One of the popular questions I get from homeowners after accepting an offer on their home is who will be at the home inspection.
They usually want to know if real estate agents should be at home inspections.
Sometimes, in a listing interview, I mention that a listing agent should be present at a home inspection. I want prospective home sellers to know that I will be there representing their best interests.
If you have not sold a home in a while it is certainly a legitimate question to ask.
Let me start by saying that I try to attend every home inspection, whether representing the buyer or the seller.
Why do I do this for my clients? The answer is pretty simple – it is part of my job!
All real estate agents should attend home inspections!
When buying or selling a house, the home inspection is a vital part of the process. It is one of the most significant hurdles to clear in a real estate transaction,
As a seller if you want excellent representation, your listing agent should be at the home inspection. Without their presence, the odds increase you will asked to make repairs or provide seller’s concessions.
Sometimes the concessions requested do not match the severity of the issue. Also, A home inspector’s report often does not match what they say in person.
Let’s examine why a listing agent and buyer agent should be present.
Should Buyers’ and Sellers’ Agents Be at Home Inspections?
What the inspector finds and says during and after the inspection significantly influences the final sale, so it only makes sense for everyone involved – the buyer, the buyer’s agent, and the listing agent – to be there.
Yet many times, you will find buyers following the home inspector around with no Realtors in sight.
A good agent is an advocate for their clients. They should be there at the home inspection to represent that client. Whether the real estate agent chooses to be one step behind the inspector the whole time, or wait quietly in the background to answer the client’s questions, will depend on the agent.
But you can always spot a careless or uninvolved Realtor in their absence at the inspection.
This applies to both the buyer’s agent and the seller’s agent. Each has a client to represent and should be present at the home inspection!
Given the fact that more real estate transactions go sour because of some issue, it is important that sellers do what it takes to get ready for the buyers home inspection. Have a look at the common issues that should be addressed prior to an inspection taking place.
Who Attends a Home Inspection?
The home inspection is a crucial step in the home-buying process, and it usually involves several key parties in attendance. At a typical home inspection, the primary attendees include the buyer, the buyer’s agent, and the listing agent.
Each party plays a different but essential role in the inspection process.
The buyer’s presence at the home inspection is essential as it allows them to gain a deeper understanding of the property they are purchasing.
The buyer can ask questions, receive valuable information about the home’s condition, and potentially identify any issues that need to be addressed.
Additionally, the buyer’s agent is present to offer support and guidance throughout the inspection, helping the buyer interpret the inspector’s findings and offering advice on any necessary next steps.
Should The Listing Agent Be Present at The Home Inspection?
On the other hand, the listing agent attends the home inspection to represent the seller’s interests. They may provide additional information about the property and address any concerns or questions during the inspection.
The listing agent’s presence allows them to gain insight into the inspection process and the buyer’s concerns. Attendance can be valuable in facilitating negotiations between the buyer and seller.
It’s essential, especially for a first-time home seller, to know they have proper representation.
In summary, the attendance of the buyer, buyer’s agent, and listing agent at a home inspection reflects the collaborative nature of the home-buying process.
Each party brings their unique perspective and expertise to the inspection, ultimately working towards ensuring a transparent and informed transaction for all involved.
A Realtor is Supposed to Represent the Client
Although it may not be a subject that many real estate agents want to bring up, it is effortless to become a real estate agent.
As long as you can read the study material and successfully take the test, you can call yourself a real estate agent.
Like with all careers with a low entry barrier, the real estate industry attracts both shining stars and real duds.
Some real estate agents are highly dedicated, motivated to excel, and strive to serve their clients better. Others are just there for the paycheck, if and when it comes in.
Whether they have a second income to rely on or live on the cheap, they only do the bare minimum to be called a Realtor. I like to call this a post and pray real estate agent. They do very little and never go the extra mile.
Scheduling Conflicts Do Happen
This is not to say that all Realtors who miss a home inspection are terrible at their job or doing wrong by their client. It could be that they have a scheduling conflict, which is impossible to change.
It is better to get the home inspection done and out of the way rather than scheduling when the agent can make it sometimes.
When truly representing the client, the Realtor will be at the home inspection if possible.
There are just too many ways they help the client by being there.
In my professional opinion, a buyer’s agent should represent their buyer client at the home inspection. Likewise, the listing agent should also be there to represent the seller during the home inspection.
How can you possibly represent your clients interest in a home inspection if you are not there to hear what has been said by the home inspector? The answer is simple – YOU CAN’T!
Buyers and Sellers Hear The Real Estate Agent Liability Excuse
For real estate agents that make it a practice of not attending home inspections, you are bound to hear the “it creates too much liability excuse.”
I am telling you right now that is complete and utter hogwash! The only thing that creates liability at a home inspection is what you say and do as an agent, NOT your attendance there.
Agents have gotten into hot water by putting their feet in their mouths when they should remain firmly planted on the ground.
It is the real estate agent who thinks they are a know-it-all that ends up getting sued and losing.
How does this happen? How does the agent take on liability? When they become a 2nd home inspector in attendance!
The perfect example of this is the buyers agent who points out what they think are flaws in the home instead of letting the inspector do their job.
This kind of agent thinks they are being helpful when, in fact, they could be setting themselves up for a giant lawsuit.
Keep Your Mouth Shut, You’re Not an Expert
Real Estate agents have been sued in the past and lost because of what they have said at an inspection. It goes down like this – buyers agent points out flaws to buyer.
The buyer takes note of said flaws and buys the home anyway. Months later the buyer discovers additional items in the home that are defects. They sue their agent for not pointing them out and take them to court.
Here is what happens in court:
The Buyer’s lawyer – “Ms. Buyer’s agent, were you attending my client’s home inspection”?
Buyer’s agent – “Yes, sir, I was there.”
Buyer’s lawyer – ” Did you point out these three defects during the inspection to the buyers”?
The Buyer’s agent – “Yes, sir, I did.”
Buyer’s lawyer – “Why did you not point out the fact there was termite damage in the sill plate of the home”?
Buyer’s agent – “I am not a home inspector, sir – that is not part of my job.”
An Agent’s Job is to Listen
Are you beginning to understand what will end up happening here? Do you see why the buyer will win their suit? Attending the home inspection is not an issue if you don’t step out of your area of expertise.
Real Estate agents must keep their dam mouths shut and let the home inspector do their job! Real Estate agents create their own liability by what they say, not what they hear.
Remember that even the best home inspectors can miss issues in a home. They are there for a limited amount of time, and there can be defects that are not easily spotted.
The perfect example of this is ice dam problems. A seller could easily conceal ice dam issues and a home inspector might not pick up on it. All the more reason a real estate agent should not be a 2nd home inspector.
Benefits of the Realtor Attending the Home Inspection
One of the primary roles of the agent is to negotiate on behalf of the client. Much of the terms of the final deal will be based on what is found at the home inspection.
How can the agent negotiate a home inspection effectively if they are not there to hear what the inspector says? Nine times out of ten they can’t!
This, my friends, is why a listing agent should be there.
The home inspector will thoroughly inspect the home, searching for potential problems, explaining proper maintenance to the buyer, and making notes and decisions based on the findings.
How the inspector does their job will vary, but you can expect much information to pass between the inspector and the clients.
The clients will often know nothing about home inspections or about buying and selling real estate. The information that the inspector relays to them may be understood accurately, but often it is not.
By the end of the inspection, the buyer will often have misunderstandings about the severity of issues, and inaccurate views on how the inspection should affect the transaction.
This can be especially true if it is a first time home buyer.
Exaggeration of Issues is Commonplace
Some buyers are also notorious for exaggerating home inspection issues. I will give you the perfect example of how things get twisted.
During the home inspection, the inspector looks at the roof and tells a buyer it is beginning to show signs of wear and tear.
The inspector tells the buyer that there is about three to five years of life left in the roof.
You would not believe how many times over the years a buyer has turned three years of life left into the roof needs to be replaced right now and I want you to pay for it Mr. Seller.
This situation is far more common when the listing agent is not there to hear exactly what the home inspector has represented to the buyer.
The buyer’s agent’s job is to help the client understand the inspection and the expectations of what should occur after the inspection.
The Realtor may ask the inspector questions about their statements for clarification. The Realtor can also help the client understand what needs to be fixed, what issues will affect the price of the home, and how those issues compare to similar homes in the area.
Remember that the buyer could ask for the moon when it isn’t justified. There are two sides to the fence in a real estate sale. This is why it is imperative that a seller’s real estate agent attends the inspection.
I cannot tell you how many times I have been at inspections where minor issues were blown out of proportion by a buyer. This is much harder to do when the seller has their representative in attendance.
The Home Inspection Report Differs From What The Inspector Says
Another benefit of attending the home inspection is knowing exactly how significant the issues are with the home. I have been on numerous inspections where the problems discovered were relatively minor.
By looking at some of the inspection reports you might think it was a totally different home that was inspected. Sometimes the inspection reports can be downright ominous!
I have seen home inspection reports that could scare away even the most hardened buyers. There is a lot of liability on a home inspectors part. Many of their reports make the items discovered seem far worse than they are.
This is called CYA – cover your ass!
There are however some concerning home inspection problems that should never be overlooked. These are the items that nearly every home buyer will want corrected. It is important for sellers to understand these issues and deal with them so the transaction continues smoothly.
A good home inspection report will detail all of the issues discovered both on the interior and exterior of the home. I have found that the best home inspection reports will include color pictures of the issues so all parties can quickly identify the problems. This becomes especially helpful when a seller asks a contractor to look over the problems for correction.
There Are Good and Bad Inspectors
Just like there are good and bad real estate agents, there are also good and bad home inspectors.
An experienced Realtor who has attended some home inspections will be able to recognize a good home inspector and interpret for the client accordingly.
Some home inspectors are great about keeping things in proportion, educating the clients, and delivering precise, accurate assessments of the state of the house.
But there are also inspectors that love to be drama queens. They tend to blow things out of proportion.
Some inspectors may even enjoy the startled looks on the faces of the clients when they imply that the house may fall down or is a money pit.
Having the agent there to bring a bit of levelheadedness to the situation benefits the clients.
Shady things go on in every industry, and the home inspection business is no different.
One of the things that buyers need to be cognizant of is the home inspector who will blow the most minor defects out of proportion.
While this type of inspector is in the minority, their goal is to make you so frightened to buy the home that you back out.
Why do they do this? Simple – to get a second home inspection out of a buyer! Just think of how much more money the inspector makes if he gets to charge each client twice.
Most of the issues with home inspectors stem from their poor communication methods. It’s not discovering issues that should be dealt with.
The Delivery of a Home Inspector Matters
I will give you an example of what I mean. Let’s assume for a minute that a home has a “double tapped breaker” in the electric panel. This is a common issue found during many home inspections. It is when two wires are found in one breaker.
Here is an example of two inspectors discussing the same issue with their client.
Inspector A – Whoa! I just found a double-tapped breaker in the panel. Mam you better get this addressed right away! This is an extreme safety issue that creates a severe fire hazard. You should get this checked out immediately by an electrician.
Inspector B – Mam I want to point out to you that there is a double tapped breaker in the electrical panel. Not to worry as this is something that is super common. This in fact is something I see routinely all the time while inspecting homes. It is something you should address but it’s nothing to worry about. It is very easy to get corrected.
How issues are relayed can make or break a purchase for first-time home buyers and laypersons when buying homes.
Both inspectors have explained this issue but in very different fashions. Home inspector B is not an alarmist. Inspector A however, will make most buyers feel very uncomfortable about what is a very minor issue.
Now take this same example and multiply it by every issue found in the home. Are you beginning to see how the inspectors delivery can impact a real estate transaction?
Some of the best home inspectors I have found are certified by the American Society of Home Inspectors or ASHI for short.
Doing the Job Right
Any agent who wants to be a true representative of their client needs to be there when the inspection happens. There are too many benefits to do otherwise. A real estate agents job does not end at the home inspection.
The buyer’s agent and the listing agent will end up negotiating items from the home inspection.
It is pretty challenging to do this well if you were not there initially.
For those agents who are reading and saying to yourselves it is just not a custom in my area to attend home inspections why not step out of your comfort zone. How about going above and beyond expectations.
What do you think would happen if you started doing this as a value-added service when other real estate agents were not? If you are thinking you would get more business you are correct!
Conclusion
Real Estate agents should be present at home inspections. It is beneficial for the listing agent and buyer agent to attend to represent their respective clients.
Additional Helpful Home Inspection Articles
- How do you remove radon from water via Maximum Real Estate Exposure.
- Field guide to home inspections via The National Association of Realtors
Use these additional articles as references on topics that are important surrounding home inspections. Always remember that a home inspection is a vital part of buying and selling a home!
About the Author: Bill Gassett, a nationally recognized leader in his field, provided information on whether a listing agent should be present at the home inspection. He is an expert in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 38+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
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