The home inspection report is a very useful document, provided that it is carefully read, understood and implemented. I’d have to say that in my experience, the report is most often used by the buyer’s agent to fill out the request for repairs. I personally feel that this practice is alright provided that the agent does their due diligence. What I mean by that is the agent needs to word their request so that the needs of the buyer are properly met while limiting their own liability.
The inspection report is not set up as a request for repairs. Its intended purpose is to make the buyer aware of the condition of the house and what kind of repairs might be needed in both the short and long term before they own the house. Should the buyer ask the seller to make repairs during the escrow period, good for them.
Real Estate Agents need to be careful how they use the report in their repair requests. Some of the more common issues that I see arise from these requests are the requested repairs are poorly performed if at all. This puts the agent in a sticky situation – usually the day before closing.
Now I’m not a lawyer and I don’t play one on TV. So the best advice I can give to an agent is to speak with your lawyer and/or broker about how best to protect yourself with regards to the repair requests. However, I find that agents who make specific requests such as who is to perform the work and have them provide receipts for the repairs have fewer problems.
Also, a home inspection and report is limited in nature. Other conditions may exist that are in need of repair and fall outside the scope of the inspection. By having a professional contractor further evaluate the problems, they can identify and repair any items not covered in the inspection. Uncle Billy is just not qualified to make these kind of repairs. After all, the seller just wants to get out of the house and move on the the next one. Often times, they don’t care if the repairs are properly performed or not. This can put the agent in a sticky situation after the house has closed.
Home inspection reports, by their nature, do not outline how the repairs are to be made and can be vague regarding the specific work to be done. Agents that make assumptions about the repairs are asking to pay for part of the repairs out of their pocket. For example, if the report has 3 pictures of broken roof tiles, and the agent assumes that their are only 3 broken tiles and they ask for 3 broken tiles to be repaired, the agent may be paying for the repair of all of the broken roof tiles with exception of the 3 that were requested.
It is important to understand that the request for repairs is an addendum to the purchase contract and should be treated as part of the contract. What I am trying to say is that wording counts and can be held against you.
I am fully aware that the inspection can be the most difficult part of the transaction. But with good communication between the buyer, agent and the inspector, many problems can be avoided.
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