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I recently had a sale fall through. The buyer's agent sent me the inspection report along with the signed termination document. While it seems very unprofessional for this broker to have his client cancel the agreement without discussing the report with me first, that is what he did. I currently have 2 more offers on the property and I am wondering if I should share this report, (that I did not pay for), with the buyers before going under contract. I would benefit from getting any issues out in the open first and would reduce my chances of having another contract cancelled, and the buyer would save time and money by not paying for their own. Are there any down sides to showing them the report?
Hmmm, wonder if the buyers' agent asked permission of the client (who paid for it!).
Since it was disclosed, IMHO it's now your responsibility to share the findings with your seller, but making it available to other buyers... I wouldn't do it without permission from the paying party. They might want to get some compensation for the use of their report.
Yes, you can do it and I do it all the time. The new buyer still needs to be able to conduct their own inspection, but I ask the buyer agent to write in any preliminary repair requests into their original offer.
It isn't unprofessional for a buyer agent to not discuss the home inspection report with you. The buyer agent represents their client and not you. If their client wanted to terminate, then it is typically allowed in contracts to terminate over inspection report findings.
Yes, you can share the report if you choose. But more importantly, once you receive the report, it is very likely your obligation to disclose any defects identified on the report. As an example, suppose the report stated "Prior damage noted to roof trusses". It would now be your obligation (even if you did not know about the damage before) to disclose, or at least have it inspected/repaired for the next buyer. You can't just pretend you did not know.
Many buyers agents send the reports as a courtesy (the AZ contract allows it). It can be a double edged sword for sellers. Because you can no longer say "I did not know".
Sorry, I forgot to mention that I am the seller. I normally talk directly with the buyer's agent as I have experience flipping houses. As for my comment about it being unprofessional, I was very up front about any known issues and in the termination email the buyer's agent essentially accused me of knowing about the issues in the report and said I would be sued if I did not return the due diligence fee and reimburse his clients for the cost of the inspection. Also, numerous items in the report were flat out wrong or had already been remedied. If he had made a phone call, I might have been able to address their concerns and save the deal, in stead we all wasted our time and money. I expected the realtor would be better at his job than I am, but sadly I have found that is not always the case.
Sorry, I forgot to mention that I am the seller. I normally talk directly with the buyer's agent as I have experience flipping houses. As for my comment about it being unprofessional, I was very up front about any known issues and in the termination email the buyer's agent essentially accused me of knowing about the issues in the report and said I would be sued if I did not return the due diligence fee and reimburse his clients for the cost of the inspection. Also, numerous items in the report were flat out wrong or had already been remedied. If he had made a phone call, I might have been able to address their concerns and save the deal, in stead we all wasted our time and money. I expected the realtor would be better at his job than I am, but sadly I have found that is not always the case.
Sounds almost like a scam. Is the inspector a friend of theirs? Say he's doing an inspection, splits whatever they make off you and move on to the next job?
Personally, I would respond back with your last couple of sentences and add something about threatening and irresponsibility and the state regulatory board.
Sorry, I forgot to mention that I am the seller. I normally talk directly with the buyer's agent as I have experience flipping houses. As for my comment about it being unprofessional, I was very up front about any known issues and in the termination email the buyer's agent essentially accused me of knowing about the issues in the report and said I would be sued if I did not return the due diligence fee and reimburse his clients for the cost of the inspection. Also, numerous items in the report were flat out wrong or had already been remedied. If he had made a phone call, I might have been able to address their concerns and save the deal, in stead we all wasted our time and money. I expected the realtor would be better at his job than I am, but sadly I have found that is not always the case.
"Due Diligence Fee?"
Suddenly you sound like you are in North Carolina.
And, as soon as someone says, "sue," you need to circle the wagons a bit.
I think the burden of proof that you were aware of issues falls to the buyer and agent. You cannot disclose what you don't know.
Yes, you can share the report if you choose. But more importantly, once you receive the report, it is very likely your obligation to disclose any defects identified on the report. As an example, suppose the report stated "Prior damage noted to roof trusses". It would now be your obligation (even if you did not know about the damage before) to disclose, or at least have it inspected/repaired for the next buyer. You can't just pretend you did not know.
Many buyers agents send the reports as a courtesy (the AZ contract allows it). It can be a double edged sword for sellers. Because you can no longer say "I did not know".
No, no, and no. At least not in Texas. First of all, the seller's disclosure form is very general. It asks things like, "Are you aware of any foundation repair or have you personally done any foundation repair?" So the seller is not required to disclose the specifics that is mentioned in ANY inspection report, only what is asked in the sellers' disclosure form. Secondly, the seller doesn't know how competent the inspector is. One home inspector may find defects that another one doesn't, or not find defects that the next one will. Home inspection is not a completely objective thing. Some inspectors are more nitpicky than others. So the seller has no way of knowing how truly accurate an inspection report is.
OP, I would advise against you disclosing the report. It can only hurt the terms of your sale. Any buyer worth his salt will get another inspection done anyway, and you may scare off a potential buyer by showing it to them. If they don't hire their own inspector, reading a dry report outlining various problems can seem overwhelming, even if the house is actually in fine shape for its age. My wife is a home inspector, and when sellers ask her this, she suggests they hold their cards close to the vest. Buyers can hire their own inspector and make their own judgments. They should do that anyway.
"Due Diligence Fee?"
Suddenly you sound like you are in North Carolina.
And, as soon as someone says, "sue," you need to circle the wagons a bit.
I think the burden of proof that you were aware of issues falls to the buyer and agent. You cannot disclose what you don't know.
Yup, NC is the place. I haven't heard anything so I assume it was just an idle threat per the reasons that you mentioned. It almost seems like the inspector has been sued before as he definitely went over board covering his butt, (it was a 60 page report!). I've got 2 similar offers now and both realtors seem like they are on top of things. Hopefully I pick the right one this time!
Yup, NC is the place. I haven't heard anything so I assume it was just an idle threat per the reasons that you mentioned. It almost seems like the inspector has been sued before as he definitely went over board covering his butt, (it was a 60 page report!). I've got 2 similar offers now and both realtors seem like they are on top of things. Hopefully I pick the right one this time!
Few inspection reports are less than 40 pages.
They duplicate findings in a report and then a summary.
They are packed with disclaimers, and also general information for the buyer.
And, it depends on how they present photos. Some do a huge photo addendum.
The inspector is in a tight spot, wherein he can be criticized for missing the most minor items.
And, some market their skills based on how many trees they kill and how long it takes them to do it.
If you disagree with a finding, objectively or can prove it wrong, and truly believe it is not a problem, you do not have to disclose it.
If you fix items, they don't have to be disclosed. You only have to disclose material existing issues.
And, you always have the opportunity for "No Representation," but that weakens your bargaining position. People assume that you are covering something up with No Rep.
I have shared full inspection reports with the next buyer/agent. It is the easiest way for ME to cover my licensed butt and disclose known material issues. My license requires me to do that, particularly when my client is reluctant to make disclosure of known material issues.
I have marked them up citing errors, and also citing subsequent repairs.
But, I would not expect the buyer to substitute that inspection for their own independent inspection.
Good luck!
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