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Home inspections are part of the buying and selling transaction.  Nearly all contracts are contingent (meaning if the buyer doesn't like it they can get out of the deal and get their money back) on a satisfactory inspection.  Every inspection uncovers at best a few deficiencies and in some cases 40 or more items.  Some items can cost thousands of dollars to correct and worse are potential deal killers. 

The buyer usually hires a "Professional" home inspector after they negotiate the terms and conditions of the purchase with the seller.  The inspection should occur within the first week after the acceptance of the contract both for the benefit of the buyer and seller.  There is no point in waiting to find out you can't get past inspection issues.

After the inspection buyers and sellers renegotiate the contract to address what, if anything, the seller will fix, how much money will be credited to the buyer.  This is often where negotiations get acrimonious.  Sellers are insulted because they think the requests are not reasonable.  It is not uncommon for a seller to say "We lived with it for years and it wasn't a problem.  What do they think they are getting - a brand new home"?  Of course buyers always feel they came up to the seller's pricing demands and their request is not unreasonable. 

The difficulty for the brokers is how to negotiate a settlement agreeable to the parties while protecting the best interests of their client.  At times clients become so engrossed over the small details of an inspection negotiation that they overlook the big picture which is buying or selling the home.  Tell me truthfully, would you really let a deal worth hundreds of thousands of dollars go over $1,000? How about $3,000?  I mean honestly you are going to return to daily cleaning and vacating your home for showings for another month or two.  As a buyer are you telling me you don't really care that much about the home you just wrote the biggest contract offer of you life upon and that you can't wait to jump back in the car and find a replacement?

Let's get serious and relax.  THE TRUTH IS BUYERS AND SELLERS ARE ALL LOUSY NEGOTIATERS!  Worse yet, an inexperienced real estate broker is scared of offending their client.  They simply become an go between repeating the demands of the parties instead of acting like an experienced professional and asking in depth, insightful and probing questions to enhance everyone's understanding of the situation so as to improve the communication of the negotiations and help their client achieve their ultimate goal which, incase you forgot, is selling/buying the home - not saving $500 or $1,000 on inspection items.   

I am not telling you that you should simply fold in the negotiation process.  What I am suggesting is that the inspection is just one part of the transaction process and creating ill will here may cost you dearly in the long run.  You want that seller to deliver the home timely and in good condition right?  You want the inspection items corrected properly - not on the cheap, right?  You want the buyer to close on the deal don't you? 

The big ticket, big scary inspection items are always - electrical, plumbing, roofing, Radon Gas, structural and furnaces.

9 SELLER TIPS TO AVOID INSPECTION PROBLEMS: 

    1) Consider paying for a "pre-inspection" of your home especially if you have an older home.  This helps you understand what kinds of problems the buyer's inspector may uncover.  Then take the time to fix the major problems.  Remember, a buyer wants you to hire professionals to "Replace" when it might be less expensive and easier to "Repair" instead. 

    2) Hire a handyman for one day to come fix sticky doors, loose cabinets, drippy faucets, drywall cracks, paint touch up, loose toilets, minor electrical issues, replace broken shingles, fix sticky windows, clean the furnace, fix down spouts and tip downs, and back fill negative drainage areas around the foundation. TOTAL SAVINGS = The cost of hiring a plumber, electrician, furnace technician, roofer, window company = $1,000 or more. 

    3) Cleaning inside your furnace with a vacuum and sponge and replace the filter will save you $300.  Inspectors do not look at furnaces.  They tell you they do but really they are scared about the liability of making a mistake.  What they do is open the cover, see a dirty furnace and filter, then recommend that a professional furnace contractor service the furnace - your cost $300!  While you are at it clean your air conditioner.  This will save you another $200. TOTAL SAVINGS $500.

    4) Replace burned out light bulbs.  Inspectors turn on the switch.  If it doesn't work they recommend having an electrician look at the electrical system to determine if their is a problem. 

    5) If you finished the basement or added another electrical circuit make sure it is wired into the service panel correctly.  I can't tell you how many "do it yourselfers" cowboy the electrical installation.  Electrical is a BIG DEAL for a buyer.  Hire an electrician and get everything fixed before you get a contract!  TOTAL SAVINGS = the value of your saved contract.

    6) Call a roofing company to come evaluate your roof.  They typically do this for the homeowner for free.  They will identify missing and damaged shingles and flashing.  Usually repairs are between $250 and $1,000.  Wait for the buyer to find it and they will request a new roof to be installed.  TOTAL SAVINGS = up to $10,000.

    7) Repair and repaint cracks in the drywall.  Buyers see this as a structural problem when 99% of these are just minor issues.  Don't wait for the buyer to find them.  Don't rely upon the buyer's agent to tell them that these are minor either.  Most agents don't know and we are not licensed engineers so we avoid this liability.  TOTAL SAVINGS = the difference between getting an offer and not getting an offer.

    8)  Caulk and seal the cracks in your driveway, porch and sidewalk.  This demonstrates to the buyer and their inspector that you are a conscientious homeowner who doesn't want water getting under the concrete.  TOTAL SAVINGS = $500 to $2,000 for replacement of the concrete.

    9) Call your local glass company to service any sticky windows or failed windowpanes (foggy windows).  If you know who manufactured your windows they often come with lifetime guarantees.  Call the manufacturer for service. 

    10) Provide a third-party home warranty for $350 for a year to cover the major appliances and components of your home.  This increases buyer confidence. 

 3 BUYER TIPS FOR AVOIDING THE INSPECTION PROBLEM:

    1) Get the home inspected by an ASHI or ISHI certified home inspector.  Preferably one who offers a guarantee to repair or replace anything they inspected that fails within the first year.  A_PRO Home Inspections http://www.a-pro.net/ is probably the only inspection service who guarantee their work this way.  Most other inspectors guarantee is up to the cost of the inspection - Gee, thanks!  You can call my guy Jeff Lyons at 303-485-8800 or email him at jeffrey.lyons@aproweb.com for more info. 

    2) Ask the seller to provide a one-year home warranty from companies like American Home Shield (AHS).  I can't vouch for them but the cost is nominal around $200 to $400 for a year.  You can extend this as you wish.  If the seller won't provide it maybe it would give you peace of mind to do it yourself.

    3) DON'T SWEAT THE SMALL STUFF! So what if the light switch is crooked or their is a cosmetic crack in the drywall.  Forget about the loose door knob.  Concentrate on the big ticket items.  If their aren't any be happy and ask the seller for a $200 to cover half of a day for a handyman.  Wouldn't you prefer to supervise the repairs rather than the seller who will never see the home again?

Final comments:  The smoothest and happiest deals for buyers and sellers occur when the inspection negotiations go smoothly.  Refer to the tips here to help this.  There is just too much at stake to get hot and bothered half way through the closing process. 

Also, don't pimp your broker or the other broker to pick up the tab for the inspection items.  Threatening them either overtly or passively by suggesting that if someone doesn't pay you won't close is dirty pool; a morally weak negotiation strategy.  Keep the negotiation is between you and the other party.  If they won't pay and you won't pay then just move on.