Adventures in real estate... don't skip the inspection!

notfarnow · 04:51 AM

As some of you know, I recently started as a real estate agent. It's been great so far, busy with some really good clients. It's actually a really strong market here, with price up marginally over last year.

Anyway, last week I was driving home at suppertime when one of my clients called. Wanted to put an offer in on a house. ~260k, 1 year old, nice area, 1 acre lot. We write it up, and within a couple hours we had an accepted offer, pending water test, inspection etc.

So, two days later we do the inspection on this 1 year old home. I was fortunate to be able to tag along. They found:
-No strongbacks running perpendicular to the engineered floor joists, making the floors bouncy
-the hardwood floors were run parallel to the joists, not necessary a big deal, but couplde with the above issue, the flooring was drooping and you could actually feel each joist if you're in your sock feet.
-the carrying beam in the basement had 4' cut out of it to accommodate a staircase, and the jack posts at either side of the cut were set on the concrete floor, NOT on pads
-the garage floor had cracks... not just cosmetic, it was heaving. If we put a level on them you could see where one part was actually lifting away. No rebar

The seller offered to have the items rectified (epoxy squirted in the garage floor cracks... oh sure!), but my clients backed out altogether. Who wants a 1 year old home that wasn't built to code, and who wants to guess what's hidden behind the drywall?

Anyway, I always find it funny when people say they don't want the hassle of an older house. With my ~140 year old wobbly house, I bought it crooked with a heaved garage floor and bouncy floors... but I paid an appropriate price for it. I feel bad for someone who pays for the "peace of mind" of a brand-spanking new home, but ends up with a disaster like that.

So there you have it. Lots of people skip the inspection on new homes. Spooky!

Porsche_monkey · 04-26-2009, 04:45 AM

You are an agent now. It's your job to gloss over these minor cosmetic issues. Don't let honesty and integrity get in the way of a good commission, or have you not finished the broker's classes?

Jim Richards · 04-26-2009, 04:57 AM

Wow.

Porsche_monkey · 04-26-2009, 05:01 AM

Quote:

Originally Posted by Jim Richards

Wow.

You know where Jake lives, right? That's like finding a pick-up truck or a banjo in the Ozarks and saying 'wow'.

notfarnow · 04-26-2009, 05:04 AM

Quote:

Originally Posted by Porsche_monkey

You are an agent now. It's your job to gloss over these minor cosmetic issues. Don't let honesty and integrity get in the way of a good commission, or have you not finished the broker's classes?

I made a point of sitting down with several agents who have been at this for 20+ years. The biggest thing I learned was to NOT chase commissions, think of it as a *service* business, not a sales business.

I make MONEY if I sell someone a house, I make a LIVING if I sell them their next house in 10 years, their friends homes, their family... I don't get to do that if I elbow them into a deal they're not comfortable with. They may smile and thank me to be polite... but they would NEVER recommend me to anyone.

Porsche_monkey · 04-26-2009, 05:09 AM

In real estate they call that 'going over to the dark side'.

Hope you do well. And make enough money to buy a nice 911. You are a good guy Jake, you'll do well.

Jim Richards · 04-26-2009, 05:10 AM

Quote:

Originally Posted by porsche_monkey

you know where jake lives, right? That's like finding a pick-up truck or a banjo in the ozarks and saying 'wow'.

lol! :d

notfarnow · 05:22 AM

Quote:

Originally Posted by Porsche_monkey

You know where Jake lives, right? That's like finding a pick-up truck or a banjo in the Ozarks and saying 'wow'.

LOL, ya think Toronto doesn't have any shoddy construction? Am I gonna have to google it??

Lots of great homes, new and old, out here. The downtown area has lots of older dumps, but some spectacular old brownstones too.

Quote:

Originally Posted by Porsche_monkey

In real estate they call that 'going over to the dark side'.

Hope you do well. And make enough money to buy a nice 911. You are a good guy Jake, you'll do well.

Thanks! Yeah I have already dealt with a couple snakes. I have a pretty well-tuned BS detector, and I'm not afraid to tell someone to pound sand. The selling agent on that aforementioned house started getting his elbows into me because we didn't have a professional inspection (we used a builder). I said no problem, we'll get a proper inspection... I'll call the building inspector. That was the end of that.

And FWIW, even if I make enough money to buy a nice 911, I won't. I'll buy a tatty one that I can drive year round, and leave parked downtown without worrying about. Driving my dad's Carrera made me realize I don't really enjoy using a car with kid gloves.

PS: Jim, about your "snow tire" avatar. Those are Blizzak ws50's. I feel better now, thanks.

jhynesrockmtn · 04-26-2009, 06:49 AM

I bought and sold a new home in Colorado several years ago. The house overall was well built but the inspector found a whole section where the insulating crew had not finished and there was no attic insulation in the house. What they didn't catch was a whole section of roofing tiles installed on the ridge over the garage backwards. Luckily when I went to sell, the builder was still constructing in the neighborhood, I was still under warranty and they came out and fixed it.

Agree, always get a good inspection from someone who knows what they are doing. It has saved my butt several times and the one time I didn't do it, the house I got in the divorce :-), I'm still fixing several issues several years later.........

craigster59 · craigster59's Garage

Way to go Jake. I knew that with your construction knowledge and integrity that you'd do well in the RE biz. Glad it's working out and sounds like you really enjoy it. Keep doing what you're doing and you'll soon have all the business you can handle.

HardDrive · 04-26-2009, 08:55 AM

Quote:

Originally Posted by notfarnow

I made a point of sitting down with several agents who have been at this for 20+ years. The biggest thing I learned was to NOT chase commissions, think of it as a *service* business, not a sales business.

I make MONEY if I sell someone a house, I make a LIVING if I sell them their next house in 10 years, their friends homes, their family... I don't get to do that if I elbow them into a deal they're not comfortable with. They may smile and thank me to be polite... but they would NEVER recommend me to anyone.

Thanks. Had a notion of getting my license myself. Good advice.

MRM · 04-26-2009, 10:14 AM

Keep insisting that your clients get inspections, and keep insisting that they use someone good. If they buy a bad house, they'll blame you and your reputation takes a hit. You won't get a referral out of them and they'll never come back to you when they need a house in the future. If they don't buy that house because it didn't pass inspection, they'll be loyal to you because you proved that you watch out for them. They will buy from you when they do find the right house, they'll use you five years from now when they get transferred or move to a bigger house, or retire and downsize. And they'll refer people to you in the mean time. Keep doing what you have been doing and you'll be suprised how quickly your business grows and how your reputations preceeds you.

I never understood the short term gain mentality of some professions. Lawyers, real estate agents, and car salesmen have that sort of reputation. But if you notice, the good ones always give you the advice that is best for you, so that your situation turns out the best it can and they are judged by the success of your whole endeavor, not the quick bucks that will soon be forgotten.

You can tell a good salesman by what he tries to sell you. If you come in, describe what you want, and the salesman tries to squeeze you into something he has ready in stock right there, he's the bad type. But if he takes inventory of your needs, works with your budget and says let's look around until we see something that fits, you are working with the right kind.

911Rob · 911Rob's Garage

Wow, a one year old house with that crap going on? Too bad you wasted your time writing the offer in the first place, but good call for your buyer; likely a loyal client now.

Congrats on the new gig and the best of luck with it all.

fwiw, I always recommend a professional home inspection and if they decline I write it up in the offer that that the buyer declined. Unfortunately, the main reason I do this is for my own personal liabilities and protection. I never do it for a house that I personally buy, I think it's a stupid waste of money that any idiot could figure out on their own with a tape, level and flashlight.

Heel n Toe · 04-26-2009, 11:24 AM

Wow... what kind of builder puts in a garage floor with no rebar? And all that hardwood flooring running parallel to the joists... ugh.

I'm guessing you've already found out the name of the builder and will be on high alert for homes built by him in the future.

Rick Lee · Rick Lee's Garage

Isn't there still a warranty on a one year old home? How can the builder not still be on the hook for a house not built to code a year ago?

Taz's Master · 04-26-2009, 04:03 PM

What about the building inspector? I'm finishing up an owner/builder project (lots of fun, lots of time, lots of learning) and while I expected an adversarial relationship with the inspector, I quickly found out that his job was simply to make sure I'd end up with a better house than if he wasn't doing his job. Even if the house wasn't built by a professional, it should still be up to code. If the inspector got paid, I'd be very upset with how he/she did their job.

Dantilla · 04-26-2009, 06:59 PM

A friend is a home inspector, and often finds major problems in brand-new homes.

No attic insulation is fairly common, and once he found that the sewer line had never been hooked up. All waste water was being dumped into the crawlspace.

notfarnow · 04-26-2009, 09:52 PM

Quote:

Originally Posted by 911Rob

Too bad you wasted your time writing the offer in the first place, but good call for your buyer; likely a loyal client now.

Not a waste at all. The clients will be buying a house this summer... I don't care what house they buy as long as they are happy. Plus, this was a good experience for me to have early on. Learned a couple good lessons.

Quote:

Originally Posted by Heel n Toe

I'm guessing you've already found out the name of the builder and will be on high alert for homes built by him in the future.

You betcha. They have changed their name to a numbered company. Still building, and I will be watchful.

Quote:

Originally Posted by Rick Lee

Isn't there still a warranty on a one year old home? How can the builder not still be on the hook for a house not built to code a year ago?

This home has a 7yr warrantee. At this point it's up to the seller to decide if they want to chase the warrantee, or sell it as a non-disclosure property. They now live about 1000 miles away, so it must be a huge hassle for them. I'll be interested to see how much is dislosed to future buyers.

Quote:

Originally Posted by Taz's Master

What about the building inspector? I'm finishing up an owner/builder project (lots of fun, lots of time, lots of learning) and while I expected an adversarial relationship with the inspector, I quickly found out that his job was simply to make sure I'd end up with a better house than if he wasn't doing his job. Even if the house wasn't built by a professional, it should still be up to code. If the inspector got paid, I'd be very upset with how he/she did their job.

I'd bet that no building inspector ever set foot in the place. That's why when the seller's agent started giving me jabs about not using a "pro" inspection (they had a friend who is a builder do the inspection), my offer to call in the building inspector made for an awkward silence.

onewhippedpuppy · 04-27-2009, 05:49 AM

Jake, you're on the right track. I'm still looking for a straight, no BS realtor.

Your customers are smart for bringing in their builder friend, make sure you suggest that they continue to solicit his advice. Many home inspectors have little construction experience and are, quite frankly, a joke. I found a number of issues that our home inspector missed, I forced him to go back and write them up. We wanted leverage in our negotiations, which of course needed substantiated by this "professional" inspection.