Are agents trying to force buyers out of getting inspections? I have been getting more and more clients telling me they have less and less numbers of days to get their inspection. Asking the clients when booking inspections how many day contingency they were given and im shocked to learn instead of the normal ten days its becoming eight, seven, and even now five days. Why the rush? Only thing i can think is that they’re rushing or even trying to blindside the buyers into not getting inspections.
Why in the world would a person whose entire income depends upon the decision of someone to buy a particular house that they are trying to sell want to interfere with anyone who might provide their client with a reason not to buy it? I think you might be blowing this totally out of proportion.
Since this is in the public domain, it is a great opportunity to warn the public against hiring anyone recommended to them by their real estate salesman. Home buyers should do their homework and research/find their own inspector by starting with inspectors who DO NOT appear on the list provided to them by anyone who stands to gain, financially, from the sale of the property. Inspectors who are dependent upon these referrals for their source of income or who feel that they could not bear the scrutiny might disagree with me…but that only solidifies my point.
Got this from a potential client just the other day;
Hi George
Thanks for your prompt response and information.
We did find an inspector based on our realtors’ previous experience
but we were not happy.
Many of the banks that own foreclosure properties are pushing the 5 day (not 5 business day) inspection period because they don’t want the potential buyer to know what the problems are. They are selling the houses “as is” and do not want to negotiate (penny wise and pound foolish). They believe that with a short inspection period the buyer will give up trying to get an inspection done and go through with the sale. I always do whatever I can for the buyer, even if I have to try and rearrange my schedule. Most clients who have a 10 day window are very understanding.
So you say its starts with the bank and not the agents?
Yes…but isn’t it the buyer and his agent who offer a contract to the seller to accept? Why would a buyer under the advice of his salesman not at least OFFER a 15 day inspection clause? If the bank refuses it and changes it to a 5 day inspection clause, the buyer will immediately recognize these intentions and run…not walk…from the deal?
I am seeing more of this scenario in my area as well. Being pushed down to as little as 5 days to obtain a home inspection.
5 days and sometimes even 10 days is not enough time if one takes into consideration of all the factors.
Several times I have had a client contact me that they had 10 days but after talking to the Agents inspector and searching for thier own replacement inspector they now only have 2 or 3 days left to complete the inspection.
Many property transactions take well over 1 month to complete.
Around here, the standard is 5 business days, with some for 7 days. It’s been that way for at least 9 years.
I have come across this issue here in KC. So bad that I wrote about it on my newsletter page on my web site. Some negotiating periods are down to hours, brought about by banks and lenders who own the homes, and are listed by them, and not RE companies. They do not want any interference into their transactions. I am sure RE’s get “incentives” to sell these homes quickly. States should be investigating this practice.
Time for an inspection article. Anyone buying a home “as is”, vacant, especially from a bank or a FSBO, should get an inspection. IMHO, it should be required in every state.
most of my agents push them to have an insp…just today I got a call from an agent wanting an hi on his own home he was buying. just my 2 cents
“My agents” is a very interesting phrase for an inspector to use, IMO. Does it mean the same thing as when a used house salesman refers to his or her inspector?
Last summer, I lost count of the number of calls I received to schedule inspections from people who commented as to how their salesman provided them a list of names and were calling me because I was NOT on it.
At any rate, when they (or someone they care about) are buying a home even the most crooked agent will call for a home inspection simply to save his own skin. Nothing new about that.
Whats the problem? Find a way to fit them in within the 5 days. I then email the report and advise the buyer to PLEASE send the report to the listing agent and then refer to a page, like page 41. Once they open the report you then notify them that if you should decide to walk away from the deal they have now opened the report and are legally liable to disclose all that information to the next potential buyer.
Nowadays a ton of buyers are getting money off their FORECLOSED property by submitting an inspection report with a justification as to why they are lowering their bid. Many times it works, more often now than before. There is no such thing as “As is”. its all negotiable.