Buyers Who Misunderstand the Scope, Purpose of the Home Inspection

Here’s some advice to Buyers tempted to impose requirements like the one above following their home inspection.

“Don’t.”

power washThere are two reasons for that:  1) it could easily cost the Buyer the home, especially if the Seller has other, serious interest (or even a backup offer in hand); and 2) it’s outside the scope of the Inspection.

In-Bounds . . . and Out

So, what’s fair game?

Material*, new information that comes to light as a result of the inspection, which would require the Seller to amend their Disclosure if they didn’t resolve the issue(s) with the current Buyer (and the deal went away).

Not fair game:  anything that was apparent prior to the Inspection (like the dirty garage floor).

Starting at the End

None of which is to say that the Buyer is necessarily wrong about the garage floor needing to be power washed (probably true of most Minnesota garages, especially this time of year).

footballHowever, no Seller is obliged to disclose that their garage floor is dirty . . . because it’s not a defect in the home.

Ergo, if the Buyer makes the request and the Seller (appropriately) declines . . . nothing in the Seller’s Disclosure needs to be changed/updated.

(Other) Unintended Consequences

Antagonizing a Seller with fussy demands isn’t smart for other reasons as well.

For example, the Seller may reconsider leaving behind that mounted plasma TV that they were otherwise inclined to throw into the deal (true).

Real-life example #2:  the Seller (my client) who cancelled a $150 (closing) gift basket after an especially nit-picky walk-thru inspection (the Buyer held up the closing over magifyinga handyman item — on a $400k home — that might have cost $50).

See,How to Blow a Seller’s Good Will — and $150 Closing Gift“; “Reason #38 Not to Nitpick on Inspection“; and “The Difference Between a Home Inspection Addendum and a Repair List.”

*“Materiality” isn’t strictly defined, but rather is one of those “you know it when you see it” things.

So, a $300 item on a $200k house is likely material; a $50 item on an $800k home definitely is not.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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