Thread: What percentage of your clients base their purchase on your findings?

Just trying to guage the client physche with repsect to home buying.

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Most of the time, I have no idea if they did or didn't buy. I would say these days about 10% tell me at the inspection that they aren't buying the (foreclosed) house.

You mean the agent dosent call you complaining that you "blew the deal"?

In some way every home purchase that gets a home inspection , the home inspection has a good deal as to whether or not they purchase the home. Few findings as in pretty stuff I am sure they go right thru with it. A couple major concerns may ruin the deal if the sellers will not negotiate but that still may not kill the deal. Many major concerns and a lot of minor concerns and the seller won't budge or it is an as is deal I am quite sure that is when many walk.

Your question in itself makes no sense , kind of, because they would not get an inspection if they were not worried about buying a money pit or maybe their lender, FHA loans, want to make sure there are no dangers, naked sheathing on the roof, bad foundations etc.

Every deal is based on a home inspection in some way even if they inspect it themselves.

Originally Posted by Marc Mazza

You mean the agent dosent call you complaining that you "blew the deal"?

Nope, sometimes they let me know at the next inspection, or I ask them. Seriously, usually they are happy that their client didn't buy the POS.

Originally Posted by Ted Menelly

In some way every home purchase that gets a home inspection , the home inspection has a good deal as to whether or not they purchase the home. Few findings as in pretty stuff I am sure they go right thru with it. A couple major concerns may ruin the deal if the sellers will not negotiate but that still may not kill the deal. Many major concerns and a lot of minor concerns and the seller won't budge or it is an as is deal I am quite sure that is when many walk.

Your question in itself makes no sense , kind of, because they would not get an inspection if they were not worried about buying a money pit or maybe their lender, FHA loans, want to make sure there are no dangers, naked sheathing on the roof, bad foundations etc.

Every deal is based on a home inspection in some way even if they inspect it themselves.

I suppose, but im not talking about flat-out piles of crap. I speaking to the ones that are the average day to day inspections. Most people do a visual before they ever make the offer, unless it's sight-unseen or investors. Investors may never see a property, as is in many cases with us.
And, some people buy houses no matter what condition it's in. And no matter what we say.

What percentage of your clients base their purchase on your findings?

As far as I know, all of them.

Originally Posted by Marc Mazza

You mean the agent dosent call you complaining that you "blew the deal"?

In 10+ years I've never had that call..... you're making me think I'm too easy

Funny...I have an agent that refers to me as "Marc kevorkian".

It really depends upon the client and the purpose for the purchase - assuming we are talking about an inspection pursuant to a sales transaction. It also depends on the nature/circumstances of the sale, e.g foreclosure, short sale or neither.

I would say that 9 out of 10 clients, in recent months, are typical home purchasers. The remaining 10% are investors. Often condition is not that critical for them if they are planning to incorporate some fix-up following the sale and they have little personal attachment or motivation. A couple of years ago it was more like 60/40. In todays market, with so many foreclosures, the home's condition can be pretty obvious, right from the get-go and buyers are often willing to put up with 'problems' because the property has been discounted (over pre-2009 sales prices) and if steeply discounted - multiple offers. Today's typical homebuyer seems to be more willing to walk away from a property, (a) because there are plenty of others to chose from (b) Still tentative in making a heavy financial commitment - so an overall 'negative' Inspection will provide the rationale to do so.

In my experience, a few years ago buyers (not investors/flippers) were more reluctant to walk away despite significant issues being found during the inspection. They were more emotionally attached to the property than they are today and properties in a hot R.E. market were over-bid with multiple offers. Perhaps 1% walked based on the inspection.

Also, with financing being as tight as it is, some transactions do not go through because of buyer's credit issues, which may not surface until after the inspection. Today, approx. 10% the homes I inspect result in a failed transaction - but that could also include for financial reasons.

I doubt any Inspector can really answer this .

Originally Posted by Bob Elliott

I doubt any Inspector can really answer this .

Really? How any inspections do you do where your client didnt but a house because of your report results?
It happens to me at least 3-5+ times a month. And I know I cannot be the only one.
Wouldnt that answer this question?

The simple answer would be ~ 75% or more. I'd say about 25% are going to buy the house no matter what. They are only getting an inspection because they have to / are supposed to.
- I know whether they actually buy the house or not most of the time. They usually call, ask questions, give me updates. Once in a while, I'll do my follow-up call, they are happy, thank me and I never hear anything again.
- ~ 50/50 don't buy the 1st house I look at for them because of what I find during the inspection. It isn't uncommon for me to do 2-3 houses for someone.
- Condos are probably worse, maybe 75% don't buy the 1st Condo I look at.
I focus on two things during my inspections. Defects of course and potential post purchase costs. Often times the post purchase costs can make a property far less financially feasible.

Originally Posted by Markus Keller

It isn't uncommon for me to do 2-3 houses for someone.

I have clients on monthly installments they do so many inspections.

Originally Posted by Marc Mazza

Really? How any inspections do you do where your client didnt but a house because of your report results?
It happens to me at least 3-5+ times a month. And I know I cannot be the only one.
Wouldnt that answer this question?

I could only guess since the only way to know for sure is if every single client uses you a second time and that can take a few years in some cases.

By the time they call me, they already made the decision to buy the house. The inspection usually results in some negotiating.

About 1 in 25 or so call me back and say, " I backed out of that deal and I want you to inspect another house for me "

Sometimes it's because there is way too much wrong with a house. Sometimes it's because the parties could not reach common ground during negotiations.

Whatever the case, I just do what I do and let the chips fall where they may.

Originally Posted by Bob Elliott

I could only guess since the only way to know for sure is if every single client uses you a second time and that can take a few years in some cases.

I think I'm more in-tune with this because the RE's make it a point to call and tell you the deal bombed.

Originally Posted by Marc Mazza

I think I'm more in-tune with this because the RE's make it a point to call and tell you the deal bombed.

Different area.
I depend on my client referral base and rarely get more than 3 or 4 inspections out of Agents before they figure it was my fault (OK must be 25%)

Originally Posted by Bob Elliott

Different area.
I depend on my client referral base and rarely get more than 3 or 4 inspections out of Agents before they figure it was my fault (OK must be 25%)

Out here we're like 97% RE referral. RE + = bread and butter...unfortunately.

Originally Posted by Marc Mazza

Out here we're like 97% RE referral. RE + = bread and butter...unfortunately.

Marc, when did you get into the profession?

Originally Posted by Scott Patterson

Marc, when did you get into the profession?

1996 part time. 98ish full time. It was hard for me starting out because I was so young.
Building a referral network is difficult here because the agents really push their inspectors. Most buyers here dont really care who does the inspection as they are typically thought upon as a formality, rather than necessity. Then we get into the pricing. We are by far the most expensive out in my area, so that takes us out of the running in many cases. Again, no matter how "great" you are.
We have an agent base referral network of around 250 -300 REAs. Most have been with us for a while, many are PT at the moment. Typically, our client referrals are freinds of friends + we have the internet.

Hey Marc!!

I never thought of putting 2 and 2 together before in your posts last year..

How the heck are ya!

Be well sir!

Originally Posted by Tim Spargo

Hey Marc!!

I never thought of putting 2 and 2 together before in your posts last year..

How the heck are ya!

Be well sir!

Thats funny. It's the whole last name thing huh? We're doing good here. Ya know..."Living the dream". hey, Dom is thinking about adding numbers to his program, pretty cool. If he does that, I'm ditching IV5 and moving on up.

Originally Posted by Marc Mazza

Building a referral network is difficult here because the agents really push their inspectors.

I could not imagine functioning in that environment.

I can imagine there's a significant part of the public that practices due diligence when choosing an inspector. If you put out a message that you stand totally independent, I bet you could do well without having to be someones B, and in turn build a great solid referral base from clients, not reeltors.

Thinking of sucking up to reeltors makes my stomach turn.

Originally Posted by John Dirks Jr

I could not imagine functioning in that environment.

I can imagine there's a significant part of the public that practices due diligence when choosing an inspector. If you put out a message that you stand totally independent, I bet you could do well without having to be someones B, and in turn build a great solid referral base from clients, not reeltors.

Thinking of sucking up to reeltors makes my stomach turn.

Mine is turning right now..., but I think it was the Baja Fresh I had.

Yea, some agents leave so much to be desired.

They don't call me because I killed the deal. The ones I work with are smart enough to know that it was the house that committed suicide.

I work with an agent who calls me her deal killer. But she's always there with the next client. Never have a problem getting paid.
In 15 years I think I've told 4 clients to get in their cars, ride away and never look back. All 4 bought.
We have some effect, but probably not over-arching.
jlmathis