The Obvious

 My mother said that I have a “gift” for stating the obvious. That's not as silly as it sounds. Sometimes what's obvious to one person may not be obvious to another. Because the sale or purchase of real estate involves large sums of money, it's good to know as much as possible about the property even if it means stating the obvious. 
 
There is an interesting relationship that develops between the sellers, buyers, real estate agents, and home inspector.
 
It starts with the sellers wanting to sell their house. They are usually willing to spruce up or fix the house to make it more attractive. They often seek professional help from a Realtor or stager. The “return on investment” is an important consideration. The cost of remodeling the guest bathroom might not generate a good return. However, a coat of paint is often a good investment. Please note that the sellers are required by law to disclose known defects. Deception is a ticket to the courthouse. Savvy sellers will have a home inspection before they see their first potential buyer. This gives them the opportunity to disclose defects that might otherwise derail the transaction when the buyer has a home inspection. Although sellers are generally not required to repair defects to sell a property, they could opt to make repairs cost effectively at their own pace. Often when defects are discovered during escrow, the seller is asked to make repairs quickly or the sale price is reduced. A repair that might cost $100 before a property is put on the market, could balloon into a $1000 negotiated item during escrow.  Sellers who have their homes inspected before listing them can maximize offers, minimize contingencies, shorten the contingency removal period, and avoid deal killing surprises.

The buyers need to see the value of the property. Some buyers look for a turnkey property while others look for a fixer-upper. The turnkey property is move-in ready and will cost more up front. A thorough home inspection can verify that the turnkey property is indeed move-in ready. A closer look by a qualified home inspector could reveal defects that are not obvious to a casual observer. The fixer-upper costs less and offers an opportunity for the buyers to improve the property and be rewarded for their efforts. A detailed home inspection helps the buyer to compile a list of needed repairs to determine the viability of the investment. In severe cases of deferred maintenance, it could be more cost-effective to tear down and rebuild the property to avoid a “money pit”.
 
Everyone likes a good deal and negotiations are crucial. Most real estate transactions in California are assisted by professional Realtors, who are trained in the art of negotiation. As a reward for their efforts, the Realtors are paid a commission that is a percentage of the sale price. Realtors are highly motivated to complete the sale. If the sale doesn't go through, they don't make money. However, knowledgeable Realtors will insist on a thorough inspection, even if it means killing the deal, because the liability of a bad transaction can cost many times more than what might've been made on the commission. All parties benefit from a more complete knowledge of what it is that is being bought and sold.
 
Sometimes the interested parties in a property transaction suffer from cognitive dissidence, which means they don't want to hear what they don't want to hear. The seller doesn't want to hear anything that might reduce the sale price. The buyers have finally found the “right property” and would rather not have anyone spoil it for them. The realtors won't make any money unless the deal goes through. It's up to the home inspector to shed a little light (literally and figuratively). A good home inspector is not beholding to any of the interested parties. The home inspector is the one who has no vested interest in the sale of the property. Sometimes a foolish home inspector will try to “help” the seller or Realtor by not revealing all that was discovered in the course of the inspection. This is not the kind help anybody needs. If known conditions are covered up and the buyer isn't fully informed, there is a higher risk of ending up in court when a defect surfaces after the close of escrow. Any home inspector who is doing his job has been called a “deal killer” at least once.