May. 8, 2006 - Small, after-sale, fixes

While it has not been my experience, escrow companies have indicated that more and more sales are "falling apart" due to home inspection disputes.

One of the reasons I do not see this in my sales, is that I do not negotiate small fixes.  Putting the contract in jeopardy over something the buyer would not walk from the house over, is not the best way to proceed.  At the time of the home inspection I make four columns on a piece of paper and note which items we will ask the seller to address and which items we "could" ask the seller to address, but instead I will hire a handyman to fix, after closing as the buyer's closing gift.

Sometimes, even when you win you also lose when approaching the seller to repair trivial items.  Often the seller has never met the buyer in person, and so suggesting that the buyer is willing to cancel the sale over something trivial that would cost less than $100 to repair, sends a bad message.  Often the seller will form an opinion of the buyer and think the buyer is not serious about the home purchase when he is asked to turn a screw or readjust a dryer vent hose.

While the buyer may not have meant to suggest he would cancel over such trivial matters, often that is how the seller percieves the request.  Some people say "it doesn't hurt to ask", but it does.  Maybe not at inspection time, but what if you need an extra week at the end because your loan isn't processed yet?  If the seller is already ticked off over the home inspection negotiations, he is less likely to give you that week extension you need at the last minute to consumate the sale. So asking for trivial items at home inspection time can do more harm than good and cause you to win the battle but lose the war!

As the buyer's agent I need to pay close attention to anything that can create disharmony between the buyer and the seller.  At the inspection I keep a running list of items, and if the cost to repair does not exceed $500-$1,000, we go from STI to Pending and I hire a handyman OR I offer the buyer a credit from my commission to cover the cost of the minor repairs.  It depends on the buyer which way I choose to go with the remedy.  If the fix is cosmetic in nature and the buyer is difficult to please, I prefer to give them money than to have someone fix it.  If the fix is a safety issue or a problem that can create more problems if not fixed right away, like a hot water tank ready to blow or a pipe joint ready to pop, I ask the seller to fix it or to let me fix it before closing.  If it is a couple of lose roof shingles that need to be nailed in place or a dryer vent hose pulling away from the wall, I send the handyman.

If I am representing the seller, I generally do the fixes before closing.  If I am representing the buyer, then often I have to wait until after closing, unless I can get the seller's permission to enter the home with the handyman prior to closing.  Only the "owner" can provide entry and permission to change out pipes, etc.  So sometimes I have to wait until my buyer client "owns" the property to complete the fix.

Don't let nit picky repair items start an emotional exchange between the buyer and the seller.  Just because something needs to be addressed according to the inspector, doesn't mean it contractually needs to be addressed by the seller prior to closing.

Nov. 22, 2007 - RE: Small, after-sale, fixes