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What Really Matters?

1.   Just Four Things

Buying a home? The process can be stressful.  A home inspection is supposed to give you peace of mind, but often has the opposite effect. You will be asked to absorb a lot of information in a short time. This often includes a written report, a checklist, photographs, environmental reports, and what the inspector himself says during the inspection. 

Combined with the seller's disclosure and what you notice yourself, makes the experience even more overwhelming. What should you do?

​AOM Property Inspection Solutions provides “peace of mind” so you can relax.  Most of your inspection will be maintenance recommendations, life expectancies for various systems and components, and minor imperfections. These are useful to know about. However, the issues that really matter will fall into four categories:

1.   Major defects. An example of this would be a structural failure;

2.   Things that lead to major defects, such as a small roof-flashing leak;

3.   Things that may hinder your ability to finance, legally occupy, or insure the home; and

4.   Safety hazards, such as an exposed, live buss bar at the electrical panel or improperly sized railings and steps causing       dangerous conditions for both children and adults.

Anything in these categories should be addressed. Often, a serious problem can be corrected inexpensively to protect both life and property (especially in categories 2 and 4).

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Most sellers are often surprised to learn of defects uncovered during an inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home is perfect. Keep things in perspective. Do not kill your deal over things that do not matter. It is inappropriate to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure, or nit-picky items.

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2.   Material Defects in the Summary Report

We recommend that you read and understand the entire inspection report and ask questions about anything you find in the report. I am responsible for writing in the inspection report the defects that I both observe during the inspection and deem (or consider) to be material.  A material defect is very serious and must be further evaluated and corrected immediately by a qualified contractor or professional.  I will put those material defects into the summary report.  The summary report is not the entire inspection report.

3.   A Real Estate Agent's Duty

This is written for the real estate professional.

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The seller has accepted your clients' offer and now, with your help, your clients must choose a home inspector. Should you steer them toward the inspector who writes the softest reports? Should you steer them toward the inspector who pays to be on your office's preferred vendor list? Should you help them find the cheapest inspector? The answers to these questions are of course No, No, and No.

You have a fiduciary duty to your client and, therefore, must recommend the very best inspectors. If you recommend a patty-cake inspector, an inspector who indirectly pays for your recommendation, or a cheap inspector, you violate your fiduciary duty to your client.

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The National Association of REALTORs defines your duties in their Code of Ethics. Article 1 requires you to protect and promote your clients' interests. Article 6 requires you to disclose any financial benefit you may receive from recommending related real estate services (this also includes any benefit to your broker).

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Because most real estate agents get paid only if the real estate transaction successfully takes place, your personal interests, and your fiduciary duties already conflict. Don't make your situation any worse. The best way to avoid negligent referral claims, to operate ethically, and to fulfill your fiduciary duty is to help your client find an inspector based solely on merit.

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Although no real estate agent can guarantee the thoroughness of any particular inspector, there is a strong correlation between an inspector's fees and his/her competence (in other words, you get what you pay for). Helping your client find a cheap inspector for the purchase of their lifetime is a violation of your fiduciary duty. When in doubt, seek out the most experienced inspector  that provides the best value for your clients.