Comments on: When Should an Inspection Kill a Real Estate Deal? http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/ Austin Real Estate Blog Fri, 11 May 2012 17:13:15 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Grant Pollet http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-43192 Grant Pollet Wed, 22 Oct 2008 16:51:23 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-43192 If the agent is representing the seller, he should mentally prepare his client that any known defects could become points of negotiation. Here is what I always ask myself and tell my clients as well: if the house has any many defects and is as bad as the buyer claims, why do they even want the house to begin with? You also really have to discern if you are selling to an investor or someone who will occupy the property. When the inspection results come in, this will have everything to do as to whether the owner should keep his ground or accept a lower price. For many, this is a game of intimidation. Don't be bullied and know your limit. -Thanks, Grant Pollet If the agent is representing the seller, he should mentally prepare his client that any known defects could become points of negotiation. Here is what I always ask myself and tell my clients as well: if the house has any many defects and is as bad as the buyer claims, why do they even want the house to begin with? You also really have to discern if you are selling to an investor or someone who will occupy the property. When the inspection results come in, this will have everything to do as to whether the owner should keep his ground or accept a lower price. For many, this is a game of intimidation. Don’t be bullied and know your limit.
-Thanks, Grant Pollet

]]> By: Kimberly http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-278 Kimberly Wed, 13 Sep 2006 06:25:06 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-278 How about this. Buyer comes in and low balls, even though they know another offer is on the table. Other offer is accepted, then falls through. Buyer comes back, responds to seller's counter just above original offer, and changes sellers' $5000 cap on repairs to $7000K. Seller agrees to price and cap. Seller's agent insists client will respect cap (here in CA repairs must be only if things are not operable...not to bring things up to code or to new condition). Enter into contract. Inspections done. Buyer nitpicks outside of required repairs, and above cap, and attempts to negotiate for $3K more in repairs. Now, being that "There is nothing unethical about a party trying to negotiate for the best deal they can obtain", at what point does the seller say ENOUGH. It may not be "unethical" but it sure as he** is rude and a waste of a seller's time to misrepresent your or your client's attitude towards already agreed upon points of a contract. And I don't think the agent is to blame in the posted situation. Agents are go betweens and advisors, they can hardly be held responsible for the clients' decisions. In our circumstance, we are so irritated by the buyer, we might take losing some money over having to give in _again_. Cutting off our noses despite our faces perhaps, but everyone has a limit. How about this.
Buyer comes in and low balls, even though they know another offer is on the table. Other offer is accepted, then falls through.
Buyer comes back, responds to seller’s counter just above original offer, and changes sellers’ $5000 cap on repairs to $7000K.
Seller agrees to price and cap.
Seller’s agent insists client will respect cap (here in CA repairs must be only if things are not operable…not to bring things up to code or to new condition).
Enter into contract. Inspections done. Buyer nitpicks outside of required repairs, and above cap, and attempts to negotiate for $3K more in repairs.

Now, being that “There is nothing unethical about a party trying to negotiate for the best deal they can obtain”, at what point does the seller say ENOUGH.

It may not be “unethical” but it sure as he** is rude and a waste of a seller’s time to misrepresent your or your client’s attitude towards already agreed upon points of a contract.

And I don’t think the agent is to blame in the posted situation. Agents are go betweens and advisors, they can hardly be held responsible for the clients’ decisions. In our circumstance, we are so irritated by the buyer, we might take losing some money over having to give in _again_. Cutting off our noses despite our faces perhaps, but everyone has a limit.

]]> By: leo http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-277 leo Sat, 09 Sep 2006 01:11:18 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-277 $620,000 home. advertised as ultra high quality custom built... better than new construction. about 25% of the windows had broken seals (some with "growth"). (home only 8yrs old) all buyers (us) asked for was replace those 9 windows. seller refused... contract terminated. don't think i (as buyers agent) didn't try everything possible to save deal.... buyers went out of their way to ignore other "inspection related problems"... the window company went belly-up a few yrs agon due to defective windows!.... i pity the sellers! $620,000 home. advertised as ultra high quality custom built… better than new construction.
about 25% of the windows had broken seals (some with “growth”). (home only 8yrs old)
all buyers (us) asked for was replace those 9 windows.
seller refused… contract terminated. don’t think i (as buyers agent) didn’t try everything possible to save deal…. buyers went out of their way to ignore other “inspection related problems”… the window company went belly-up a few yrs agon due to defective windows!…. i pity the sellers!

]]> By: Naples Florida Real Estate http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-276 Naples Florida Real Estate Fri, 01 Sep 2006 19:59:14 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-276 I don't think it's the listing agent's fault. Agents can offer real estate advice but that's where they need to stop and let their buyers/sellers make their own decisions. I'm sure the listing agent provided advice to the sellers and the sellers made their decision to reject the buyer's offer. I don’t think it’s the listing agent’s fault. Agents can offer real estate advice but that’s where they need to stop and let their buyers/sellers make their own decisions. I’m sure the listing agent provided advice to the sellers and the sellers made their decision to reject the buyer’s offer.

]]> By: Steve Crossland http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-275 Steve Crossland Fri, 01 Sep 2006 13:25:50 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-275 Hi Bill, > if the house is so out of shape, why would a buyer want to put full offer down? Even the nicest, prettiest homes can have defects and conditions that are not obvious upon casual walk-through. Buyers don't climb up on the roof before making offers, and they are not qualified to assess the condition anyway. Likewise, I've seen "rough" looking homes check out pretty good upon inspection. > I personally find this tactic unethical. There is nothing unethical about a party trying to negotiate for the best deal they can obtain. Any tactic or strategy is at the mercy of market conditions and the personality and motivation level of the person on the other side of the deal. Steve Hi Bill,

> if the house is so out of shape, why would a buyer want to put full offer down?

Even the nicest, prettiest homes can have defects and conditions that are not obvious upon casual walk-through. Buyers don’t climb up on the roof before making offers, and they are not qualified to assess the condition anyway.

Likewise, I’ve seen “rough” looking homes check out pretty good upon inspection.

> I personally find this tactic unethical.
There is nothing unethical about a party trying to negotiate for the best deal they can obtain. Any tactic or strategy is at the mercy of market conditions and the personality and motivation level of the person on the other side of the deal.
Steve

]]> By: bigmouth http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-274 bigmouth Fri, 01 Sep 2006 04:21:39 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-274 Ok, not all inspection negotiations were truly "urgent repair" things. I know for a fact that many buyers; agents are coaching their clients to bid high and then negotiate hard on inspections to get the price down (by either get a bunch of repairs or get the discount). I personally find this tactic unethical. Of course $$$ was almost never spelled ethically. I'd be very surprised if a seller is putting his house on the market with "above market value" and yet the house has a noticible leaking/bad roof. Also, if the house is so out of shape, why would a buyer want to put full offer down? That doesn't make logical sense. What's the most likely case here is that the seller thinks that his house is in generally good shape (although most resale homes have minor wear and tears here and there), and he thinks the inspector was nit picking. So, what really needs to be examed is exactly what was on the inspector's report. Are they really constitute repair/discount requests? Ok, not all inspection negotiations were truly “urgent repair” things. I know for a fact that many buyers; agents are coaching their clients to bid high and then negotiate hard on inspections to get the price down (by either get a bunch of repairs or get the discount). I personally find this tactic unethical. Of course $$$ was almost never spelled ethically.

I’d be very surprised if a seller is putting his house on the market with “above market value” and yet the house has a noticible leaking/bad roof. Also, if the house is so out of shape, why would a buyer want to put full offer down? That doesn’t make logical sense. What’s the most likely case here is that the seller thinks that his house is in generally good shape (although most resale homes have minor wear and tears here and there), and he thinks the inspector was nit picking. So, what really needs to be examed is exactly what was on the inspector’s report. Are they really constitute repair/discount requests?

]]> By: Steve Crossland http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-273 Steve Crossland Fri, 01 Sep 2006 01:49:15 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-273 Jim, I don't think it's always the agent's fault. Agents cannot always control what a client decides to do. We are there to make sure clients, be they buyers or sellers, have considered all the pros and cons of a particular decision, and to add perspective to the choices, but in the end it is the client who makes the decision, not the agent. Steve Jim,

I don’t think it’s always the agent’s fault. Agents cannot always control what a client decides to do. We are there to make sure clients, be they buyers or sellers, have considered all the pros and cons of a particular decision, and to add perspective to the choices, but in the end it is the client who makes the decision, not the agent.
Steve

]]> By: Jim http://crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-272 Jim Fri, 01 Sep 2006 00:11:21 +0000 http://ben.crosslandteam.com/blog/2006/08/31/when-should-an-inspection-kill-a-real-estate-deal/#comment-272 Oh but wait, the dumbest one of all is their listing agent. He should have told them exactly what you just said and advised to make the repairs. Now he doesn't get the commission, and his sellers will be left with a sour aftertaste if this home ever sells. The agents reputation suffers. It's subtle knowledge like this that makes a good agent. Oh but wait, the dumbest one of all is their listing agent. He should have told them exactly what you just said and advised to make the repairs. Now he doesn’t get the commission, and his sellers will be left with a sour aftertaste if this home ever sells. The agents reputation suffers. It’s subtle knowledge like this that makes a good agent.

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