Every agent at some point will have that “home inspection from hell” so I decided why not write a post of home inspection tips for real estate agents? I know I’ve had my fair share of terrible home inspections, everything from radon levels at 24 pCi/L to wells that can’t produce enough water for them to even test the septic system…

Fortunately, each of these nightmare home inspections have been good learning experiences so I can offer a few good home inspection tips for real estate agents.

Here are some things you can do to give your clients the best advice when it comes to home inspection tips:

1. Learn what home inspectors do: I didn’t learn during my real estate training exactly what a home inspector did. It seemed like all they beat into my head was make sure a buyer gets one and why a home inspection was so important, but they never bothered to really explain everything home inspectors would be inspecting. So do as much research as possible to learn what inspectors inspect what, and what common problems might be.

2. Learn how to read home inspection reports: Every home inspector will use a different report, unless you’re lucky enough to be in a an area where they’ve started to use uniform reports. While each report will cover the same basic information, they can be widely varied in their detail and organization. It also depends on if the home inspector uses home inspection report software, since reading a typed report is a lot easier than reading a handwritten one on carbon paper! Some home inspectors include photos - others don’t.

3. Realize all home inspectors are different: No two inspectors will inspect a house and have an identical report. While they all adhere to the uniform codes of home inspectors, some inspectors may notice something others don’t. The more houses you sell, the more you’ll start to prefer one home inspector over another. While you don’t want to recommend any specific inspector (this puts liability on you), you’ll at least be able to guide your clients to a list of 3-5 inspectors that you’ve worked with before and trust.

4. Make sure your clients understand the home inspection: You’ll want to make sure your clients understand that the purpose of a home inspection is to find major structural defects - not to have a way out to back away from the contract. Many buyers think they will make an offer and then be able to back out of a deal over a leaky faucet - in most cases its not going to be that easy, at least not without losing their hand money along the way.

5. Give your clients a checklist: Your home inspection tips to your clients should include a checklist of some sorts. Make sure they understand their time frame, their deadlines, and what they should be asking the inspector during the home inspection.

6. Encourage your clients to attend the home inspection: It astonishes me how many buyers do not attend their home inspections. There are a lot of reasons they should - the main one being able to see what the inspector sees first hand, instead of reading it on the home inspection report and panicking.

7. Stay out of the way: It is generally recommended that the agent does not follow along on the home inspection to reduce your liability, since you are NOT a licensed home inspector. Sure, you can let the inspector in and help them find what they need (the electric box, etc.) - but after that, wait quietly somewhere until the inspector is finished. The inspector will likely show you whatever they find afterward.

8. Discuss home inspection negotiation BEFORE you write the sales contract: Buyers will sometimes see a home inspection as a way to knock off thousands of dollars from the sales price. While I believe a home inspection almost always pays for itself, I do not want to be involved in haggling home inspection repairs if I can avoid it. It can cause a lot of grief for both buyers and sellers.

9. Tighten Up That Contract: In our state, buyers have a lot of options pre-written in the sales contract to choose from when it comes to home inspection contingencies. They can choose to walk away for any reason (that’s not a good contingency to have by the way!) or put in the contract that the seller agrees to repair or credit the buyer for the cost of repairs - and only if the seller refuses do they have the option to walk away. Other options involve a deductible amount they can set - so if the buyer chooses to accept any repairs under $2000 for example, the seller would only be responsible for crediting or repairing if the cost of repairs that exceed that amount. Tightening up the real estate contract achieves two things: it makes it possible for the buyer to negotiate terms that makes their offer more attractive - and it makes it less likely either party will bail out later.

10. Allow time for “licensed professionals”: One of my biggest pet peeves about home inspections is when I get a report from a home inspector that repeats “this must be inspected by a licensed electrician, that needs to be assessed by a licensed plumber, a structural engineer is needed etc, etc.” The home inspector does this so that they have less liability, but it can also really frazzle you - especially if you’ve only got 24 hours to deliver a response and are scrambling for an HVAC person to come do a last minute inspection.

So there you have it, my 10 home inspection tips for real estate agents. Have any other home inspection tips you’d like to share with other agents? You know I’d love to hear them in the comments below!

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