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Home Inspection dispute / rebuttal?

6,451 Views | 13 Replies | Last: 2 yr ago by Shooter McGavin
Animal Eight 84
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AG
We will be selling our home this summer.

If a prospective buyer hires a home inspector that documents a disputable issue, how do we formally document a rebuttal?

My understanding is once a home inspection is conducted, we have to disclose the report.

I'll be asking the same question to our realtor when we formally hire him.

This is our first time selling a home and farm.

We had it custom built on our farm in 1989 and have spent a lot maintaining it, it's in great shape.
However I realize inspectors are hired to find issues.

Thanks !
BMo
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Inspectors inspect to current code. Whether you "fix" items to current code is negotiable with the buyer. Unless you have a significant issue with the house, I wouldn't worry too much about an inspection. Your realtor should help you address any discrepancies on the report. If you get a copy of the report, it has to be disclosed. If you are simply told of issues without seeing the report you aren't legally obligated to disclose. Many times realtors are just told of issues but don't want the report if the deal isn't going to happen.
Red Pear Realty
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AG
To me, the answer to your question starts well before the inspection even happens. The very first thing I do as a listing agent is to walk my listings with my client as far in advance of going live as possible to identify possible deficiencies, and how they can be best remedied prior to listing. I'm not an inspector, but I have done lots of renovations and sold lots of houses, so I can usually help my clients avoid land mines if everything is disclosed up front.

Some agents and inspectors use the inspection as an opportunity to make sure their buyer is getting a good home that's in good shape, but others are really only looking to extract their pound of flesh. So again, the answer to your question starts before the inspection takes place. It's your agent's and your job to do your best to filter out the folks who are just looking to gouge you. Sometimes you don't have a choice of buyers and then it's best to negotiate accordingly.

I'm of the opinion that the truth will always come out, one way or another. So for a good, honest seller like yourself, with a good, honest buyer, the inspection is your time to shine. If your house is in good shape, you will be fine. Usually there are little things here and there on most houses, but if a major issue is identified, my take is to be fair about handling it. HOW that gets handled is another aspect of the equation though. Will repairs be done prior to closing? Credit or price chip? No situation is exactly the same and I'm a believer in "win-win" situations.

To answer your question about the inspection, I, unlike most agents, actually welcome that full report. I can't tell you how many sellers agents have called me over the years screaming because I sent them the inspection report. First, nothing in state or federal law says that you then have to provide that report to future buyers. What the law does say is that you must disclose known deficiencies. In the very few instances where it turned out that the buyer was just looking for a pound of flesh after all, and I get their inspection report and we can't come to a deal, I instruct my sellers to print and go through the report, fix every single item identified (either themselves or via contractors), and I mean EVERYTHING, and document each repaired deficiency with a hand written and initialed note on the report. Then, we post that report on the MLS for all future buyers to see. I've had outstanding results doing this previously (and have never actually seen another agent do this). When I'm representing buyers, I love to see inspection reports before making an offer. It de-risks the process tremendously. It's like the opposing team went offsides and you get a free play.

Finally, I'd love a shot at earning your business when it comes time to sell. We offer full service brokerage for half the price to sellers (1.5% instead of 3%). My contact info is in my profile.
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Red Pear Realty
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AG
BMo said:

Inspectors inspect to current code. Whether you "fix" items to current code is negotiable with the buyer. Unless you have a significant issue with the house, I wouldn't worry too much about an inspection. Your realtor should help you address any discrepancies on the report. If you get a copy of the report, it has to be disclosed. If you are simply told of issues without seeing the report you aren't legally obligated to disclose. Many times realtors are just told of issues but don't want the report if the deal isn't going to happen.


If you and/or your agent know of an issue and don't disclose it, you and/or your agent have broken the law and can be held accountable pre- and post-closing from damages you've caused a buyer or potential buyer. It doesn't matter if you learned of a deficiency in writing or verbally - if you know it and don't disclose it, you've committed fraud.
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CS78
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Make sure you put anything and everything on the seller's disclosure. "A/C unit, water heater, roof are older and in working condition but could be reaching the end of their service life"

That way, when some stinking AC inspector says your unit is old and rusty, you can say the buyer was aware of the issue prior to the inspection and should have taken it into consideration in their offer.
Absolute
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AG
As a home inspector, I would say you are worrying about and gearing up for a fight you don't need to have.

The home inspection isn't personal. Though, having sold homes, I understand that it is hard to keep that perspective when you get a repair request,especially when you take good care of your home.

Contrary to popular belief, inspectors do not call out things to justify their fees. I get paid the same amount that I quoted site unseen, whether it is a awesomely maintained house or a dump that happened to look okay in the pictures because the photographer was good. Being that I am human, guess which situation puts me in a better mode.

When a house is particularly well maintained, you can bet I both notice and appreciate that fact. Make my job easier.

However, in a 35 yo house, even a well maintained one, there will be some stuff. As was said above, most will be related to code changes. But there will be some maintenance items you probably did not notice. It is easier to see those things as a fresh set of eyes than when you saw them change gradually over time because you live there. How often do any of us truly go look for issues around our house? Code changes don't HAVE to be upgraded in most situations, but sometimes repair makes sense bacuse it is a safety thing.

After the inspection, the buyer will send you a repair REQUEST addendum. They can ASK for as much or as little as they want. Since it is a negotiation, that means you can respond by doing everything, nothing or anywhere in between. I would encourage you to be objective and calm and look at it as a business deal. Lean on your agent, they are used to this and used to the emotions that come up.

But I certainly would not spend a single minute worrying about that in advance.
schwack schwack
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AG
Our first house - years ago - was a 1915 farm house that we'd renovated. We told the buyer that we didn't know of anything wrong with it, go ahead & get an inspector, but we were selling as-is for the sales price. It was a great deal. Granted it was a different time & much different market, but their guy came out & said he'd never seen an old house updated as well. BUT he did say the roof was old and would need replacing soon. That was 2003 - they still have the same roof.

Animal Eight 84
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AG
You touched on a key point, "inspecting to code".

I live in a rural unincorporated area, there are only two codes. Windstorm and OSSF. I have a compliance certificate for windstorm and a county inspection certification for septic.

There are no other requirements for code compliance , no Certificate of Occupancy requirements.

FYI- I'm building a new home further inland but in unincorporated county, only one code inspection- septic.
No Certificate of Occupancy required inspections.

So it appears other than blatantly obvious damage or malfunctions , any home inspection " finding" is purely subjective.

Just trying to understand how it works.

More importantly, curious if there is any formal process for rebuttal if a bozo inspector shows up and just doesn't like something.
Then wind up having to disclose bozo's issue to every potential buyer, even if it's BS.

Forewarned is forewarned.
EFR
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What code are they inspecting to? Current code which obviously no old house will meet? Code when the house was built? Code the local AHJ adopted at the time of build which is likely little to none?
Red Pear Realty
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Current codes
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Absolute
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AG
Typically, even then they have to meet state minimums standards. Most of it is just common sense. Do things function? Are they in good condition? Are there safety hazards (yes, by today's standards - safety is important regardless of when it was implemented.)

I have seen some crazy stuff - in town and out of town. Out of town can be more entertaining at times. If you are in Texas (I can't quite tell from your post) inspector's have to balance common sense, realistic issues and TREC Standards of practice.

Like I said though, sounds like you made and have kept a nice house. Inspectors, well good inspectors, are not looking to cause trouble for the heck of it. But even if they do, in this market, if the property is in good shape and desireable, you vertainly have the option to play hardball and refuse to do any repairs. Or offer a little cash and be done.

I would wait and see what happens before worrying though. If they come back with things that are legit and you are surprised (it happens) maybe you repair something. No one can force you. The option period works both ways.
aggiepaintrain
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AG
Inspections are primarily used for a second round of negotiations so keep that in mind during the first round.

If you are selling a house with a 10 year old AC, the price reflects that before the inspector says the AC is old.

You're real worry is the appraiser.
BMo
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I agree and worded that wrong. Thanks for clarifying.
Shooter McGavin
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AG
aggiepaintrain said:

Inspections are primarily used for a second round of negotiations so keep that in mind during the first round.

If you are selling a house with a 10 year old AC, the price reflects that before the inspector says the AC is old.

You're real worry is the appraiser.
Yes, the evil and dreaded appraiser, purposely out to kill deals and make life miserable.

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