Monday, November 16, 2015

Who’s controlling the inspection process?

During the last segment we discussed some impact examples of a Seller’s Inspection process. In case you missed it, check it out here.

Here’s a real example of how controlling the inspection process effects everyone involved:

A buyer’s inspection was completed on a $160,000 home. ¾” separation gaps were observed along the foundation tuck point where the landscaping grade continuously directed water into the basement windows (which were not insulated and exposed). A broken downspout drainage extension in the same location was directing more water into the same area, causing mold to spread into the basement while penetrating the electrical wires for the control valve box.

Using the inspection report from Home Fax Inspections, the buyers negotiated $25,000 off the price, purchasing the home for $135,000. The buyers resolved the issue for less than $2,000 before taking possession of the home, 2 months later, saving them $23,000. 

Pretty good return on investment for the buyers who paid a $400 inspection price, wouldn’t you say?

Now as a seller or agent, you may be cringing. Why?

Not only did the seller lose out on $23,000 from the purchase price, since they could have made the same repairs for $2,000, but the time it took to close increased the sellers process by around 6 weeks. Since they were relocating, this increased their expense for temporary housing and travel, consumed enormous amounts of their time, and had no positive outcome for the seller who thought they were too busy, and wanted to save money, instead of having the same repairs completed themselves. 

If that was the end of the atrocity, it would be enough. But it wasn’t…

With a 3% commission, the buyer and seller agent each lost approximately $1,000 (or 25% of their total commission percentage) and invested hours, days, and weeks of additional time, potentially leading to the loss of additional sales or clients as a result.

Needless to say, a seller’s inspection would have saved enormous amounts of time, money, and hassle. Don’t wait until it’s too late to control the inspection process. Work smarter, not harder.

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