Do you regularly take top-producing agents to lunch to promote programs such as MIC?

[Dan Bowers, CMI]

Last Week I was at a RE Seminar and heard a Long Time Top Listing Agent complain about how some things a home inspector found on one of his listings had just stopped the sale in its tracks.

I suggested he start getting PRE-LISTING inspections and find out UP FRONT about problems. His comments to me were along the lines of:

" I NEVER get PRE-LISTING inspections. To start with about 50% of the time, the buyer still gets a home inspection of their own, which means I gotta deal with 2 different home inspection reports. The 2nd inspector will ALWAYS have things he talks about that the 1st inspector didn't talk about AND vice-versa. So then I gotta deal with 2 different repair lists, etc."

He then went on to explain to about 6 other newer agents around him that IF they really got lucky and did NOT talk about home inspections SOMETIMES a buyer would not get an inspection at all. OR the buyer may choose a home inspector that was NEW or not real good SO might NOT talk about or find many DEFECTS. That way he and the seller don't have to deal with much. He then stated it was obviously in the agent and selers BEST interest to not PROMOTE home inspections at all, AND especially NEVER ever PUSH a PRE-LISTING inspection.

An appraiser listening to this opened up before I could, and went through most of what I would have said about the ADVANTAGES for a seller AND the RE Agent to getting their own PRE-LISTING inspection.

He mentioned stuff like ......

Homes with pre-listing inspections sold faster, sell for a higher price, and had fewer problems in escrow than other homes.

Why do they sell faster? Because it appears that the Realtor and seller have done everything they can to be forthright about the property. Wouldn't you like to do business with someone like that?

Why do they sell at a higher price? Because a pre-listing inspection provides a better time frame for the seller to make repairs. When he has to make them in a short time frame, such as an escrow, prices from service personnel can be higher, sometimes much higher. By getting 3 quotes on work and then providing those 3 quotes to the buyers. when a buyer comes along and finds all the preliminary work done, he's more likely to work with those kind of people. And since there is more disclosure, the time frame is shortened because the buyer will usually take one of those 3 quotes and move on with negotiations. Make sure the seller gets 3 quotes. Providing only 1 quote can indicate a soft, cheap, low-priced, low-quality professional OR repair in a buyers mind.


Why are there fewer problems during escrow? Because negotiations go more smoothly. In some cases, the seller can say, "Hey, I've done the legwork and gotten 3 quotes. As you can see from the MLS listing, I've already adjusted the price each time I got new information about repairs. Or he can say that he'll provide escrow credits or a lower price for the middle quotes.

Just all sorts of ways to market a PRE-LISTING inspection.

The RE Agent listened to the Appraiser - Then said BS / Just more work. Most of the newer agents around him nodded and moved on.

[Brian A. MacNeish]

Originally Posted by dbowers

why are there fewer problems during escrow? because negotiations go more smoothly. In some cases, the seller can say, "hey, i've done the legwork and gotten 3 quotes. As you can see from the mls listing, i've already adjusted the price each time i got new information about repairs. Or he can say that he'll provide escrow credits or a lower price for the middle quotes.

just all sorts of ways to market a pre-listing inspection.

the re agent listened to the appraiser - then said bs / just more work. Most of the newer agents around him nodded and moved on.

why would a home buyer trust any of the vendor's quotes? If it involves $$$$, trust no one!!

[Dan Bowers, CMI]

Brian -

I can get 1 cheesy contractors quote from my buddy Earl; BUT its lot harder to get 3 contractor quotes DOWNPLAYING problems.

Thats why 3 quotes.

[Gary Farnsworth]

Three quotes: Uncle Bob, Cousin Luke, and neighbor Dave.

It is also amazing that here in Kansas, some agents are using "contractors" such as these to "help" a home buyer make a home purchase decision.

Pre-sale inspections can be used by agents to "wake-up" home owners so they can help out with light home repairs, clean-ups, and price homes accordingly so they will sell. Agents are not getting it. They will, when an attorney calls.

[Eric C. Van De Ven]

Never have taken a Realtor anywhere.

[Joseph Hagarty, CMI]

Originally Posted by jlevy1

Are you saying that open houses are held to apease the client...or, maybe to fish for new clients?

Open Houses
are to fish for Buyers...