Preparing Your Buyers For Inspections
There is no doubt that a home inspection can be a pivotal point in the purchase of a property. Essentially, following a home inspection, a buyer can accept the property as is, request repairs, negotiate a reduced price or credit, or cancel the transaction. In my opinion, successfully navigating the home inspection is a key skill for real estate agents to possess. After being a part of over 15,000 home inspections over the last nine years, I have seen all of the mentioned scenarios occur. Additionally, I have seen that the real estate agents that have the most success navigating a home inspection start with a plan and have a systematic process for the client's home inspection experience.
When I was a first-time home buyer, before I got into the business of home inspections, I had no clue what a home inspection was and why it was needed. The process was a whirlwind of emotions and confusion. We were under contract (joy), then our agent said congratulations, now you need a home inspection. All of this was so new, we weren’t sure who to choose and what we needed (confusion). They then explained the purpose and the process, and mentioned they would be sending me a list of inspectors, to which I responded, ‘I want the best! You're an experienced agent, could you please set it up (trust).’ The date and time were set, I was told the price, (wait it's how much?!?! - panic) and we met with the inspector. When we arrived at the inspection wrap-up, the inspector greeted us kindly and immediately started talking about all the stuff that was wrong with the condo (panic again!). He then handed us the report (yes, it was handwritten and had no pictures), we paid him and he walked out the door. We were left completely overwhelmed and confused. We went from loving the condo, to - this place is unlivable and we’ve got to fix everything in about 45 minutes. Needless to say, we canceled the purchase contract.
Ultimately, we found another condo shortly thereafter, and having already experienced one inspection, we were significantly more prepared for the experience of the second inspection. It is not uncommon for buyers, both experienced and inexperienced, to feel nervous or anxious about a home inspection. Based on our experiences, we have created some strategies to help real estate agents prepare their buyers for a home inspection. Please note, that we understand that not every strategy will apply to every purchase, but we hope that it helps you to create multiple winning strategies for seamless transactions.
Communicate & Explain:
Spend time speaking with or providing resources for your client that explain the home inspection process to the buyer. Be very detailed, a step-by-step process that lets them know what to expect, where to be, the purpose of the inspection, how long it typically takes, what the inspector will be looking for, and how you will communicate after the inspection.
Articulate the benefits:
It’s vital to communicate the positive aspects of a home inspection. It is best to explain that it is an opportunity to thoroughly evaluate the property in its present state, identify any visible issues, and make a highly informed decision about the purchase of the property. Stress to your clients that it is a crucial part of due diligence.
make your client aware:
This one is controversial. As an agent, if you see potential pitfalls with the house, before making an offer, make your client aware before the inspection. If you see that there are potential issues that your client may not be prepared to address, then notifying them before the inspection will save you time and energy. If you try to get your clients not to buy the house before the inspection, and they still want the house, then your success rate will improve.
Attend the inspection: Encourage the buyer to be present during the inspection.
FIND THE RIGHT INSPECTOR:
Work with an inspector who provides solutions, creates an opportunity to ask questions, and teaches the buyer about the property. Being involved can help remove anxiety and pressure.
Manage expectations:
Before the home inspection occurs, discuss with the buyer that no property is perfect, and there are likely to be several findings during the inspection. Tell them that minor issues are common and frequent and can be easily addressed. Additionally, there is the potential that any major items can be addressed through negotiations with the seller.
Talk with the inspector before the inspection:
Encourage your buyer to compile a list of questions or concerns they have about the property. This will help ensure that they get the information they need during the inspection. The inspector can prioritize those areas during the client review and communication.
Be empathetic:
Put yourself in the buyer's position and do what is best for their future. Directly acknowledge your buyer's concerns and let them know you're there to help and guide them.
Encourage Clarity:
Be certain to have your client review the written inspection report. After the inspection, carefully review the inspection report. This will allow you to be more informed and have an intelligent conversation about the client's needs and expectations.
It’s ok to walk away:
(This one is also controversial) Do not be afraid to encourage your client to walk away from a transaction. Not all houses are perfect for all buyers. There are some houses that the buyer needs to not purchase. Informing your clients that they have options will only help your business in the long run. The long-term goal is to have clients who appreciate the work that you perform so that you are their real estate advisor for life, as well as sending you additional referrals. You do that by creating trust. While it is challenging to have a deal “killed” by a home inspection, it will likely be beneficial in the long term.
As a real estate professional, it is easy to forget that the experience of buying a home is extremely emotional, overwhelming, chaotic, and exciting. When navigating a home inspection, put yourself in your client's shoes to best understand what they are experiencing. Remember to over-communicate the process with your clients and explain what they can expect out of a great home inspection experience. It is also important to communicate that not all home inspections go favorably, but with proper planning, the client has a path to success. Ultimately, we all want the client to be happy in their new home!