Inspection Objection and Resolution Tips: Fix It Now or Fix It Later

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Below, we’ve detailed some Inspection Objection and Resolution Advice. Buying a home to flip is a serious purchase decision. Knowing the property’s true condition and what you are walking into is paramount. Always use a qualified home inspector to verify the structural quality in a potential buy. However, you should also know common problems to look out for such as:

  • Roof Sloping
  • Cracked Stucco or Exterior
  • Broken Pipes or Plumbing

Now, that you know what to watch out for, here are the key inspection details you should know…

Rule of Thumb:

Make calculated, informed decisions on what to repair or not repair. As a flipper, if you decide not to repair a problem during renovation, you may be responsible for the fixes upon closing inspection. This requires you to go back to the rehab phase or compensate the buyer so that he/she can make those repairs on their own if not, you may lose the deal. Now, some of their requests may be cosmetic, so those fixes is up to the seller’s discretion. However, the inspection process highlights the fine details of your property and thusly can make or break the sale of your flipped property.

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Key Inspection Details and Documents [with examples] to Know:

  • Inspection Report: This is the inspector’s list outlining defects and life safety items that are not up to code. These are repair recommendations needed on the  property.
  • Inspection Objection: During the purchase of the home, the buyer can thoroughly inspect the property and inspection report. Then, they request a list of changes or repairs to be completed by move-in date.
  • Inspection Resolution: The seller’s response to the buyer’s objection and details of the specific  fixes that they will complete.

Keep These Details in Mind for Your Next Home Inspection:

  • Track all dates. When is your response to the Inspection Objection due? What are the official closing dates? Keep a thorough calendar to stay on top of your deal.
  • Monitor with a Inspection Checklist. Use our free home inspection checklist to do a walkthrough of your property on or the day before your scheduled inspection for quality assurance. This checklist is a recommended list of items. Always consult a certified home inspector for a comprehensive check.  
  • Clean up your space. A clean house makes a huge difference to an inspector. Keep rooms tidy and wipe everything down — cleanliness breeds quality.
  • Review and negotiate. Once you receive the inspection report from the buyer’s real estate agent, review the list of items before taking it to a contractor. At this point, emotions may be high for the first time flipper having put a large amount of time and effort into this project. However, remember that all items in the Inspection Report are subject to negotiation. The seller will review and return an objection to the buyer, referencing the report on the changes They are willing to make.
    • Example 1: (in reference to report): Seller agrees to repair master bedroom, right side window, Item 3.3.
    • Example 2: If you, as the seller, are not willing to make a change suggested, you do not reference that item in your inspection objection document.
  • Safety First. Any requests in the Inspection Objection that deal with items in code violation must be remedied. For instance,  an outlet is not critical, but a sewer crack must be fixed.
  • Amend to extend. Typically, you will want to do this by closing or the day before as the buyer will request receipts of work.
    • Example 1: The inspector says the property needs a new roof. You disagree and want a roofer’s consultation to confirm. The roofer reports that only a few tabs need replacing, but he’s out of town so it will have to wait. Extend the closing date to save money and keep you from losing the deal.
    • Example 2: The inspector says there may be asbestos in the home. Request a few days for further testing to confirm that his observations are true before you rush in and spend a lot of money to fix it.

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  • Document everything. Keep all receipts, contracts and work orders. If a contractor does not normally give receipts for an order, have them create one or sign a document that you create. You need confirmation or receipt for the work to show during your inspection resolution.
  • Provide funds to the buyer. In some cases, the necessary fixes might be easier for the buyer to conquer post-sale. You can extend a credit, a percentage off the cost of the home, so the new owner can move in  and have their requests fixed or updated per their style and selections. This is a good solution if timing or getting work completed is an issue for you.
  • Commit and fix. If you say that you will make a fix, do it in a timely manner.  Never play games or try to mislead in any way. Put  your best foot forward and focus on building great relationships that will help grow your business.

Want more tips on staying in the clear for inspections?  Schedule an appointment with an expert coach for guidance on inspections and selling your flip.

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