eBook - Home Inspection Business from A to Z

The client should check with the local Better Business Bureau and other organizations to determine if the contractor is reputable. The contractor should provide references of former clients they have done work for. This can help the client to find out about the contractors track record. However, if the contractor does provide your client with names, he's going to make sure he doesn't give them phone numbers of unhappy customers! This is where the client's own judgment will come into play in deciding if a contractor is reputable.

All aspects of repair agreements with contractors should be clearly stated in the written price estimate. The client should have a time limit and a price cap on the repair work. This will prevent the contractor from "dragging their feet" to complete the job. A price cap will prevent cost overruns and excess fees added after the work has begun. A statement should be put in the estimate that the contractor will provide the homeowner with all permits and final approvals from town hall. Any warranties for the repair work should be in writing. If the seller has hired contractors to make repairs, the client needs to speak with them about warranties. The client should find out how long the warranties are in effect and if they are transferable to the new owners.

There's another aspect that you need to inform your client about regarding negotiating with the seller. That is there will be times when some Realtors and other third parties will tell your client, "Oh, there's no way the seller is going to reduce his price. He's already giving the house away and he has two backup offers waiting if you don't buy the house now. "  HORSE MANURE!!!!  I've heard that line used 100,000 times, not only while doing home inspections and appraisals, but also when buying my own rental properties. I've seen my own offers accepted by sellers that some know-it-all Realtor told me would never be accepted. I've also seen many clients get offers accepted when a Realtor or other third party told them the seller would never accept it.

So don't let yourself or your client be intimidated by anyone. It's your client's money and future, he/she has to be the one to decide how much he/she wants to pay for a house. Don't you or any third party make the decision for them. Any Realtors involved in the transaction have a fiduciary responsibility to the buyer or the seller. This means that they are required to present any and all purchase offers from all potential buyers to the seller that they know about. No matter how low or ridiculous the offer might seem, it still has to be presented to the seller. It doesn't matter if someone offers the seller less than 1/2 the asking price. They have to present the offer to give the seller the opportunity to accept it or reject it.

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