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For what it's worth, my realtor showed up for my inspection, but didn't actually walk around with me or the inspector and just sort of stayed outside on the front porch, making phone calls. It was "my time" to hang out in the house with the inspector.
If the listing agent showed up at inspection and spoke with the inspector my buyer hired, I would ask him/her to chip in for the inspection fees.
If the seller wants the agent to know about the property, the seller should pay for a home inspection prior to listing and invite the listing agent to the proceedings.
Seller has that opportunity, as well as more time to perform diligent prep for market than a buyer does to make a good decision to proceed.
Buyer-funded due diligence is a necessity because so many sellers fail to market properties that are in decent condition. Why, I hear that some even conceal problems...
Luckily in my community real estate agents don't share your attitude toward who paid for what. A copy of the report is not given to the listing agent upon completion of the inspection but more often than not the listing agent is present during the inspection so that the seller can be educated about the issues that come up during the inspection. Personally, I feel there's a better chance that both parties can come to an agreement on how to deal with an inspection issue if everyone fully understands the issue.
Anyway, as a listing agent, I'm not going to let you out of your contract based on an inspection contingency without written proof of the defect (i.e. the inspection report) so what's the point of taking that attitude? Also, in my community, we don't use lockboxes so if you want to get in the property for the inspection you'll need me to be there.
Luckily in my community real estate agents don't share your attitude toward who paid for what. A copy of the report is not given to the listing agent upon completion of the inspection but more often than not the listing agent is present during the inspection so that the seller can be educated about the issues that come up during the inspection. Personally, I feel there's a better chance that both parties can come to an agreement on how to deal with an inspection issue if everyone fully understands the issue.
Anyway, as a listing agent, I'm not going to let you out of your contract based on an inspection contingency without written proof of the defect (i.e. the inspection report) so what's the point of taking that attitude? Also, in my community, we don't use lockboxes so if you want to get in the property for the inspection you'll need me to be there.
Interesting how details differ between regions and states...
My NC buyer can walk "...for any reason or no reason at all..." during their Due Diligence Period as noted in our standard OTP, and the inspection is just a bit of due diligence to help them make a decision.
We share inspections if needed to clarify a repair request, but nothing in an inspection is a contractual issue, unless introduced after inspection via a request.
In NC, it is also different, in that the agents are not principals (unless disclosed) in the transaction and do not make decisions as to whether a contract is terminated. That is a matter between buyer and seller.
You can bet we always consider the cost of a transaction before going to contract.
Typical due diligence expense in my market is about 0.75% of the average sale. Most people don't have that money to throw away.
Interesting how details differ between regions and states...
My NC buyer can walk "...for any reason or no reason at all..." during their Due Diligence Period as noted in our standard OTP, and the inspection is just a bit of due diligence to help them make a decision.
We share inspections if needed to clarify a repair request, but nothing in an inspection is a contractual issue, unless introduced after inspection via a request.
In NC, it is also different, in that the agents are not principals (unless disclosed) in the transaction and do not make decisions as to whether a contract is terminated. That is a matter between buyer and seller.
You can bet we always consider the cost of a transaction before going to contract.
Typical due diligence expense in my market is about 0.75% of the average sale. Most people don't have that money to throw away.
Absolutely! A home inspection in the Boston area will cost you hundreds of dollars. Generally, the inspector bases his fee on the size of the home. More footage=more time=a higher fee. It makes sense and of course some inspectors charge more than others. I've seen the fees of $1K on larger homes.
Certainly real estate practices and laws vary widely across the country. On the internet I try to answer only the most general of questions because of this unless I know the poster resides in my MA.
It must be exceedingly difficult to work in a state as a listing agent where the generally accepted OP has a clause which allows the buyer to walk for no reason at all. The way I write my offers (not all agents do this) is that my client can walk for ANY inspection issue. Many agents write their offers with a monetary floor (i.e. inspection issues must total at least $1K in repair costs before the buyer can walk). In my hometown, the MEDIAN sale price is $660K so people don't enter into any kind of contract or even make an offer lightly.
It must be exceedingly difficult to work in a state as a listing agent where the generally accepted OP has a clause which allows the buyer to walk for no reason at all.
It's not hard at all. There is a time limit for this "unrestricted right to terminate" in Texas. It's a negotiated amount of time. It used to be 5 or 7 days. These days it's 7-10 days depending on how much the buyer is willing to pay the seller for the right to terminate. Nope, it's not free. The right to terminate costs, and that's negotiable too.
Absolutely! A home inspection in the Boston area will cost you hundreds of dollars. Generally, the inspector bases his fee on the size of the home. More footage=more time=a higher fee. It makes sense and of course some inspectors charge more than others. I've seen the fees of $1K on larger homes.
Certainly real estate practices and laws vary widely across the country. On the internet I try to answer only the most general of questions because of this unless I know the poster resides in my MA.
It must be exceedingly difficult to work in a state as a listing agent where the generally accepted OP has a clause which allows the buyer to walk for no reason at all. The way I write my offers (not all agents do this) is that my client can walk for ANY inspection issue. Many agents write their offers with a monetary floor (i.e. inspection issues must total at least $1K in repair costs before the buyer can walk). In my hometown, the MEDIAN sale price is $660K so people don't enter into any kind of contract or even make an offer lightly.
We used to have the "Cost of Repair Contingency" in our standard contracts.
When the NCAR adopted the Due Diligence Period, they pulled tons of details out of the Offer to Purchase and Contract.
There is no appraisal contingency, no lending contingency, no inspection contingency.
Now one period of time covers all those items. If the buyer is not satisfied with the condition of the property, or cannot be confident of funding, or doesn't like the appraisal, then buyer can walk within the DD period. If the buyer changes their mind, they can walk.
The overall inducement built into the process for the seller is to properly prepare the product for market, rather than slapping it out there and hoping the buyer misses a bunch of stuff. Seller may feel a stigma if MLS shows failed contracts, and it is silly to let that happen because they didn't prepare the home to sell.
It is suggested to pre-inspect, work off the gigs, do a preliminary title search (since buyers can go back on the seller for all DD expenses if insurable and marketable title cannot be conveyed).
Sellers have also lost the ability to bombast their way through because of contract language...
Regardless, the buyers agent needs to be confident that the home will satisfy the buyer, because no decent agent wants to burn through their clients' war chest of funds cavalierly on homes with easily observed issues.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Just an FYI for how it works in CA. ANY report for which the seller has a copy and ANY report done (even if the buyer pays for it) becomes available to the seller upon request. (Pest, (a public document no matter what) structural, septic, well, home inspection).
We just love disclosures in CA
Why I attend every single inspection.
Edit: scheduled pest, home inspection, septic on the same day and time. Septic system failed water infusion. Directed septic guy to dig out leach field and he broke the tight line between the tank and the leach field. I jumped into the trench to stem the flow of effluent from going too far. Home inspector comes out and says "you real estate guys make the big money". I asked him if he had ever seen the real estate guy in a sewage trench with a shovel before. Ummmmm No. I did offer him the shovel. No taker.
We used to have the "Cost of Repair Contingency" in our standard contracts.
When the NCAR adopted the Due Diligence Period, they pulled tons of details out of the Offer to Purchase and Contract.
There is no appraisal contingency, no lending contingency, no inspection contingency.
Now one period of time covers all those items. If the buyer is not satisfied with the condition of the property, or cannot be confident of funding, or doesn't like the appraisal, then buyer can walk within the DD period. If the buyer changes their mind, they can walk.
The overall inducement built into the process for the seller is to properly prepare the product for market, rather than slapping it out there and hoping the buyer misses a bunch of stuff. Seller may feel a stigma if MLS shows failed contracts, and it is silly to let that happen because they didn't prepare the home to sell.
It is suggested to pre-inspect, work off the gigs, do a preliminary title search (since buyers can go back on the seller for all DD expenses if insurable and marketable title cannot be conveyed).
Sellers have also lost the ability to bombast their way through because of contract language...
Regardless, the buyers agent needs to be confident that the home will satisfy the buyer, because no decent agent wants to burn through their clients' war chest of funds cavalierly on homes with easily observed issues.
We still seem to get some houses sold...
Very interesting! Clearly the scales are tipped more toward buyer than seller in NC. Always fun to hear how things work in other parts of the country. It's never the same from state to state.
I attend every inspection with my client. I believe I owe that to my buyer in representing him or her. I want to stay in the loop from start to finish. It works well to be present for an inspector to point out anything needing attention. I know my buyers feel at ease knowing I am there on their behalf.
Very interesting! Clearly the scales are tipped more toward buyer than seller in NC. Always fun to hear how things work in other parts of the country. It's never the same from state to state.
To some extent, the current NCAR forms library favors buyers, which is a welcome change from past environments which tilted towards sellers. It is difficult to stop the swing of the pendulum dead even between the two parties with standard forms.
Sellers who want to sell, but are stuck in the past, often go for a ride.
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