What can an agent do if buyer waives home inspection?

By
Real Estate Agent with RE/MAX Centre Realtors

I always encourage buyers to have a home inspection. Even if it is an AS IS sale I tell them that they can find out about all the material defects an can determine if they want to buy the house. I also tell them to get the radon test. A radon test costs about $125 in my area but if there is radon , the mitigation has cost about $1000 on average on the homes that I have sold.. I do not know if other homes will cost more.

If I am the buyer agent, I have them initial  our State approved agreement that says they waived the inspection and provide them information as to why they should have the inspection. When I show them the house for second showing if I see something that does not look right I advice them again to get an inspection .I tell them I do not know anything about an inspectors job and they should ask experts if they have questions. Even if I know the answer I do not advice on things that are beyond the scope of my job as a real estate agent.

If I am a seller agent and a buyer wants to make an offer and waives the home inspection I will make certain that all known defects are pointed out in the seller disclosure and actually go through the house with seller and ask questions and if I see something that should be mentioned I will request that it be mentioned.

This will protect the seller if the buyer comes back later  at walk through and points to something and says that it is a new defect that was not present when they made an offer.

A home inspection protects the BUYER and the SELLER.

I have heard of buyers holding up settlement because they discovered something at walk through. I am glad it did not happen to my clients but I learn from experiences of other agents and it has helped me . This happened recently to a friend of mine and prompted me to write this post.

A home inspector takes pictures during the inspection and these too can be used to determine whether a problem is something that happened after the agreement was accepted. The agreement of sale requires the home to be in same condition except for normal wear and tear and for things that seller agreed to repair to be repaired or replaced.

When a buyer waives the inspection it is not good for buyer. seller or agents. I would rather lose the sale than sell a home and find out the buyer client regrets not doing the inspection or the buyer blaming my seller clients for defects which should have been found by the inspector if they had the inspection.

 

Posted by

When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

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Show All Comments
Rainmaker
1,090,516
Ginny Gorman
Phillips Post Road Realty ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Gita, interesting to my mind as representing the seller if the buyer waives inspection in this state it is 'buyer beware' and it is the duty of the buyers agent to do due diligence.  I have had 1 buyer that did bring up a deficient condition at closing (issue happened 2 days prior to closing)...closing took 3 hours and the listing agent contributed part of his commission to the buyer to get the deal closed...can be dicey.

Feb 28, 2013 04:19 AM #1
Rainmaker
1,644,031
Captain Wayne Rowlett / Florida Real Estate School
REcampus Fully Accredited Florida ONLINE & Classroom Training in Destin, Pensacola Florida - Panama City Beach, FL
Instructor / Owner of Rowlett Real Estate School

Well said Gita.  I'm with you on this one.  A home inspection is very important for many reasons.  I've never had a customer refuse one.

Feb 28, 2013 04:22 AM #2
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Ginny, Buyers said that it was not in sellers disclosure and it was an obvious defect that could be seen. I do not know what would have happened if they postponed closing at last minute at the table. They would have to get attorneys . I guess it depends on state laws.

Feb 28, 2013 04:24 AM #3
Rainmaker
1,485,903
Lawrence "Larry" & Sheila Agranoff. Call 631-805-4400 (c)
Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY
Long Island Condo & Home Sale Specialists
We suggest our clients to have one but never force them. Interesting that you have a state form for them to sign waiving the inspection. We don't have that here...
Feb 28, 2013 04:26 AM #4
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Wayne, we have to convince buyers to get a home inspection.

Feb 28, 2013 04:26 AM #5
Rainer
50,291
James Brown
KWRC - Ellicott City, MD

Thanks for the article. I just assisted with my first "as is" property and we have scheduled a home inspection.  It is an estate sale and the property was bought in 1963.  The house looks great but like all the iceberg photos we see, my buyer was concerned about hidden problems.  So we wrote into the offer  an "as is" home inspection contingency.  Great for us.  We get to explore this gem on March 5th. 

Feb 28, 2013 04:28 AM #6
Rainer
168,541
Richard Burge
Coldwell Banker Sloane Realty - Sunset Beach, NC
ABR - Property Manager - Notary

If you represent the buyers and they do not want a home inspection you need to have them sign a waiver of such service.   Home inspection, mold, survey, radon, erosion, termite,  whatever you as their agent think they should have to protect them in the deal. 

Feb 28, 2013 04:30 AM #7
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Larry and Sheila, The agreement of sale is designed where they initial whether they are getting the inspection or not.

Feb 28, 2013 04:30 AM #8
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

James, Good luck.

Richard, I agree.

Feb 28, 2013 04:31 AM #9
Rainmaker
1,664,550
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Gita,

We have a state form also for a buyer to sign if they are going to waive inspections. We always recommend the buyer to get an inspection..if they choose not to they will sign off ....which reduces our liability.

Feb 28, 2013 04:36 AM #10
Rainmaker
2,003,995
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Good information for prospective home buyers.  We always try to convince purchasers to have a professional home inspection.  Our experience is that most of the local investors do not opt for a home inspection.

Feb 28, 2013 04:38 AM #11
Rainmaker
1,871,015
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Gita, excellent information.  Though I'm not sure how much protection a buyer who waives inspections will ultimately receive if issues come up.

Feb 28, 2013 04:41 AM #12
Rainmaker
2,026,034
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"New Franklin MA Homes"

Good morning, Gita.... I've had this situation in the past and I had language in the purchase and sales agreement that covered the seller and the listing agent from any repercussions later.... it was spelled out in detail.

Feb 28, 2013 05:09 AM #13
Rainmaker
604,273
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

This is great advice Gita.  The only time I don't make a huge deal about an inspection is when the buyer is a contractor that is buying the house to "flip" and has already gone through the house carefully.  Otherwise no one should skip this vital step!

Feb 28, 2013 05:22 AM #14
Rainmaker
172,345
Joan Congilose
RE/MAX Central (732)232-5277 - Manalapan, NJ
CRS, CDPE, Top Producer Marlboro, Manalapan Homes

Hi Gita I always encourage a home inspection , even if it is an as is sale. If the buyers still don't want to spend the money on a home inspection I always make sure to document their decision and  notify all parties thet they have  waived their right to an inspection: lawyers, realtors, sellers.  

Feb 28, 2013 05:34 AM #15
Rainmaker
1,389,048
Andrew Mooers
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Show me the house fax. How does anyone ever totally know what is lurking, if the place is haunted, etc until after the test ride ends. And they own the sticks and bricks.

Feb 28, 2013 05:41 AM #16
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Dorie, Good idea.

Roy. Investors usually have experience and know what they are getting into.

Gabe, I have heard of them saying the seller should have disclosed.

Barbara, I love the idea of having the language in the purchase agreement to protect the seller.

Joy, Contractors usually know about the defects. That is the reason some buy these houses so they can save money by fixing it themselves.

Joan, good idea to notify all parties.

Andrew. I do not know how they can inspect to find out if it is haunted!

Feb 28, 2013 06:28 AM #17
Rainmaker
608,991
Patricia Feager, MBA, GRI, Cert Negotiations Expert, Military Relo Prof
Keller Williams Realty - Flower Mound, TX
The Little REALTOR® That Could

Gita,

TX also has a waiver form.

You are always doing what's best for your clients in PA!

Buyers should be proud to work with you.

Feb 28, 2013 09:26 AM #18
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Patricia, Thank you.

Feb 28, 2013 11:27 AM #19
Rainmaker
692,546
Clint Mckie
Desert Sun Home, commercial Inspections - Carlsbad, NM
Desert Sun Home, Comm. Inspection 1-575-706-5586

Hi Gita,

Congrats on the Featured post.

There are still a lot of Realtors here in Carlsbad that still get a "WAIVER" signed by the buyer. Just to find out things down the road. The buyers are relying heavily on the word of the Realtors. The Realtors tell the buyer  things like "it's a very good home" or

"there was an inspection a couple months ago and there was nothing found"

Or, "I know the sellers and if there was anything that should have been in the disclosure it would be in there"

I have heard all kinds of things from a buyer who was talked into signing a waiver. I am involved in a lawsuit now that was just the case.

ALWAYS get a home inspection no matter what.

Have a very good day in Bucks County, Pa.

Best, Clint McKie

Mar 01, 2013 05:00 AM #20
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Clint, Thanks for the comments . The post is not featured but I am glad many people have read it,

Mar 01, 2013 05:05 AM #21
Ambassador
672,676
Karen Crowson
Alain Pinel Realtors, Pleasanton, CA - Livermore, CA
Livermore Wine Country Homes
That 'buyer beware' phrase is central to this discussion. If buyers are not setting aside money for inspections upfront, they could be making a huge mistake. I can see why contractors may forego this step, but not your average buyer.
Mar 01, 2013 05:16 AM #22
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Karen, I agree.

Mar 01, 2013 05:19 AM #23
Rainer
39,995
Allen Deaver
Sky Realty - Kyle, TX
Allen Deaver

Gita I always recomend my buyer clients get a home inspection. Even with a new built. But in Texas we do have a state approved form for waiving that right. If the buyer waives their right to an inspection after signing the form it is not the respondsibility of the buyers agent.

Mar 01, 2013 05:21 AM #24
Rainmaker
144,844
Marshall Brown
Mid America Inspection Services, LLC - Fargo, ND
BSEE, CHI

Gita, I really hope your feelings on this issue are contagious! This could be a truly benificial epidermic for all concerned in real estate transactions.

PS: Check again, it looks like you ARE featured.

Mid-America Inspection Services, serving Fargo and West Fargo, North Dakota, Moorhead, Alexandria, Fergus Falls, Detroit Lakes, Wadena and the Minnesota Lakes Region

 218-443-3555, 320-846-0004, 218-287-0877, 218-841-0444

midamericainspections@gmail.com

www.midamericainspection.com

Mar 01, 2013 05:22 AM #25
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Allen, I am glad they have the form.

Mar 01, 2013 05:22 AM #26
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Marshall, Thank you. I will check it.

Mar 01, 2013 05:23 AM #27
Rainmaker
260,548
Mike & Eve Alexander
Buyers Broker of Florida - Windermere, FL
Exclusively Representing ONLY Orlando Home Buyers

I cannot remember a single time that my buyer decided not to get a home inspection...but occasionally they will try to cut corners on getting a survey or something like that.

In that case, I send them an e-mail with my "professional opinion"  asking them to re-confirm that they are relying on their own expertise and choose not to do the test or whatever it is.

Then I print out their response and put in their file.

Talking to them and what you say, will mean NOTHING in court.  If there is some verbage buried in the contract, I do not consider that good enough, because  if you are indeed representing the buyer than you need to aditionally point it out to them and not ASSUME that they read it, or understand the pitfalls.

Get it in writing!

Eve in Orlando

Mar 01, 2013 05:23 AM #28
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Eve, thanks for the tip to email them and get the response in writing.

Mar 01, 2013 05:25 AM #29
Rainmaker
313,173
Frank Laisch
Stewart Title Company - Tampa, FL
"The Insurance Guy"

Gita, Great post! having the waiver form signed is so important if the buyers are waiving the home inspection. It can protect the agent in the long run.

Mar 01, 2013 05:33 AM #30
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Frank, The buyers will hopefully reconsider when they read the waiver information.

Mar 01, 2013 05:35 AM #31
Anonymous
Anonymous
Anonymous

Great advise. It's best for the buyers to get the home inspection, but unfortunately some choose not to. The waiver at least offers some protection.

Mar 01, 2013 05:42 AM #32
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Gary, We should do our best to get them to do the inspection.

Mar 01, 2013 05:44 AM #33
Rainer
12,550
Emmanuel Scanlan
PS Inspection & Property Services LLC - Josephine, TX

Hello Gita,

If I can make a suggestion that might help?  Choose a well written inspection report from a very detailed inspection of a previous home you have dealt with that was supposedly a gem or very good property but after the inspection it was learned to be different.  Contact the Home Inspector and ask them to sanitize the personal information and any necessary photos to protect the current owners of the home.  Create a home inspection information package to include the report, the listing information (sanitized as well), a copy of the home inspection waiver form or clause explaining it too, and either your written article or one from another source explaining the importance of a home inspection.  Provide that to your client when you sign them on and make a point to review it as well as the remainder of your agreement, operational details, etc.  Have the client sign they received that home inspection package along with the agreement paperwork.

With this information the client can see first hand just how important a home inspection can be.  If they choose to still waive the home inspection then you have done everything you possibly can to ensure they understand the importance of a home inspection.  From there it is completely up to them, and you are also well covered in that area if the client has any issues afterward as a result of waiving their rights.

 

 

 

Mar 01, 2013 05:48 AM #34
Rainmaker
524,503
Pat & Wayne Harriman
Harriman Real Estate, LLC (203) 672-4499 - Wallingford, CT
Broker/Owners, Wallingford CT Real Estate

We do everything we can to get a buyer to do an inspection. If they opt not to do one, we explain that they do so at their own risk. We had a buyer not do an inspection and later during remodeling found extensive termite damage. An inspection would have discovered this and may have saved him thousands of dollars. It was hard not to tell him, 'We told you so".

Mar 01, 2013 05:54 AM #35
Rainmaker
575,211
Valerie Zinger
House Proud Ottawa-Ontario-Canada - Ottawa, ON
Home Organizer

Gita:  It would be false to expect an inspector to find every fault with a home (they can't take down drywall) but....  a good inspector teaches the Buyer about the care and maintenance of the home at the same time as looking for problems along with the good.  

Mar 01, 2013 06:04 AM #36
Rainer
182,680
John Dotson
Preferred Properties of Highlands, Inc. - Highlands, NC - Highlands, NC
The experience to get you to the other side!

Gita, sounds like you have all your bases covered.

In North Carolina we have a due diligence period which allows the potential buyer to have every inspection imaginable.  Prior to the end of Due Diligence they can get out for any reason, or no reason.  Once that runs out they are pretty much stuck.

If my folks refuse a home inspection I tell them they better have an iron stomach.

As Eve indicated, document it all!!!

Mar 01, 2013 06:09 AM #37
Rainmaker
17,229
Jay Cooke
Coldwell Banker Previews International - Greenwich, CT
People Always Come First

Howdy,

Like others, I have never had a client who hasn't done an inspection.  On occasion however, during an inspection, the offer has been terminated along with the rest of the inspection!  Coldwell Banker has a form that if used should the buyer opt not to do inspections.  If you have such a buyer and don't have a company form, reach out to your board or association.  This is another important part of your paper trail.

Mar 01, 2013 06:36 AM #38
Rainmaker
109,506
Rafi Footerman
Mid Jersey Inspections - Edison, NJ
Home Inspector, Mold Inspector, Radon and More!

I think you are doing all you should and have the perfect outlook to properly serve your clients.  Very few buyers waive the inspection in this area.  If fact, some still have inspections when they plan major renovations or even tear downs.

Mar 01, 2013 06:43 AM #39
Rainmaker
66,172
Andrea Curtis United Country Premier Properties Certified Military Relocation Professional
United CountryPremier Properties - Fort Hood, TX
Certified Military Residential Specialist

I tell them a lot of what the inspector does and why they should get the inspection.  BUT if they still refuse I will have them sign a waiver which states they are not having an inspection done against my advice.

Mar 01, 2013 06:48 AM #40
Rainer
124,748
Ron Aguilar
Real Estate Buying Advice - Salt Lake City, UT
Mortgage & Real Estate Advisor since 1995

Gita, thanks for the post, good information from everyone

Mar 01, 2013 07:10 AM #41
Rainmaker
387,802
Diane M. Phillips
Frankly Real Estate Inc. - Manchester, MD
Realtor 443-286-4365

Gita ~ Documenting that they made the choice is the only way to go.

Mar 01, 2013 07:23 AM #42
Rainer
55,208
Theresa Akin
CORPUS CHRISTI REALTY GROUP - Corpus Christi, TX

I totally agree with you. Even if the seller is acquainted in any way shape or form,i.e. relative, neighbor, co-worker and always ask if there is a sellers disclosure so the buyer knows exactly what they're up against. If the buyer still insists on no inspection, I have them sign a waiver. I have suggested to the buyer often to atleast get a free estimate on the foundation. If it's free why not.Often they go ahead and pay for the inspection. I retrieve all information I can about the property, such as windstorm insurance, permits that may have applied for and approved or not. 95% of the time after gathering this information, they will go ahead with an inspection. One buyer backed out when the seller found out he was going to have an inspection. They worked with each other and the seller said to the buyer, "I've told you what there is to know about the house." Just didn't tell him the 800 sf add-on wasn't permitted. My buyer went onto another house and had an inspector already lined up. We closed on that one. All kinds of paperwork provided. The prior house belonging to theco-worker burned because of improper wiring to the add-on.

Mar 01, 2013 07:39 AM #43
Rainer
18,742
Matt Keough, New Castle County, DE
Patterson-Schwartz Real Estate - Wilmington, DE
Matt Keough Agent New Castle County Delaware

I have them agree to the home inspection prior to making the offer.  If they elect to waive the home inspection, we have a waiver form that they must sign, which points out the importance of the home inspection, the major pitfalls, etc....

I strongly suggest to potential sellers to have a home inspection and fix everything that comes up, that way they have a comfort feeling when negotiating the sales agreement that they will not be making additional price reduction or paying for work to be done.  It makes everything a little easier.

It is best for eveyone to cover themselves.

Mar 01, 2013 07:42 AM #44
Rainmaker
184,362
Barbara Le Pine
S & W Real Estate, serving Lincoln County - Newport, OR
S & W Real Estate, Newport OR

I agree with Matt, #44 - No home inspection, therefore no pest and dryrot report to give to the buyers lender when they ask for it, no way to effectively refer to professional inspection report to ask seller for repairs upfront which may be lender required repairs later in the transaction. The only time to waive inspection is a contractor buying house with cash and they have inspected it themselves.

Mar 01, 2013 08:38 AM #45
Rainmaker
244,077
Michele Connors
The Overton Group, LLC & CB First Realty - Greenville, NC
Your Eastern North Carolina Realtor

worth  repetition... get a policy in your office to get this type of thing in writing, a waiver form is very worth while your file and to reiterate taht you did in deed suggest one and it was their sole decision to waive one.

Mar 01, 2013 08:45 AM #46
Anonymous
Anonymous
Anonymous

Thanks for sharing Gita.  I had a couple buyers who did not want to have inspections done and I was really worried about it.  I did exactly what Mike & Eve (#28) did by getting in writing that I recommended a home inspection be done and the buyer waived their right to do so.  The last thing you want is something to happen after the fact and have your client come after you.  CYA.

Mar 01, 2013 10:06 AM #47
Rainmaker
297,472
Michael J. O'Connor
Diamond Ridge Realty - Corona, CA
Eastvale - 951-847-4883

In our California state forms there is a true GEM of a form called a "Buyers Inspection Elections" form with 31 types of inspection services available ranging from Asbestos to Zoning.  The buyer checks each box (Yes or No) indicating that they understand an inspection service is both available and recommended by the brokers involved.  

Mar 01, 2013 10:56 AM #48
Rainmaker
59,889
Sharon Sanchez
Ace Home Realty - Carson, CA
Your Number "1" Source For Real Estate.

When a buyer wants to waive their inspection, I always have them sign an Inspection Waiver Form.  Unfortunately after they move in and things begin to break down, they always wants to blame the seller or the agent.  When that happens, I refer them back to that signed inspection wavier form.

Mar 01, 2013 11:38 AM #49
Rainer
5,884
Dan Cvelbar
HouseMaster Home Inspections - Murrieta, CA

Hi Gita,

You may want to share some real life stories with your buyers (and sellers).  I'm sure your local home inspectors can fill you in on items that may be of particular concern in your area.  Just two weeks ago in Southern California, I came across a furnance that was the subject of a recall about twenty years ago.  The system was still functional -- but this model has been responsible for over 50 house fires in California. 

A good home inspector will likely find areas of concern that most others are not going to be aware of. 

Mar 01, 2013 01:24 PM #50
Rainmaker
1,264,048
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

We have several disclosures that would cover this issue and most that refuse sign off several times on it.

Mar 01, 2013 01:27 PM #51
Rainmaker
369,568
Nina Hollander
RE/MAX Executive Realty/Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

You can take that horse to water, but you can't make it drink! Fortunately, I don't often encounter someone who won't do an inspection, especially once I've explained why it's important (same with surveys). But if they choose in the end not to do so, I also have them sign a document that shows I discussed it with them, made them aware that the service is available and that they declined it. You want that protection if they come back at you one day and insist you never told them about having an inspection.

Mar 01, 2013 02:50 PM #52
Rainmaker
319,465
BILL CHERRY
William S. Cherry & No Co., Wealth Coach - Dallas, TX
William S. Cherry & No Co., Wealth Coach

Obviously you can't force a client to get a home inspection.  But there is a problem with this that affects you.  Home inspections by licensed inspectors was invented to protect Realtors from being accused of knowing a property had structural and mechanical issues but didn't reveal them to his client.

I never had a client refuse a home inspection.

That being the case, if I ever had/have I would call my Errors and Omissions carrier and ask what they suggested since they are the ones who will be at risk.  Perhaps they have a disclosure/hold harmless form that, signed, woulr protect the agent and them as the insurer.

Nevertheless, if they do or don't, you at least put them on notice, and if they didn't react and a suit were later filed, they couldn't legitimately put the blame on you.<!--[if gte mso 9]><xml> <w:WordDocument> <w:View>Normal</w:View> <w:Zoom>0</w:Zoom> <w:TrackMoves/> <w:TrackFormatting/> <w:PunctuationKerning/> <w:ValidateAgainstSchemas/> <w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid> <w:IgnoreMixedContent>false</w:IgnoreMixedContent> <w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText> <w:DoNotPromoteQF/> <w:LidThemeOther>EN-US</w:LidThemeOther> <w:LidThemeAsian>X-NONE</w:LidThemeAsian> <w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript> <w:Compatibility> <w:BreakWrappedTables/> <w:SnapToGridInCell/> <w:WrapTextWithPunct/> <w:UseAsianBreakRules/> <w:DontGrowAutofit/> <w:SplitPgBreakAndParaMark/> <w:DontVertAlignCellWithSp/> <w:DontBreakConstrainedForcedTables/> <w:DontVertAlignInTxbx/> <w:Word11KerningPairs/> <w:CachedColBalance/> </w:Compatibility> <w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel> <m:mathPr> <m:mathFont m:val="Cambria Math"/> <m:brkBin m:val="before"/> <m:brkBinSub m:val="--"/> <m:smallFrac m:val="off"/> <m:dispDef/> <m:lMargin m:val="0"/> <m:rMargin m:val="0"/> <m:defJc m:val="centerGroup"/> <m:wrapIndent m:val="1440"/> <m:intLim m:val="subSup"/> <m:naryLim m:val="undOvr"/> </m:mathPr></w:WordDocument> </xml><![endif]-->

 

Mar 01, 2013 02:56 PM #53
Rainmaker
164,740
Elisa Uribe Realtor #01427070
Wells and Bennett Realtors - Oakland, CA
California Homes for Sale in the East Bay

I agree, never a good idea for a buyer to waive their right to a home inspection. I like the idea of referencing photos from the home inspection. Nice post.

Mar 01, 2013 03:34 PM #54
Rainmaker
824,250
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
your real estate writer

Home inspections were just coming into use when I let my license go away, so we didn't have many of them. But I'll always remember Janice.

She had an inspection on thefirst home she purchased through me. Unfortunately, the inspector noted that the attic fan was in working order - when there was NO attic fan. (And judging from the decidedly unladylike language she used when attacking the listing agent, the attic fan was was important to her.)

So - since the inspector on the first house had been "incompetent," she decided not to have an inspection on the next house. She did it herself. The problems she discovered after the purchase ranged from carpenter ants in the attic to a light fixture over the kitchen range that had never been connected to the panel box, to a heating system that just plain didn't work!

Yes - get an inspection! (But get references.)

Mar 01, 2013 07:13 PM #55
Rainmaker
276,537
Travis "the SOLD man" Parker; Associate Broker
Team Linda Simmons, Enterprise, AL 36330 - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

As many have pointed out, document - document - document that they have been offered and encouraged to have an Inspection, but have refused! CYA

Alabama is still a Buyer Beware State, but, I don't take chances! Even a Dismissed Lawsuit can cost $$ and much bad publicity in a small town.

Mar 01, 2013 07:34 PM #56
Rainmaker
712,253
Sharon Parisi
Keller Williams Dallas Premier Realty - Dallas, TX
Dallas Homes

It is definitely important to have the buyer document that he waived the inspection.  I have them sign two documents acknowledging that they are waiving an inspection.

Mar 01, 2013 10:29 PM #57
Rainmaker
485,840
Karen Rice
WEICHERT, REALTORS® Paupack Group - Hawley, PA
Northeast PA & Lake Wallenpaupack Home Sales

This happened with one of my listings. The buyer waived all inspections, then a few weeks after closing he started whining about this that or the other thing.  If he had been my client, I would have had him sign a waiver that he was strongly advised to have a home inspection and that he declined.  We do have it occasionally but it is rare.

Mar 01, 2013 11:55 PM #58
Rainmaker
271,221
Paddy Deighan JD PhD
Aston McLaren Inc - Vail, CO
Paddy Deighan J.D. Ph.D

perhaps relay to the buyers some stories about how a buyer was really saved by getting an inspection...especially on an older home

Mar 02, 2013 12:08 AM #59
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Emmanuel, I love the idea . Thank you.

Pat and Wayne, They will learn from this experience.

Valerie, Most inspectors will point out things that may need to be addressed by an expert.

John, The due diligence period is important. I tell my clients time is of the essence and point out to the clause.

Jay, Our agreement of sale requires buyers to initial where it says they waive the inspection.

Rafi, It is a good idea to have inspections.

Mar 02, 2013 04:55 AM #60
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Ron, Thank you.

Diane, I agree.

Theresa, You are a good agent . Thanks for the tip about getting a free foundation inspection.

Matt, Thanks for the tip to have the seller have a home inspection.

Mar 02, 2013 04:59 AM #61
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Barbara, Contractors and builders may sometimes as much  about homes as some inspectors.

Michele, I agree.

Tim, It is always good to get it in writing.

Mar 02, 2013 05:02 AM #62
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Michael, We too have it built into the agreement but I do not think we have 31 items.

Sharon, When things go wrong they always want to blame someone.

Mar 02, 2013 05:04 AM #63
Rainmaker
636,709
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Gita, we have a standard waiver we make them buyers sign.

Mar 02, 2013 08:10 AM #64
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Bob, That is a good thing to have.

Mar 02, 2013 11:50 AM #65
Rainmaker
383,500
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

Gita  One story I like to tell is an investor wanted to buy a foreclosure.  On my advice I suggested the house would need new windows, paint, roof was questionable...but let's hire an inspector.  The inspector "red flagged" saying it would be cheaper to tear it down than fix all the problems.  My client thinks the inspector and I walk on water.  Lost the sale but still have my client!  Works for me every time.  Great blog

Mar 02, 2013 01:51 PM #66
Rainmaker
209,825
Jackie Hawley
ReMax Encore - Clarkston, MI
Southeast Michigan Real Estate

The home inspection is a contingency to an offer to purchase. From the listing side, the less contingencies the more flexible my sellers tend to be with price. Strongly suggesting a home inspection is more of a CYA for the agent than necessarily working in the best interest of the buyer. Otherwise we would be recommending an electrician, a plumber, a roofer, a heating and cooling person, a structural engineer, a pest inspector, a septic person and a private lab to test the water. Oh- and a radon (the computer type, not the packet that hangs in the basement for a couple days and you don't know if the seller moved it outside for most of that time), and a lead paint inspection. Maybe some soil samples in the yard- never know what that property was used for 50 or 75 years ago. THAT would really be looking out for the best interest of the buyers - if they could afford it.

Not all buyers are alike. Some know more about building and maintaining houses than many general home inspectors. Some will benefit from having a general home inspection. With the low inventory we are experiencing, a home inspection contingency could cost someone the house they really wanted. And I've rarely run across any unexpected problems during a home inspection. My buyers and I tend to go through anything they will write on quite thoroughly before making an offer. I don't hold myself out to be a home inspector or builder, but part of an agents job is to point out potential issues. It doesn't take a builder's licence to see water marks 2 feet up a basement wall.

Mar 03, 2013 12:13 PM #67
Rainmaker
1,918,875
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Joh, Thanks for sharing.

Jackie, I once pointed out stains on the ceiling to my buyers and the listing agent asked me , " Are you a home inspector ? '

Mar 04, 2013 06:13 AM #68
Rainmaker
575,211
Valerie Zinger
House Proud Ottawa-Ontario-Canada - Ottawa, ON
Home Organizer
Gita. I see why this is one of your February favs. My advice is to get the buyer to sign a waiver or underline and initial on the agreement that they knew to have a home inspection and decided not to do it.
Mar 22, 2013 03:46 AM #69
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Rainmaker
1,918,875

Gita Bantwal

REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
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