Agents and Home Inspectors

As a Realtor racks up more than a handful of transactions, he/she becomes aware that there are many breeds of home inspectors in the field (just as there are many breeds of real estate agents, of course!).

Home inspectors should aim for a network of appreciative agents (buyer and seller agents alike), who can be looked upon as a source of ongoing client referrals. Makes sense; every hard working business owner wants constant referrals to keep the bottom line healthy. So why do some home inspectors make it HARD to recommend them?

One home inspector that my buyer client employed managed to test the patience of this agent, and the home seller as well. I actually had to experience not one, but two inspections by this same inspector because my client went under contract on two different properties before a successful conclusion of his desired transaction.

What was the problem, you might ask? Time. That inspector took no less than 4 1/2 hours at each property. The time was not simply reviewing every nut and bolt in the property; that I might at least understand. The time was spent largely in explaining, in a never-ending stream of consciousness, every component and system in the house to the buyer, how everything works, thorough instruction on maintenance of those components and systems, going well beyond what the intent of the home inspection provision as stated in the current area multi-board contract. The current boilerplate contract states "The home inspection shall cover only major components of the Real Estate, including but not limited to, central heating system(s), central cooling system(s), plumbing and well system, electrical system, roof, walls, windows, ceilings, floors, appliances and foundation. A major component shall be deemed to be in operating condition if it performs the function for which it is intended, regardless of age, and does not constitute a threat to health or safety." So, the buyer is guaranteed the right to gain assurance that major components are operating properly. Period.

If a buyer wants a deeper understanding of HOW the central humidifier works, for example, it would be appropriate to seek out a home-buyer workshop on "How to Maintain Your New Home Purchase" or perhaps read up about a component online, or borrow a book from the library, or or or or.....

In one instance I had to continually reassure the home SELLER, who was being polite by staying outside on his screened porch so the buyer could follow the inspector in privacy on a very cold day, that the inspector was "almost done", over and over. I have heard a story from another agent that she once witnessed a home inspection that went on for some eight (that's 8) hours, in a very small property.

And recently I have had the opportunity to correct blatantly incorrect information stated in the inspector's report to the home buyer. Such as (I am paraphrasing here) "The screen insert is missing for the kitchen storm door...should be replaced..." After the inspector left the property, I went into the attic, where the inspector had also been, picked up the screen insert that was leaning against the wall in plain sight, brought it into the kitchen, checked the screen insert for fit with the storm door, and promptly emailed the buyer's agent that I have placed the reportedly missing screen insert in the kitchen for the buyer to utilize as desired. This same inspector stated in the written report that carbon monoxide detectors were missing, and must be placed in the home, per the 2007 Illinois requirement. Once again, I emailed the buyer's agent to state that indeed there WAS a CO detector mounted just outside the bedroom doors (in compliance with the law), and said detector was functioning, evidenced by the digital readout face. Conversely, this same inspector missed a couple obvious flaws in the property that I would have wanted disclosed, if I had been the buyer agent.

It takes many people, specializing in varied professions, to take a property transaction from start to finish. Home inspectors are an important link in that transaction chain. Home buyers need to employ an inspector who will take care to do a fine job on the inspection. But the key word here is "INSPECTION." The home inspector should INSPECT, not LECTURE, and not hand out incorrect information. Do a good job, get more referrals.

What Can a Realtor Do to Sell a Property?

In my last post, I mentioned the activity called "reverse prospecting." What is it? As a licensed agent who subscribes to the two local multiple listing services, I have the ability to identify other agents who have registered buyer clients who are a potential match for my listings.

I cannot read the identity of the buyer client, but I can read the name and contact information of the agent who is working with that buyer client; this is done through the MLS software. In this slower moving market, it is definitely a benefit to my seller client to be able to place a phone call to each of those listed agents, and draw their attention to the listing I am trying to sell.

When I am searching for a property for a buyer client, I am diligent in reviewing the MLS several times a day for new listings, and consider every single one with careful scrutiny. But guess what! Not all agents do this, take these extra steps to find the right property for their clients. So it is really important for a listing agent to make those phone calls to agents who might have the perfect buyer in their portfolio of clients.

A personal phone call will not only engage the buyer agent in conversation about the fact the listing EXISTS, but it can also answer questions about the property, clear up any misunderstandings about the listing, and otherwise eliminate objections to the property: "Doesn't that condo building forbid pets?" "That used to be the case, but two years ago the Board of Directors changed the by-laws, and now cats and small dogs are allowed!" "Wow, that's great news! My buyer client has a cat. I'll bet she would love to see the unit. When can we see it?" Not only have I aroused interest for my seller's property, I have alerted a buyer agent to a listing that might be his/her client's perfect next home.

And so, a showing! And maybe a buyer willing to make an offer to purchase! And all it took was a phone call. Enough said.

Elm Tree Village sales in 2007 - tough!

There is a unique and lovely townhouse complex in south Evanston called Elm Tree Village. Built in the mid-1950's, this collection of 36, 2 bed/1 bath red brick homes covers the length of an entire city block, from Washington south to Cleveland, along Dodge Avenue.

It is not unusual to see anywhere from 2-5 of these units to change hands in a year. But to experience 5 of them all on the market simultaneously? Wow. Each seller has a very different reason to be selling: one is relocating to Wisconsin to enter a graduate program at the University in Madison, another is moving to northern Illinois to be closer to the workplace, yet another is moving within the complex to gain the advantage of an updated kitchen and bathroom!

The significance of this glut of units for sale is this: the small pool of buyers who are interested in this type of property will pick off first one of these units, and waiting for the next buyer to step in and make an offer could potentially take many more weeks, if not months, given the slow market we are experiencing. Each of the units has its advantages and disadvantages, and each buyer will perceive those units very differently, depending on their preferences for end unit vs. being a "sandwich," updated kitchen and bath vs. original equipment, etc.

The somewhat happen ending is that suddenly, 3 of the 5 are under contract. The first one to go (contract dated June 12) was a surprise, imho, to most agents. The next contract did not happen until July 5, and then quickly another one on July 6.

Getting a home sold under these circumstances takes extra diligence; I worked the reverse prospecting tool very hard, stirring up energy and interest in my listing among the 5. Ultimately, it was the networking that paid off, bringing in a buyer.

More topics for another day.