“The inspector must be willing to set aside time following the inspection to fully review the report, answer questions, and demonstrate key features of the property to the client. This is why we generate and review the full report with the client during the review meeting and walk them around the house to show them key items such as the electrical shut-off, water shut-off, and anything else of potential significance. We believe that by using this method the buyer can receive a better, more thorough inspection and also be more focused at the review of the property.”
What Is a Good Inspection Report?
A word about inspection reports. In this day and age, there is no excuse for an inspector to be using a carbon copy, hand-written report. A typed report is the general public’s expectation. Not only are hand-written reports often illegible, but they are also difficult for the agent to keep on file or convert to electronic copies in order to meet our record-keeping requirements. An electronic copy is the preferred medium but may be supplemented by a printed copy for the buyer’s ease. Just like an MLS listing, inspection reports should always include photos, particularly to show proof of the deficient items. Videos are even appreciated if a deficiency is difficult to demonstrate with a still camera. Photographic evidence along with a thorough written description is a necessity a buyer’s agent will use to carry forward any of the buyer’s concerns to the listing agent. Inspectors who provide high-quality reports will be known for being easy to work with and will generate repeat business.
The Buyer’s Agent
What is the buyer’s agent’s role during this type of home inspection? It’s the same as a traditional model, really. The buyer’s agent provides moral support to the buyer, becomes aware of the details of the home in case any problems arise that affect the transaction, and helps the buyer develop a plan for the next steps of the transaction, negotiating the inspection contingency. Frustrated with your current home inspection process and ready for a change? Give this method a try on your next home inspection. It’s more efficient for all parties and you get a better quality inspection. Your home inspector and your clients will all benefit.