It happens during every inspection. The buyer will ask me if the seller "has to" repair a particular item or they will ask which items they should ask the seller to repair. Repair negotiations are, of course, the responsibility of the buyer's agent. The agent, however, is not supposed to be making value judgments in regard to repairs. It therefore falls to the inspector to give every buyer some level of guidance as to how to set priorities among all of the items found.

I first advise buyers that much of the repair negotiation process rest on the seller's attitude towards the process. If the seller believes he "took a bath" or is financially stressed, he may have a little interest in conducting repairs. At the other end of the spectrum is the seller that thinks he did well during initial negotiations or earnestly wants to leave the home in a tidy manner. The normal scenario tends to be somewhere in the middle of these extremes.

To prepare for repair negotiations you need to accept two facts. First, a seller will not repair the entire list. The simple explanation that I use is that you have to accept that there is a normal level of wear and tear on any home. Secondly, the buyer must make a serious decision about what he is unwilling to accept and what he can do himself. Homeownership is a responsibility; it comes with an obligation to conduct upkeep. Items found by the inspector that fall into the normal upkeep category are poor choices for repair negotiations.

Finally, consideration must be given to the buyer's personal situation. Factor in buyer skill set, the age of the new occupants and any mobility issues with the new occupants.

Priorities 1 through 3 can routinely become part of a negotiating process, while 4 and 5 normally do not. This is what I give to my buyers:

Priority 1: Safety

Repair any item that can be construed as harmful if not fixed. Opinions on what is a safety issue will vary. Good examples include GFCI repair or the replacement of a copper gas line.

Priority 2: Structure

Repair any item, which causes a weakening of the structure or opens the structure up to environmental damage. Rotted wood, plumbing leaks or ineffective flashing.

Priority 3. Mechanicals

Repair any mechanical or appliance needed for home comfort or functionality. AC or heat, which is not working.

Priority 4. Routine Repairs

Items that are part of a normal maintenance program but need attention now. Caulk repair around windows, trimming vegetation.

Priority 5. Cosmetic issues

Interior paint and flooring may be addressed in certain conditions. Pet damaged carpet can generate a reasonable repair demand.

Good luck and happy house hunting. For more information about my services in the Houston, Texas area, please visit my website: www.texasinspectionpartners.com

The critical question is "when was the problem detectable? The buyer must start with an honest assessment of this simple question. Unfortunately my own experience is that a certain population of clients expects the inspector to be clairvoyant. They will not say it, but if you read between the lines, that is what they believe.

Unfortunately some buyers do not fully grasp two ideas. First, a home inspector is a generalist, not a discipline expert. He possesses a narrow amount of knowledge on a broad group of subjects. The electrician and plumber, on the other hand, posses a broad amount of knowledge on a narrow range of subjects. The second misunderstanding is that home inspectors have special knowledge that allows them to determine conditions and situations that are not visually apparent. In other words, we can predict what is going to happen. Obviously we can all predict that unpainted wood in Houston will rot, but who knows when the dishwasher is going to die?

So what can you tell a client that is displeased? There are really three answers depending on how we phrase the question:

"What happens if it is after closing and the inspection didn't show certain defects that have appeared? What recourse do I have?" If a defect is not visible to anyone at the time of inspection and appears later there is no recourse. TREC rules hold that an inspection should reveal "visually apparent" defects. TREC and common sense tells us that we cannot see through walls and predict the future. The classic example of this type of problem is the failure of an appliance after the inspection. This is why we have home warranties. When this happens with one of my clients I try to act as an advisor and help them solve the problem as well and as inexpensively as possible. It is absolutely critical for a home buyer to understand that no home inspection or home warranty can eliminate 100% of their risk.

"What happens if it is after closing and the inspection didn't show certain defects that the inspector missed? What recourse do I have?" Unfortunately, this happens. With a competent inspector it is far less common than people think. This is the reason why TREC requires an inspector to carry insurance. My first advice is to call the inspector. If a problem was demonstrably visible at the time of inspection and not indicated on the report, a good inspector will help solve the problem. A return of fee or payment for repairs may be in order. If the inspector missed something that is required by TREC and will not talk to you, you may have to take more aggressive action.

"What happens if it is after closing and the inspection didn't show certain defects that later appear and it looks like they were hidden from me? What recourse do I have?" This is pretty rare, but it has happened to me. If a new homeowner finds what appears to be covered up damage or sloppy repairs that were not disclosed and were hidden by strategically placed boxes or furniture there may have been an effort to mislead. The state disclosure law is pretty clear. Under certain conditions, this could be called "fraud". The home buyer should approach the seller to assist making things right. If that does not work, more aggressive measures may be needed. Remember, this is one reason why many agents are uncomfortable with seller's conducting repairs. Even if a seller makes a good faith effort to do or have the job done correctly, he can be accused of other motivations later.

And the final answer is: Work with a competent home inspector with a reputation for service and quality. These questions are most commonly asked by clients that select cheep and inexperienced inspectors. I hate saying this, but you get what you pay for. If you buy a Yugo, don't expect Cadillac performance.

www.texasinspectionpartners.com

Let's face it, home inspections would be shorter and less painful for all parties if the seller was really ready for the inspector. Home that are well prepared end up with fewer write ups, a shorter negotiation and buyers that are less worried about surprises.

I have been providing agent the following checklist for a number of years. I am proudly a Texan, so those of you that deal with snow and basements may have a slightly different list, but this should generally cover everyone.

Exterior

• All exterior doors should be accessible
• All door locks should be operable
• Remove debris from gutters/downspouts
• Trim trees from within 4 feet of the roof slope
• Trim shrubs at least 18 inches away from the foundation
• Lower soil, where possible, to reveal the top 4 inches of foundation
• Insure that the interior of the garage is accessible and that the door and/or opener functions.

Interior

• All interior areas should be generally accessible
• If present, Crawl Space access should be clear
• Remove clutter from utility rooms used for storage
• Attic should be accessible. Make sure the stairs can be pulled down without endangering belongings/people below
• Remove clutter in closets

Electrical

• Electrical Panel needs to be accessible to the inspector. Remove anything blocking the panel for easier access
• To avoid unnecessary write-ups, replace all burned out bulbs.
• Remove "creative wiring" such as extension cords used in attic, interior and exterior.

Plumbing

• Fix any leaks before the inspector arrives or let the inspector know. Otherwise, testing the plumbing could result in a very wet mess.
• Correct any plumbing "alignment" issues, hot should be left or up on all controls.

Heating and Air Conditioning

• Install a clean filter
• Consider having the unit cleaned and serviced especially if it's been a while
• Maintain all repair invoices

Fireplace/Chimneys

• Especially if has been a while, clean the fire box before the inspection. If you have anything in the fire box that would prevent lighting the fireplace, remove it.

Pets

• It's best that pets be removed from the premises during the inspection. Keep in mind that the inspector needs access to the entire home, so the garage and the backyard is not a good idea!

Utilities

• All utilities on (Electricity, Gas, Water and all Pilots lit ) so the inspector won't need to return to finish

Foundation

• Remove wood, debris or stored items away from the foundation.

Appliances & Systems

• Any appliance or system that is going to stay with the house should be operational or disclosed to the buyer as not operational. This includes all kitchen, bath, yard and garage mechanical systems.

www.texasinspectionpartners.com

One of the continual debates among inspectors, defense attorneys and other interested parties is not what to write, but how to write it. The question is how much information does anyone need about any one issue noted.

In general most agree that there are three levels of comment on an issue:

1. Simply describe the issue. Some inspectors hold that it is their role to simply list the issues noted during an inspection. No inspector can know enough about the buyer to know what each piece of information means to any buyer. Also an inspector can not determine the breadth of repairs needed based on his visual inspection. The buyer of the inspection service must do further research on his own. E.g. "The half bath toilet is loose and can be shifted on the waste pipe."
2. Describe the issue and explain what it means to the buyer. Many inspectors not only note issues, but explain, basically what it means to the buyer. Most avoid in-depth explanations and stick to the most prevalent impact. This technique still stays away from specifying repairs. E.G. "The half bath toilet is loose and can be shifted on the waste pipe. This can allow a leak at the floor or sub-floor which can lead to both cosmetic and structural damage."
3. Describe the issue, explain what it means and specify repairs. Under this technique the inspector provides all of the information needed by the buyer except cost. The risk is that he/she could be wrong about his repair specifications. E.g. "The half bath toilet is loose and can be shifted on the waste pipe. This can allow a leak at the floor or sub-floor which can lead to both cosmetic and structural damage. Remove the toilet, check the floor decking, wax ring and mounting bolts, repair as needed and remount."

In the end, many of us use all three techniques, depending on need. After all, you probably need more information about a foundation failure indication that a simple broken window. I am always a bit concerned about any inspector that sticks to a specific technique for all items. This will invariably bog down the report or make it too sketchy.

Part of developing good communication practices for an inspector, is to develop a sharp understanding of how much information is needed for each item. Good inspectors know that they do not need to cover their risk with excessive verbage, because it is just as likely to create problems. There is no easy answer other than to become a student of communication styles. It takes some work, but if you look, you cann find an inspector who knows how to write.

Good Luck.

Glenn Wharton

www.texasinspectionpartners.com

Looking back over the more than fourteen years I have been inspecting, I know that some of the buyers and sellers that I encountered could have been better prepared for the home inspection phase of the real estate transaction. There would have been fewer surprises, fewer "write-ups" and negotiations would have gone smoother and faster.

Buying and selling real estate can bring out the best or worst in people. The home inspection phase of the transaction can be contentious and emotional or educational and informative. Here's my risk management advice for orchestrating the variables: you (the real estate agent), the home inspector, the buyer and the seller.

The First Variable: The Real Estate Agent

Professionals tend to refer other professionals in all fields of endeavor including real estate transactions. Top real estate agents refer top home inspectors to prospective home buyers. They understand that there is more risk in lengthy referral lists than in one or two specific recommendations. You have a lot of control here in terms of who will perform the inspection. Use it to protect your client and yourself.

You need the inspector to be professional, timely, objective and skilled in good communication, both oral and written.

What you may or may not know about selecting your home inspectors:

•· Not all inspectors have good bedside manner. Top players have good oral and written communications skills. This gives them the ability to tailor each inspection to the needs and communication style of each client so that the client gets the most out of this event. This reduces uncertainty and smoothes the process for everybody. I list this as the first point for a reason.

•· Not all inspectors are insured. It is better risk management for you if the inspector has both Errors and Omissions (E&O) and liability insurance. Additionally, many inspectors have E&O with a "third party rider" which protects anyone that recommend their services.........like an agent.

•· Qualifications and expertise vary widely even in licensing regimes. For example, some are qualified to perform construction process inspections while others are not. Also, licenses do not guarantee experience and people skills.

•· Services Offered. Please compare apples to apples. Top inspectors want the buyer to attend so that he can learn, take digital pictures, produce a coherent written report, carry E&O and spend at least 2 hours (1 hour per 1000SF, minimum 2 hours) in most single family homes. Inspector that do not provide this level of service can and do charge less. Do you want less service for your client?

•· Inspection fees vary. Beware of what appear to be bargain fees. This is a clue that the inspector is new, not insured, having trouble getting referrals, or perhaps offers less service. The top players in your market will vary in pricing by little more than $40. If someone comes in $80 less than what you are used to ask questions.

•· Stay away from the Yellow Pages or overly long referral lists. Unless you know each inspector listed and are comfortable with their performance, you are risking that your client will find the one under-performer that is going to get both of you in trouble. Refer only who you know. If you don't know enough, talk to your peers, test a few out and develop a three inspector list.

•· Report formats vary widely, however, the professional standard is a typed report with digital pictures. It should be coherently written and easy to read. The "meat" should not be buried in excessive CYA language. Most better inspectors use digital photography in the report. I do not personally care if an inspector prints on site or emails, as long as delivery is "same-day". Time is money.

The Second Variable: The Buyer

Please encourage the buyer to attend the inspection. Buyers who are not present at the inspection tend to have more misperceptions, which can cause problems later. Critically, a buyer who attends the inspection gets even more for his or her money. Think of the inspection as a walking seminar about the house. That's usually good therapy for the stress involved in a home purchase. Granted this works better if the inspector involved has good bedside manner. .

The buyer should budget a minimum of three hours for the inspection. The length of the inspection can depend on the personality and knowledge level of the buyer. Make allowances.

Tell the buyer to leave the kids and relatives at home. They do not contribute to the inspection process and quite often make it longer as well as more stressful. Some buyers bring Uncle Louie, the dream stealer. Beware of Uncle Louie. He has killed many a deal by talking his young nieces and nephews into backing out for less than valid reasons.

Here are some things the buyer needs to understand before the inspection:

• There is no such thing as a perfect house. Especially if it is new construction. A good inspector will always find things. Not because he has to justify his existence (I hate hearing that offhand comment from a realtor, it is INSULTING), but because there is always something there. I tell buyers to not be concerned with how much I find, but with the seriousness of what I find. I have done homes with 25 issues all of which were minor and homes with 15 issues, of which 5 where critical, high dollar repairs.
• The buyer will need to pay the inspection fee on-site in most cases.
• The inspector is not present to help the beat up the seller for the benefit of the buyer. We exist to provide fair and accurate information. Many buyers, unfortunately, think that since they are writing the check we will look at the house from the standpoint of supporting their negotiating position. I have always held the position that we represent neither the buyer nor the seller, we represent the truth. Having a true reflection of the condition of the property is ultimately the fairest outcome for each participant.
• The inspector will not comment on cosmetics. He's looking for mechanical and structural problems, habitability issues and safety items per the language in the purchase agreement and most inspection standards and licensing rules. I am familiar with an inspector in a non-licensed state that was sued for $9,000 for not writing up a cigarette burn in a kitchen counter. The plaintiff never disputed that the counter could still perform the purpose for which it was intended, it was all about cosmetics. Why does our industry accept that level of stupidity?
• The inspector is not the appraiser, surveyor or repair contractor. He can not tell you about the home's value, flood plain or repair cost. Most state and associations do not allow inspectors to repair homes that they have inspected. Most inspectors are not repair contractors and can not quote work for other service providers. Any inspector that quotes prices, in writing, for issues he identifies is taking a big risk. What happens if the bill triples after someone digs in? If you want to know the cost, ask the qualified contractor.

The Third Variable: the Seller

Buyers tend to be more comfortable and at ease if the seller is absent during the inspection. Furthermore, some sellers become defensive during the inspection, which can cause problems. That said, depending on the personality of the seller, there can be some benefit should the seller available during the inspection.

Having everyone attend the home inspection generally results in all parties being on the same page. However, it is important to understand that the home inspection is for the benefit of the buyer, not the seller. If a buyer invites a seller to be present at my end of inspection summary, I simply make the following statement and continue my process.

"It is nice that both of you can be present for my summary. Normally this increases understanding of my findings and smooths the process. It is important to note, however, that both of you have agents that are not present (normal in my market) and as a result you should not make any negotiations or agreements without consulting them. Please listen to what I have to say and ask any question that you desire, but then consult your agents before taking any further action".

To prepare the seller for the home inspection, the listing agent should remind the sellers that the inspector will not move heavy furniture or storage items. It is important that the seller do the following:

• The home should be "showing clean". The inspector needs to see as many structural surfaces as possible.
• Move stuff away from in front of the electrical panel and fireplaces (the inspector will be getting into them).
• Clear stored items, etc. away from the attic stairs or scuttle hole.
• Move the vehicle out from under the pull-down stairs in the garage.
• Make sure all exterior doors are accessible and the keys are present.
• Leave a copy of the disclosure statement on the kitchen counter.
• Replace burned out light bulbs. Otherwise, the inspector will likely report the light as defective.
• If something doesn't work, for instance the dishwasher, it should be disclosed and a note should be posted stating such. If it is a minor item, fix it before I arrive. This prevents the buyer from asking for a high dollar repair on something you could have done yourself. We can discuss pre-listing inspections later.
• Kennel Rover or Tabby for the day. That dog that "never bit anyone" might feel cornered and get aggressive. Also Tabby can sometimes be quite an escape artist.
• The seller's kids should not be home if the parents are not. If you have small kids, you may want to consider a trip to Chuck E. Cheese while I am at your home.
• If it is vacant, please make sure that all utilities are on. My understanding is that NAR and most state standards hold that it is the obligation of the seller to prepare his home for showing and inspection. Not his agent, the buyer or the inspector. I am amazed how often the seller assumes that I am going to spend an hour de-winterizing a home and lighting pilots and that they are not obligated to pay for my time. This is such a terrible use of my time, that Some years ago I stopped doing it.
• Have a copy of any existing pest control contract or the recent termite treatment laying out for the termite inspector. Buyers often ask about these documents. I prefer to be able to address specific situations, rather than general answers.

I am pretty sure that someone may evaluate me as arrogant as result of the foregoing, but I guess I will have to live with that. I long ago decided that I would stick to doing my job a much as possible, and refrain from doing other peoples jobs. I do not mind helping when it makes sense and I have the skill, knowledge and time. However, I will not allow my self to be taken advantage of.

Good luck in your endeavors. I hope the foregoing helps your deals stick together.

Glenn Wharton

www.texasinspectionpartners.com