Recently I was the “victim” of a problem that has occurred once or twice over the last 3 or 4 years.
It is not unusual for an agent to call me prior to a deal being signed around in order to find out my availability to do an inspection on the property.
It seems that in order to get the offer viewed in a more favorable light by the sellers, agents like to put short inspection contingencies in the offer–like 3 to 5 day inspection contingencies.
While this might seem like a good arrangement for the agent and the seller, it can be a lousy arrangement for the home inspector–and in some cases not the best thing for the buyer either.
Here is the scenario that has been happening.
“Agent Klosetoadeal” calls me to see if I am available for an inspection a week from this coming Wednesday. I say, “Sure–what time?” “Well, morning, but we don’t have all the paperwork in place yet–can you hold the time for me and I will let you know as soon as I can?” asks the agent. Being an agent that uses me frequently I say, “OK.”
This arrangement lines up the inspector and makes it possible for the agent to use a shorter inspection contingency. If they waited to call me after the deal was signed around, they would likely NOT be able to get me within the 3 to 5 day inspection window. They would then have to put in a LONGER inspection contingency and risk not getting the deal because of competing offers that were able to offer the shorter inspection contingency–or they might even be forced to recommend a different inspector.
Sort of a “Catch 22.”
Now, on my side of the equation, because of the “tentative” booking with Agent Klosetoadeal, I end up turning away other inspections—even ones “subject to inspection.”
When Agent Klosetoadeal’s deal never does get signed around, I am left with thinking about all those other inspections where I said, “Sorry–a week from Wednesday is already booked.”
Now imagine this scenario playing out 3 times in a row and you get a picture of an inspector with a lot of blogging time on their hands.
Since I cannot control whether an agent is going to write longer inspection contingencies into their contracts, I think it leaves me with only a couple of alternatives.
Just say, “NO” to reserving inspection slots–or perhaps: “OK–but if I get another call that is ‘subject to inspection’—-I will have to take it.”
Any other ideas out there?
By Charles Buell, Real Estate Inspections in Seattle
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Perhaps a booking fee is in order but even as I type that I realize all the problems with it. One, you probably don’t want a booking fee, you probably want and need the full inspection fee as a matter of being able to support your business. Perhaps you need to be able to ask the agent some questions about the strength of the offer and the number of other offers in the game. Perhaps only agree to a hold if you know the buyer is willing to escalate the offer by a certain percentage of the list price. Just an idea. Best of luck.
Jana, that sounds complicated, but certainly more conversation can help 🙂
This is a common request for me to but I always respond the same way. First come, First served. We do not “pencil in” appointments. That’s like monopoly money, worthless. Besides, we can’t keep tract of all that. We will not set an appointment until they pass our test questions. One of which is, do you have a ratified contract. As it is, we are flooded with inspections and must turn away 5-8 per week so we protect out schedule like it is gold…because time is our limited, precious commodity.
It’s not uncommon for a client to ask for an extension of the contingency period so they can have us do the inspection.
Dan, fortunately this is not a big problem and my post would be more to “what if” scenarios—if it were to happen several times in a row. Typically I am busy enough that I welcome an unexpected day off.
Hey Charles, not exactly sure what you mean when you say “OK–but if I get another call that is ‘subject to inspection’—-I will have to take it.” In my area, pretty much 95% of buyer inspections are contingent or subject to the inspection. With this in mind, it is advantageous for us when a Realtor or buyer gives us a “heads up” however we let them know that while we will keep this date open, should another inspection need to be set during this time, we will call them and either have them confirm to go ahead or we will schedule next available. We keep in mind this inspection could happen but until it is actually confirmed we just keep moving it a couple days back.
I do a lot of inspections prior to getting the deal locked in. Very common when multiple offers are going to be coming in.
You need to set an expiration date and time for “hold” status.
“Sure, agent Closetoadeal, I’d be happy to hold that slot for you that’s a week out, but I’d sure hate to have nothing to do that day at the last minute. Just get back to me within two days to confirm the inspection. If you don’t have the paperwork completed by then, I’ll need to give away that slot.”
This system has worked quite well for us, and it’s fair to both sides.
Reuben, that pretty much nails it 🙂