Dan you are correct about loosing business, but I too try to explain the possible ramifications to sellers doing a prelisting inspection. In TX there is a space on the disclosure for that asks about inspections performed in recent history and calls for the attachment of the report. The few I have done have resulted in repairs done, disclosure of non-repaired items (foundation) and the seller being able to sell with little taken off of their price for repair issues. As Steve said, it takes the disclosed items off of the negotiation table.
Win, win if the seller is ethical...

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Jim Luttrall
Mr. Inspector.net, Inc.
Allen, Texas 75002