Why We Always Attend Property Inspections With Our Buyers

We would never want to miss an inspection with our buyers; here's why

  • As a Buyer's agent we work for (not with) our clients.
  • Representing clients means working in their best interests.
  • The property inspection is a major contingency to work through.

Buyer’s agency creates expectations from and for both parties. Real Estate Agents need to represent their clients, and most buyers need help navigating a real estate purchase.

The buyer wants to hire someone who knows what they are doing, will do what it takes to get them into their next home, will work in their best interests (finding properties, negotiating the best terms and so on) and will promote and protect their interests every step of the way.

Once a purchase offer is fully executed, the buyer’s agent assumes the role of supervisor: keeping track of what needs to be done when and providing whatever guidance is needed to complete the tasks required to close escrow.

The process typically focuses on two major aspects: inspecting the property to make sure that there are few surprises (unexpected maintenance can be costly!) and accessing the financing so the buyer can complete the purchase.

Inspections and financing are the most likely “deal killers” as sales are contingent on their completion. Contingencies are known events that may occur throughout the buying process that must be satisfied or waived to keep the sale moving, meaning they allow both sides to reconsider their original agreement.

An agent representing a buyer must be fully engaged in resolving all contingencies.

The home inspection involves hiring a competent person who is focused on determining “material defects” (rather than cosmetic or update issues) with the major systems and structure.

Depending on the executed contract, the buyer’s response to the inspection results may include requiring the seller to make repairs and the right to terminate the sale. The Purchase Agreement in California states that the contract property is to be sold AS IS. However the buyer has the right to inspect the property and discover any material fact regarding the property. The real estate agent’s job is to make sure the buyer knows all of the suggested and required inspections, understand the process and guides the buyer through negotiation of repairs, credits, or a reduction in purchase price.

We believe that a buyer’s agent should attend the property inspection, or at least be there with the buyer at the completion of the home inspection to review the findings. It is best for the inspector to point out the issues to the buyer rather than to rely on photos after the fact.

The agent is not the inspector and is not expected to act like one — nor should they. To best represent a typical buyer and to be able to best interact with a listing agent if repairs are requested, an agent needs first-hand knowledge and thus needs to be there to review the inspector’s findings as well.

Bottom line: What is in the buyer’s best interest and how can we fulfill our fiduciary duty to our buyer?

Source: Inman News