| December 23, 2002 |
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Even if your client has an inspection performed, some details can still slip through the cracks, causing your deal to fall through. What can you do? According to Colorado broker John G. Johnston, whatever can go wrong will go wrong. "You’ve showed all the properties to your clients, helped them narrow the search, discussed offers, presented, countered, accepted, and been through the inspections, appraisals, loan commitments and closing," he says. "After a nice lunch with your new buyers, you're off to the next client. Yes, you were professional and did it by the book, but, did you do it all?" Johnston lives in Westcliffe, Colorado, southwest of Colorado Springs, a community of only 3,500 people in the whole county. He calls it paradise, with a town population of about 800, but despite being on a first-name basis with most everyone, a deal can still fall through if certain items don't make the checklist. For example, suggests Johnston, "You had a home inspector perform a thorough inspection, and they found the usual things. But, did you check anything for yourself? In this part of the world…electricity, water, septic, plumbing are regular checks on the inspection sheet. But, there’s more. Are there tap fees for any of the connections? Are they paid? Can they be assumed by the new buyer, or do they have to be paid out of closing? It’s a simple phone call to verify services and fees. Asking for written reports to present to the buyers is a courtesy they will appreciate and remember. He says in his part of the world it's common for agents to check items such as the electric tap fee the sellers agreed to pay off at closing and whether phones are working. "You got the well report and even suggested the buyers retest the well because the well was drilled five years ago," and you had the septic tank pumped and the inspection passed all the plumbing and wiring in the house," says Johnston, "but you're still not done." "Did you check the telephone company for service?" he asks, "The inspection revealed wiring to the house and the house had telephone jacks in every room. The house was vacant so there was no way to check the outlets. In this part of the world, the phone company contracts services for laying phone lines to subdivisions and houses. But that doesn’t mean they provide service! Buyers can even get a new phone number for their new home. But that doesn’t mean they have service!" The moral of the story? Inspections, even if they are done properly, don't cover all the little things that can upset buyers after the closing. As an agent, it's up to you to make sure your buyer doesn't have any moving day surprises. |
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