YES, it happens. In my four years as an independent inspector, I've seen it happen when it shouldn't. It looks something like this:

I'm standing in the driveway, field notes in hand, explaining to the buyers the results of my inspection. At each less-than-favorable revelation, their eyebrows arch and their heads slowly turn from me, to the house, to the agent, and back to me. The seller is within earshot, trying to be unobtrusive, but her attentiveness is revealed by the clenched jaw and the reddening face. Her eyes also are attempting to bore holes in the agent's back. The agent, though, is staring fixedly at a point just over the treetops where a clear image of a winged commission check is fluttering toward the clouds. This deal has died. Why? Everyone has a theory - some typical ones are:
Seller: Those buyers were too picky. Did they think they were going to get the Taj Mahal for $75,900?
Buyer: Someone is trying to cheat us. We were told that this house was perfect, but look at this list of problems!
Agent: Life was so much simpler before these (expletive deleted) inspectors came along!

Each of these theories is true, at least from the viewpoint of the speaker. The situation looks hopeless, and in fact, there is very little that can be done to salvage a deal once it has reached this point. But a LOT can be done to keep it from reaching this point.

A real estate deal is, of course, a contract, and a contract is a formalized set of expectations. Deals fall apart when expectations aren't met - so if the expectations are unrealistic, failure is almost a certainty. Now, who is in control of the expectations of the buyer and seller? That's right: YOU, the agent. For years, you've been clarifying people's expectations and then making sure they are met. The presence of that (still unprintable) inspector just means that you may need to do things a little differently.

Let's start with the buyer. When you sell real estate, what are you really selling? There is a lot more to a home than bricks and sticks. As an experienced Realtor , you know that you are selling a number of intangibles - such as the comfort of a building that is well suited to this family's needs, the security of owning a good investment, the status of living in a particular neighborhood. Each home is unique in the way it provides these amenities, and each prospect is unique in his/her requirements. When you find a listing that exactly matches the needs of a particular prospect, you call that person and say, "I have the perfect house for you." You are being quite truthful, within that definition of perfection. Your prospect looks over the property, agrees with your assessment, and makes an offer. Just to be sure, he/she hires an inspector.

The inspector doesn't look at neighborhood, suitability, status, or any of the other intangibles. He looks at bricks and sticks, wires and pipes. From THIS point of view, "perfect" houses are rare indeed. (In over 300 inspections, I can count them on one hand and have fingers left over.) If the buyer is expecting a flawless building, the stage is set for disappointment. House hunting is an exciting process and first-time buyers especially tend to paint rosy pictures for themselves.

BEFORE the inspection, buyers should be aware that NO property is perfect in every structural and mechanical aspect, that all structures need regular maintenance and occasional repair, and that the term "maintenance-free" refers only to the siding and trim. The skilled agent can explain these facts without being a "wet blanket" on the buyer's enthusiasm.

Now, on to the seller. The seller's expectations are simpler. He/She expects to sell the property for the amount stated on the purchase offer. On occasion, the results of an inspection necessitate some negotiation on this point, and we all know that negotiations with an angry person are seldom fruitful. The agent's goal at this point is to allow the inspection to take place without upsetting the seller. Here are some points to remember:

* The inspection process, by its very nature, is an invasion of privacy. I MUST look in closets, open some cupboards, climb into the attic, et cetera.

* In all likelihood, the inspection will reveal some aspects of the property that aren't flattering. These revelations MUST be discussed with the buyer. No matter how tactful an inspector may be, there are some homeowners who will be incensed by these discussions.

* Inspections take time. Working alone, in a newer, small house, I have, on occasion, completed an inspection in less than 1-1/2 hours. I am rarely alone, however. I encourage my clients to accompany me on the inspection and I also encourage them to ask questions during the process. (My function is educational as well as critical. More on that later.) Two and a half hours is about average, and if the home is very large, very old, or has had a number of modifications, more time is necessary. If there is one thing I hate to hear, it is being told at the start of an inspection, "We're having a dinner party in 40 minutes. You'll be done by then, won't you?"

In most cases, the agent can discuss these aspects of the inspection with the seller ahead of time, and thus greatly minimize the stress. In other cases it may be best to arrange for the seller to be absent. The listing agent usually knows his clients well enough to anticipate how they will react, and should be consulted before the inspection is arranged.

"Okay," I hear you saying, "but what about the inspector? Doesn't he have some obligation not to go around killing deals?" The answer is, "No, but..."

NO, insofar as his obligation is to the buyer, who is paying his fee. Any inspector who glosses over defects in order to keep a deal together isn't doing his job.

BUT... If the inspector is doing his WHOLE job, the deal is much more likely to survive. Let's look at the inspector's function. (Please keep in mind that this is MY opinion and that there may be inspectors who don't feel this way at all.)

There are three parts of a complete inspection: Discovery, Communication, and Interpretation.

DISCOVERY of defects is what most inspectors are very good at. It only takes the usual five senses, the right tools, lots of knowledge of construction practice, lots of experience with older houses, and good logic ability. We would like to have x-ray vision and clairvoyance, too; some clients expect that.

COMMUNICATION. This varies from a verbal "Yes, the place looks okay." to a 280-point checklist. The idea is to tell the client what has been found, and some inspectors think their job ends right there. I disagree.

INTERPRETATION. This is where the important questions get answered. "What caused that defect? What will it take to fix it? What will happen if it isn't fixed? How can it be prevented?" The most important question in evaluating a property, "Is this an unusual problem, or is it common on houses of this type and age?" THIS is the information that the client needs to make an intelligent decision. It doesn't make much sense for a buyer to reject an 18-year-old house because it needs a roof, only to go around the block and make an offer on another 18-year-old house. Most 18-year-old houses will be needing a roof in the next few years, no matter how carefully they've been maintained. The inspector's job includes explaining the difference between normal maintenance needs (such as reshingling every 20 years or so), and potentially serious defects (lack of attic venting causing rafters to rot, for example). You, as a Realtor, may or may not have the knowledge to explain these concepts. As an agent of the seller, you probably won't have the credibility in the buyer's mind that an inspector would have. This IS part of the inspector's job.

Now, we're back to the earlier question, "Doesn't the inspector have an obligation not to go around killing deals?" And to the answer, "No, but...".

...if the buyer has been prepared and is not frightened by a house's normal maintenance needs,

...if the seller has been prepared and is willing to negotiate on unusual defects, if any are found,

...if the inspector is doing a complete job, including interpretation of the results,

THEN the deal should survive the inspection. Now nothing stands between you and that closing but the appraisal, the mortgage officer, the title company, the underwriters, the...

Reprinted with permission of Michigan Realtor®

copyright 1987, Matthew J. Bezanson

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