Home Inspection Tips Every Real Estate Agent Needs to Know

Ashley (04:06.135)
Welcome everyone back to the Leading that Lane podcast. This week we thought we would go over a little bit about inspections and just how maybe the market's changing a little bit and the frenzies of, you no contingencies on offers, maybe changing a little bit. So we're seeing here a lot of, of things come up in inspections. And back in the day, I used to do a lot of pre.

inspections like before we listed and I do actually think I'm gonna start recommending that for numerous reasons. So we thought maybe we just delve into what the market's looking like right now as far as what requests look like, what are ways to handle those requests and maybe ways to just be ahead of the game before you even get to that situation.

Steven L Burch (04:53.456)
So like, what do you feel that the reason, is the pro of doing a pre-inspection when you get a listing?

Ashley (04:59.781)
Lots. so I think one is, especially like if someone is on a time crunch, I mean, I don't know about you guys right now, but like getting contractors and the properties is not easy. So if we have, if we give ourselves a runway, like, Oh crap, we need to get some of these electrical things taken care of. Like they could even at least be worked on, like while you're getting the listing ready. Um, but one of the things I think it can save costs too, is that

In the pre-home inspection, let's say that things come up. I mean, if the seller, if they're handy, can fix them. They can hire their handyman to fix them. They can do whatever, but you know, once you're under a contract, sure, the seller might have the right to cure, but nine times out of 10, the amendment's going to say licensed plumber, licensed electrician, et cetera. So there's, sure, you're paying for the pre-inspection, but now you're not paying for the service work to be done in that. You know, I hadn't.

An example where it a high end listing and again, people don't go on their addicts and they don't go on their crawl spaces and in their attic they had mold and instead of us listing it that week, we postponed the listing two weeks, have the mold mitigation out and then, right, like the listing was ready, the reports were available, all of the work to done. So like it just sped everything up where like right now I had one where the offer fell apart because of mildew mold.

And it took us six weeks to get someone in to repair it. And then now it's just like, how do you get traction back on that property? Really? You know, it makes things a little bit more difficult. So I think the ability to make repairs yourself, but I mean, just really the ability of like knowing that there's not something that's going to stall out your transaction.

Steven L Burch (06:39.546)
I mean, it's negotiation power too, right? Like you are now able to provide a report, the repairs that you've done, and still the buyer can choose to go and do their own, hold another one, hold different inspector, and that's their prerogative. But these are, I think sometimes sellers or us as owners, we are a little bit nose blind to our own properties or we don't see things just because we see it all the time and it's not a big deal to us. So it just helps tremendously.

So how do you position that with a seller when you're trying to go win the listing? Is that something that you pay for out of pocket? Is that something that they pay for? How does that work?

Ashley (07:17.377)
Yeah, I do it that they pay for it. I mean, I think it's an advantage to them. I think that there are people that, you know, you could not work that into a compensation package. Like, you know, if a higher compensation, you might do that. And I know that there are some people that do that. I think that's a great option too, especially just depending on if you have a inspector that's willing to work with you as far as, if I give you X amount of pre-inspections, can we negotiate that price? That's definitely an option. I would say that most people I explained to them like the importance of

knowing ahead of time. then I think a lot of them see the value of, you know, maybe $500 spent on not being delayed weeks or not knowing or having the ability to fix them. for the most part, I actually have a lot of sellers that have just asked like, do you think I should? Would you recommend it? Would you do it? When I sold my house, I had a pre-home inspection. Same thing. Like I didn't want to be, although I wasn't excited to anything, I didn't want to be surprised. You know,

What three weeks from closing, if you think about a typical closing, that's five to six weeks. then we're all again, like, no, now what, do you start over? And so I do just think explaining to sellers like the benefit of them and how it can speed up a transaction. It speeds up the transparency. I mean, I think too, you might get, you know, stronger offers too, cause people already know what they're walking into. or to be honest, let's say that they're not going to fix these things. Like then I would price accordingly, like, Hey,

You now know these things, we need to price it accordingly. So I think that, again, same thing, it's trying to prep them for the most realistic long run.

Steven L Burch (08:51.192)
To me, it's almost like we require buyers to have pre-approvals. And so it's kind of like a pre-approval, if you will, for a seller to be able to have this upfront on there. Have you had a seller say, no, I'm not paying for whatsoever, I'm not doing that at all?

Ashley (09:09.343)
I mean, not that they're not paying for, but that they would rather just wait to see what comes up if the buyer were to choose to do. And I think that it'll get easier as the market's changing. You know, again, that was a harder discussion, but I saw that some sellers do it in the height of the market. like, right when, when you listed a property and you knew you're to get 10 offers, you knew that likely the offer you accepted wasn't going to take, have an inspection. I'll be honest though, like this last couple of weeks, the amount of problems in home inspections.

In the back of my mind, I keep on thinking like all those people that didn't have home infections, you know, in the COVID rampage, rampage of frenzy makes me nervous. I remember whenever I would have someone do it, I would just like, promise me that you'll have one after you move in. And a lot of them did. And right. just would give these examples of things that they don't know about, but I just,

I forgot where I was going with that, so.

Steven L Burch (10:05.648)
That's all good. But to me, like if a seller is going to be like, no, like, like not motivated to do it at all, not that they don't want to pay for it or, you know, they want to wait, like, it almost kind of raises a red flag for me a bit of like, hmm.

Ashley (10:10.057)
not really.

Steven L Burch (10:20.912)
So is there something, do you know something that you're not disclosing or is this how you're going to be in negotiations of you're going to be so stubborn and not do anything. So do I need to prepare for that? Or is this even the direction I want to go if, you know, I'm taking on the listing? um, you know, go ahead.

Ashley (10:38.877)
I I remember what I was going to say now. So I think that where it will play more of an important moral now, and I don't know what your market is like, but stuff is sitting on the market a little bit longer than what it used to. So again, like we have to start positioning ourselves as to not only what differentiates us as an agent, but what differentiates you as a seller. So.

If we have the same exact property for $250,000, like what is making yours a little bit more desirable? Well, we've already had a pre-inspection. You can know all of the things ahead of time. So I think that as the market changes, we need to think about ways to position our sellers so that they do have an advantage over other listings so that maybe they won't be those listings that are on for 90 days now or to price reductions then.

Steven L Burch (11:27.652)
Right. I think like it's no longer the wonderful sellers market, right? Like that everything is going to fly off.

So I think that, like you said, differentiating against the competition and what we used to do quite often on our flips, whereas be able to offer the home inspection upfront, the buyer's cost credit, right? Like right up front, the home warranty right up front. So the goal is to make it to where that the buyer didn't have to have cold feet or know like, how do I negotiate this? Here, if you bring us this price, these are everything that you're gonna get included.

and already have everything right up front ready for them to be able to go. So it's easier of a transaction to come to the table. So I think the more that you can do those different inspections or reports or whatever else, it definitely helps because we don't need any more headaches than a transaction, right? Like it's, there's already going to be enough. So adding in additional opinions and everybody else like know what we are dealing with and having the true picture, I think helps the seller tremendously with their negotiation power too.

Ashley (12:35.579)
I too, like in our area, I don't know if you guys have had any like major insurance claims, but we had a hail storm two years ago. I feel like we're going to be dealing with this hail storm for like the next five years. feel like it's coming up like three transactions this week. So same thing. Like if you had the pre-home inspection and it says hail damage, like there is, we are in this like small little window yet that they might be able to.

Steven L Burch (12:47.674)
Thank you.

Ashley (13:03.206)
file an insurance claim. again, like, we known that right away. So went to property earlier this week and, mom hasn't lived there for three years, but I knew it was on that side of town. So I was like, so did anybody look at your roof in the last two years? And he was like, no, but you know, the skylight broke two years ago. And I was like,

You know, so same thing like I was very upfront with him like we might have to have a roofer look at this and like we might have to disclose that there's Hail damage and oddly enough. I had a hail damage on a roof last week I didn't think there I thought the last hailstorm was October and they called our insurance agent and our insurance agent said that there was one in May of this year They got a new roof, which is probably also why we're not gonna have insurance in like five years

Steven L Burch (13:45.903)
Looking good.

damn entrance. So with the inspections, like going through with the seller, let's flip the script. If you were representing the buyer and the seller already had a home inspection completed, would you take that home inspection that the seller has already provided or would you have your buyer do a whole new home inspection?

Ashley (14:13.85)
tough one. I think sometimes it actually depends on the inspector. You know, I think in our area, like we know the inspectors that are thorough and in depth and we know the inspectors that aren't. So if it was one that I would recommend, you know, I would previously recommend, I think I would tell them that. But I would also tell them that like each home inspectors trained differently. I have had no lie, the property I closed on last week had three inspections and the last

Steven L Burch (14:17.326)
Mm.

Ashley (14:42.618)
90 days, he had a pre inspection, an offer that was an inspection that fell apart and then the third offer. And they were all different. I mean, blows my mind. So I mean, there is like that aspect that people do things differently. I think in that situation, you know, what we used to do in in COVID times to was be a little bit more creative about, you know, like putting a number to the allowance of defects. So

anything under a total value of $5,000 or $1,000. think I'd feel more comfortable in that situation and that, like we've had an inspector there, it appears that they've made all these, but let's just put this in there in case there is anything major that we missed. I think it's always hard for me to tell people not to have a home inspection. And ultimately, like, I feel like that has to be their call. I mean, let's be honest, I've also told many people to have a home inspection and they don't, you know, which

Obviously too, like we've changed our forms and we have a buyer acknowledgement. If someone doesn't want a home inspection, they have to sign off that we advise that they do. You know, because what happens is they don't have a home inspection and then they buy the house and then something happens and then we want to be the ones that they blame. So we do obviously always suggest it. I do think that that's probably a case by case, you know, basis too. I think, you know, house by house too, like when you're talking about these

1920s homes, like, they're just more apt to have more problems, you know, versus a new build, right? You shouldn't have those types of problems. I think it's probably case by case, but what about you? What do you think you would do in those situations?

Steven L Burch (16:18.736)
I think that's good answer. It depends on who the inspector was. I think it's wild that we have home inspectors. I don't know if it's a requirement for them to be licensed and insured in your guys' state. our state, there's no licensing. It's like the Wild West out here. There are some that have licensing as far as through education or whatever.

Ashley (16:24.119)
Mm-hmm.

Ashley (16:39.365)
no, hers is a licensed home inspector.

Steven L Burch (16:47.364)
that the state does not mandate or require any sort of licensing with them. So we have, I mean, when you say that we have different opinions across the board, we really have it across the board.

Ashley (16:52.342)
That's crazy.

Steven L Burch (17:01.104)
So I don't know, it kind of depends on who it is. Also, like I've had to where I've had the home inspector go back out there now for the buyer's eyes in the sale. think it's at a discounted price since they've already been there. So that always helps there as well. check the repairs, see if there's anything else that they missed type of thing. Yeah. So I think that's because.

Ashley (17:14.23)
Sure. Like to recheck the repairs?

You know.

Steven L Burch (17:27.108)
I think also in our area, and primarily a lot of our loans are VA. So there's this misconception that, well, there's going to be a VA inspector that's going to come out to the property, an appraiser. That's not what they're there for. They're not there to inspect the property for.

the buyer, they're there to inspect the property to ensure value for the bank that is going to be making the loan. So it's always trying to get people to understand that like just because there's an appraisal does not mean that they're going to check these different parameters. So it's tough to get people to see them, but I always suggest getting a home inspection and making sure that we have ourselves covered because you're right. They're going to come back and they're going to say, Steven, you didn't do this. It's your fault.

And that's it.

Ashley (18:14.07)
Well, I think sometimes it even like depends on the buyer. especially like a first time home buyer, I do think it's critical. You know, I don't know about your inspectors, but ours too, we'll kind of just do a run through of the house with them. Like here's the water shut off. Here's your furnace filter, like those things that they just wouldn't know where if it's the person that's bought 10 houses, right. They might be like, Ashley, I've been through this.

Steven L Burch (18:18.096)
Sure.

Ashley (18:40.114)
I don't care. I'll take care of it. I'm a handyman. I'm a contractor, right? So think that those are, there's so many variables.

Steven L Burch (18:46.606)
Yeah, absolutely. So with that, like the home warranty companies, do you have your sellers do offer home warranty upfront or is that in the negotiation? How does that handle for your listings?

Ashley (19:01.192)
Also case by case basis. I think, so there's kind of like twofold. So there's a seller part of it and then there's the buyer part of it. So the seller part of it, I really feel like it has to do with the condition of the home itself. So like if the furnace is 25 years old and the AC is 25 years old and the water heater is 15 years old and all the appliances are 10 years old, I just tell them that's going to be a concern for the buyer. So why don't we just give them peace of mind right away? So that instead of their feedback being

furnaces or the Atheas or our feedback and just be like well I totally understand and the seller wants to give you peace of mind so ours run for 13 months after homeownership. The one selling point and I don't know if you guys have this but we have three plans and the top plan that will kind of so like it covers the seller while they have it listed like the bottom plan only is for the buyer.

Steven L Burch (19:39.812)
Mm-hmm.

Steven L Burch (19:54.106)
Yeah.

Ashley (20:00.211)
So I tell people like, let's spend the $200 more because during the length of our listing, and if something were to come up during the home inspection, you could actually use the home warranty. So I would say like in older homes, I don't feel like most sellers.

like buffer that at all. Like they're normally like, if you think that will help me sell quicker than I will. Um, so I would say that like new homes, I'll just tell people like, I mean, your furnace is two years old. I don't understand, you know, those types of things. Um, but on the flip side, I do have a lot of buyers requests for home warranties and same thing. It's a, the ability to negotiate. So a lot of agents will write their offer with the 625. So it's only covering the buyer.

I write mine as the 825 and then I remind, so in ours, then it actually retro's the seller. So even if they didn't list with it, if the buyer asks for the 825 in the offer, then the seller would be covered on the day of the offer until closing. So like I present that to the seller as, well, they were already asking for 625 just for their coverage. If you pay $200 more, you'll now be covered until we get to closing, which could be 60 to 90 days from now. So I always have to like reiterate to the other agent,

Steven L Burch (21:08.42)
Mm-hmm. Smart.

Ashley (21:14.584)
it will now cover the seller. I think they forget. But man, we have, you we get a receipt like every time a home warranty claim is put in from any of our properties. And it's it's a lot. You know, and so I think that that's, I will say that typically, when you don't see an inspection, that's another like, typically follow it up within a home warranty. So that's kind of like, hey, seller, my buyer isn't asking for

Steven L Burch (21:27.481)
Mm-hmm.

Ashley (21:41.594)
inspection which could save you thousands but they are going to ask for a home warranty so it kind of helps escape that a little bit.

Steven L Burch (21:47.707)
Yeah, no, that's smart. Never even thought about just increasing it from the other side. Like that. I mean, and then how would that work? Like if a something that pops up off the home inspection and you put that in that initial offer, I mean, something since it's.

Ashley (22:01.81)
So ours on the top planet covers anything that's considered pre-existing. So that's the other part that's really nice.

Steven L Burch (22:05.872)
Yeah, that's awesome. I know we had, there's a couple of home warranty companies like that we will not use at all.

Ashley (22:14.969)
Steven L Burch (22:16.484)
We actually have it like on the property management side that like we won't touch them like with a 10 foot pole. but they're, can't remember if there's another company that I really liked that because they are able to use or were able to use our own, contractors. So it's way easier because we're out here in rural America. lot of the contractors that contract with the home warranty companies, are a couple hours away. And so I'm trying to get everybody to coordinate and whatnot. Like

it was just havoc. So I like being able to have the choice of contractor too.

Ashley (22:48.294)
Yeah, ours is, mean, shout out to UHP. They like very vocalize on the city that you're in. So that's what I love is that their contractors are the contractors that I would call myself. So I think the other thing too is sometimes like when you get with these national companies, like there isn't a connect where like these guys, I know who they are, see them at places when something doesn't seem right. I mean, I think it was the 4th of July weekend and somebody's AC went out and they couldn't find their home. There was this whole rigmarole.

Steven L Burch (22:55.236)
Mm-hmm.

Ashley (23:16.653)
And instead of like fretting about it, just literally sent him a text. I was like, I know it's the 4th of July, but do they have coverage? And then he wrote back, anything for you, this is their number, right? So like having to be able to have those types of relations with people like, know, are real on the other side, I think is really important too.

Steven L Burch (23:24.784)
Mm-hmm.

Steven L Burch (23:33.464)
Awesome, no, I love that. And then is that something that you, it sounds like you basically tell the seller, like if you're going to a listing, that these are their responsibility for them to pay for out of pocket, correct?

Ashley (23:45.292)
Yeah, unless we were going to negotiate a higher compensation.

Steven L Burch (23:47.707)
Yeah, I know. think it's definitely smart. And I think that's something too that can differentiate you as the listing agent, because more than likely, in my opinion, the other agents that are, you know, trying to go to that same listing and win that listing, they're not going to have those same types of conversations. Like they're going to hyper focus on their own compensation and not the value and the different benefits that can come to the, that they're providing or that you can stack in there. So it's making sure that you have those different tools and resources, depending on which case.

Ashley (24:12.396)
Mm-hmm.

Steven L Burch (24:16.932)
which scenario you need to run through.

Ashley (24:18.954)
I think, you know, I just, that just reminds me to being, it's so important to work with a local realtor and a knowledgeable realtor. So for example, I went to a listing preview on Monday night and, it was that, that hail, right? Like I knew as soon as I pulled in the driveway, I was like, they didn't have their roof replaced. Cause I can see moss growing on it and moss didn't grow in two years. Right. So like I knew right away, that was like my second question to him is how old is your roof?

If you hired a realtor from three hours away to list your property, like they sure as heck don't know that a hail storm came through here two years ago, right? So I think like, it just goes back to like working with people that are so familiar with it so that you don't, you know, now they're fully aware. They didn't have to wait for an inspection to have that come up. But again, it's important because we have those connections too with the local people that are willing to help.

Steven L Burch (25:13.284)
And I think to like going and identifying those issues, those defects, and being able to say something right away to the seller to where I think that a typical agent...

might take a little bit of time to bring that up or not be so direct in asking the question, right? Like those are the things that like, I think you have to spearhead and right. mean, like hit it right on the head, right at the beginning, because if you're not calling them out or not seeing it, like what kind of other issues are there going to be? But also by you being that direct, it shows how you're completely different than everybody else. You're looking at the property. You're not just there to sign the docs and, you know, throw a sign in the yard. You're making sure that

this is going to be a great transaction. So it's okay to ask those challenging questions or those difficult questions.

Ashley (25:59.635)
I think that's what I love is like when I go to a listing preview and I'll ask these questions and they'll be like, like I know someone else has been there, right? And then they'll be like, how come the other realtor didn't ask me those questions? And I was like, I don't know, that's a good question, but this is how I conduct, you know, these things, these are the things I need to know as far as how we're going to list your property or what defects. So, you know, I think that some agents stray away from those hard conversations, even the compensation question. I just had that discussion with an agent this morning about, um,

You need to make sure that, I mean, if a seller, a lot of times they'll beat me to the punch, but if they haven't, like, I don't leave there without talking about that. And I know that like nine out of 10 agents are probably avoiding that conversation where I don't have any qualms having that conversation. And I think that sellers appreciate the transparency upfront to have those conversations. think, you know,

Whether it's the inspection, the home warranty, whatever it is, just having the upfront conversations with the sellers is, all they want. They don't do this every day for a living. They just want someone that's transparent and is truly looking out in their best interest.

Steven L Burch (27:01.998)
and they know that they're gonna have to pay you. It's not like they're calling and thinking that it's gonna be free service. So why try to beat around the bush with it? Own it, value, making sure that you're bringing it to the table. Cool, good, I love it. Great tips for sure. Definitely learned some things from you, so thank you. As always, if you guys have any topics or need anything, reach out to us. We'd love to hear from you, and tune in next time.