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James McGovern
  • Flipper/Rehabber
  • Bloomfield CT
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Inspection contingency clause in listings

James McGovern
  • Flipper/Rehabber
  • Bloomfield CT
Posted

In a sellers market I was strong in saying that inspections were for education purposes only. Now that the market is shifting I have been willing to entertain major issues and a few minor one. I have seen an uptick in inspection reports listing items that are not code violations and an abundance of them to impress homeowners with their thoroughness 

how do I signal to buyers that they shouldn't expect any negotiation on reports that contain a dump of minor items

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Marc Winter
  • Real Estate Broker
  • Northeast PA
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Marc Winter
  • Real Estate Broker
  • Northeast PA
Replied

Educate and communicate with the buyers before showing any property.  Let them know that issues concerning code violations are of concern; cosmetic issues are not.  Cosmetic concerns will be reflected in the offer price. 

Example: worn or slightly cracked tiles in a kitchen will be obvious to a buyer during a showing.  If an inspector lists it, I'd consider it a cosmetic defect.  

The seller normally will not negotiate on that item because it was obvious to the buyer before the offer was made. 

So my rule of thumb: if a code-related item slips past detection during showing (before the offer is made) and is later listed by an inspector after acceptance, it certainly should be addressed. 

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