Negotiating Win-Win Inspections for Maximum Benefit

Last night I taught a special class where we discussed what happens once you are under contract to buy a property regarding the inspection.

In this class, I go over the inspection process including tips for getting the most out of your inspection.

Plus, we cover what the inspection objection process is, what the range of normal is and how to maximize your objection benefits while still playing win-win. Additionally, we discuss strategies for resolving the inspection objection.

inspection-flow-chart

You can watch the recording of the presentation that I did with Jassen live on April 11, 2017 below.

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Complete the "Contract To Close: Inspection and Due Diligence" checklist:

https://LearnToBeRich.com/inspection-and-due-diligence/

Mark this task as complete when done.

Contract To CloseContract To Close: Inspection and Due DiligenceUltimate Nomad ChecklistWeek 13

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Watch the recording of the live presentation of "Negotiating Win-Win Inspections for Maximum Benefit" available on:

https://LearnToBeRich.com/negotiating-inspections/

Mark this task as complete once you've watched it.

ClassesContract To Close: Inspection and Due DiligenceInspectionUltimate Nomad ChecklistWeek 8

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If you have not done so recently, review the recording of the live presentation of "Negotiating Win-Win Inspections for Maximum Benefit" available on:

https://LearnToBeRich.com/negotiating-inspections/

Mark this task as complete once you've watched it.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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Now that you're under contract, it is time to double check rents for the property so you can object using the Inspection Objection if rents will not work for you.

Research comparable rental property rent rates.

We are testing a subscription service that provides rental comps, so ask your Real Estate Broker to pull a report on your property to see what rent comps are from that service.

You may also want to contact your Property Manager if you're going to use one to get an idea of what they think rents would be.

Mark this task done when complete.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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Your Real Estate Broker should provide you with a list of Home Inspectors. You can use whoever you wish including Home Inspectors not on the recommended list.

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ASAPContract Deadline: Inspection Objection DeadlineDream TeamDream Team - Pre-ClosingInspectionUltimate Nomad ChecklistWeek 61Week 9

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Determine who you will use to inspect your new property when you go under contract.

Ask your Real Estate Broker for a recommendation.

Mark this task complete when you've decided which Home Inspector you'll use when you go under contract.

ASAPContract Deadline: Inspection Objection DeadlineDream TeamDream Team - Pre-ClosingInspectionUltimate Nomad ChecklistWeek 61Week 9

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After you go under contract decide whether you will do a Radon Test as part of your inspection on the property.

Mark this task complete when you decide.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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Determine who you will use to test for radon once you have a property under contract. Often this is the same person you selected as your Home Inspector.

Ask your Real Estate Broker or Home Inspector for a recommendation.

Mark this task complete once you've decided which Radon Testing Company you'll use.

Contract Deadline: Inspection Objection DeadlineDream TeamDream Team - Pre-ClosingInspectionOptionalUltimate Nomad ChecklistWeek 61Week 9

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If you've decided to have a Radon Test performed, hire Radon Test Company to do Radon Test ideally during the same time your Home Inspector will be there inspecting the property. It may even be the Home Inspector doing the Radon Test.

Mark this complete after you receive the results of your Radon Test if you decide to perform a Radon Test.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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After you go under contract decide whether you will do a Sewer Scope as part of your inspection on the property.

Mark this task complete when you decide.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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Decide which Sewer Scope Company you will use to do a Sewer Scope on the property.

You can ask your Real Estate Broker for recommendations.

Mark this task complete once you've decided on a Sewer Scope Company to use.

Contract Deadline: Inspection Objection DeadlineDream TeamDream Team - Pre-ClosingInspectionUltimate Nomad ChecklistWeek 61Week 9

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If you've decided to have a Sewer Scope performed, hire Sewer Scope Company to do Sewer Scope ideally during the same time your Home Inspector will be there inspecting the property.

If you have any problems, I strongly recommend paying the extra fee to get the video of the problem to provide as evidence with any Inspection Objection.

Mark this complete after your Home Inspection if you decide to perform a Sewer Scope.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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After you go under contract decide whether you will do a Methamphetamine Test as part of your inspection on the property.

Mark this task complete when you decide.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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Decide which Meth Test Company you will use to do a Meth Test on the property.

You can ask your Real Estate Broker for recommendations.

Mark this task complete once you've decided on a Meth Test Company to use.

Contract Deadline: Inspection Objection DeadlineDream TeamDream Team - Pre-ClosingInspectionUltimate Nomad ChecklistWeek 61Week 9

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If you've decided to have a Meth Test performed, hire Meth Test Company to do Meth Test ideally during the same time your Home Inspector will be there inspecting the property.

Mark this complete after your Home Inspection if you decide to perform a Meth Test.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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Contact your Insurance Agent once you're under contract on the property and ask them to provide you a copy of the CLUE Report for the property. This gives you a history of the insurance claims made against the property.

Mark this task complete once you've received a copy of the CLUE Report from your Insurance Agent.

Contract Deadline: Inspection Objection DeadlineInspectionMaking OffersUltimate Nomad ChecklistWeek 9

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Bring a copy of the CLUE Report from your Insurance Agent to the Home Inspection so you can use it to look closer at any items you have questions about with your Home Inspector during the inspection.

Mark this task complete once you finished the Home Inspection.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 61Week 9

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Bring a copy of the "Seller's Property Disclosure" to Home Inspection so you can use it to look closer at any items you have questions about with your Home Inspector during the inspection.

Mark this task complete once you finished the Home Inspection.

Contract Deadline: Inspection Objection DeadlineInspectionSellers Property DisclosureUltimate Nomad ChecklistWeek 61Week 9

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Go to Home Inspection with your Home Inspector.

Your Real Estate Broker usually does not attend.

Mark this task complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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As the ability to record audio and video gets less expensive and more easily accessible, be aware that a Seller may record audio and video of inside their home while you're at the inspection.

WARNING: Don't say or do anything at an inspection you wouldn't say or do right in front of the Seller. They may be recording you.

Yes, I'm paranoid, but just because I'm paranoid doesn't mean they aren't really recording.

Mark this task done when complete.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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With the help of your Home Inspector, find out the location of the main water shutoff to the property in case you ever need it.

Write down the location somewhere where you'll remember it.

Mark this task done when complete.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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Check to make sure that you have CO (carbon monoxide) detectors installed within 15 feet of each bedroom.

Some Lenders will have their Appraiser check to make sure they are there. If they're not, the Appraiser will charge you a second trip fee to go back out and check to make sure they are there before Closing. Easier to check at the inspection (with the help of your Home Inspector) so we can let the Seller's Real Estate Broker know to have them installed prior to the Appraiser going to the property for the Appraisal.

Mark this task done when complete.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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While at your inspection, if the appliances are important to you, photograph them and maybe photograph the model numbers of them.

It is exceptionally rare, but some Sellers may try to switch out appliances between the inspection and Closing. If you have photos of the appliances and the model numbers it will make it easier to show what was installed at the time of the inspection.

And, yes, I know I am paranoid.

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Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 8

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After your Home Inspector sends you a copy of the Home Inspection Report after your Home Inspection, review it.

Mark complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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Save a copy of the Home Inspection report from your Home Inspector to the property folder in Dropbox.

Mark complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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Save a copy of the radon test results from your Radon Test Company to the property folder in Dropbox.

Mark complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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Save a copy of the sewer scope report from your Sewer Scope Company to the property folder in Dropbox.

Mark complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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Save a copy of the meth test report from your Meth Test Company to the property folder in Dropbox.

Mark complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionUltimate Nomad ChecklistWeek 9

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If you're going to object to anything during your Home Inspection discuss what you're objecting to and have Real Estate Broker prepare an "Inspection Objection".

Make sure you wait to get all your reports back before objecting like your sewer scope, radon test results, and methamphetamine test results.

IMPORTANT: This must be done prior to your "Inspection Objection Deadline".

Mark this complete when you completed an "Inspection Objection" or if you're not going to object.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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Once your Real Estate Broker completes the "Inspection Objection" with your help, sign the "Inspection Objection" via DocuSign.

IMPORTANT: This must be done prior to your "Inspection Objection Deadline".

Mark this complete when you completed an "Inspection Objection" or if you're not going to object.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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Save a copy of your "Inspection Objection" in your property folder on Dropbox after you've signed it via DocuSign.

Mark this complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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If you find out information during your inspection period so egregious that there is no possible resolution with the Seller, you can choose to terminate and protect your Earnest Money.

Ask your Real Estate Broker to prepare a "Notice To Terminate" and "Earnest Money Release" prior to your Inspection Objection Deadline.

Mark this complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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If you find out information during your inspection period so egregious that there is no possible resolution with the Seller, you can choose to terminate and protect your Earnest Money.

Sign the "Notice To Terminate" and "Earnest Money Release" that your Real Estate Broker sends over to you via DocuSign. It must be delivered to the Seller and/or the Seller's Real Estate Broker prior to your Inspection Objection Deadline.

Mark this complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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Once you've signed your "Notice To Terminate" and "Earnest Money Release" save a copy of each to your property folder on Dropbox.

Once the Seller signs, you can replace your copies with fully executed versions signed by you and the Seller.

Mark this complete when done.

Contract Deadline: Inspection Objection DeadlineInspectionPaperworkUltimate Nomad ChecklistWeek 9

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If you objected using an "Inspection Objection", you will usually use an "Inspection Resolution" form with the help of your Real Estate Broker to come to a resolution to what you and the Seller agreed to regarding the inspection items.

After the "Inspection Objection" your Real Estate Broker with your assistance will negotiate with the Seller and Seller's Real Estate Broker to find terms that are acceptable for you.

IMPORTANT: This must be done prior to Inspection Resolution Deadline. If you have not come to terms by the Inspection Resolution Deadline and you still want to purchase the property you must withdraw your "Inspection Objection" prior to the Inspection Resolution Deadline or your contract will terminate.

The inspection process has lots of nuance so discuss this in detail with your Real Estate Broker.

Mark this complete once you've come to terms on your inspection resolution with a fully executed "Inspection Resolution" form, withdrawn your "Inspection Objection" or did not object at all.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

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If you've come to a resolution regarding your inspection concerns, then your Real Estate Broker should prepare either an "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or an "Inspection Resolution" to document the resolution.

In addition, they should prepare your "Inspection Objection" to have you withdraw it so your contract does not terminate.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

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If you've come to a resolution regarding your inspection, then sign the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or "Inspection Resolution" to document the resolution.

Additionally, sign the withdrawal section of the "Inspection Objection" via DocuSign.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

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Save the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" or "Inspection Resolution" that you signed via DocuSign to your property folder in Dropbox.

Also, save the "Inspection Objection" that you withdrew to your property folder in Dropox overwriting the previous one.

You'll replace the "Amend/Extend" or "Inspection Resolution" with the copy signed by both you and the Seller once the Seller signs it.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

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If you are unable to come to a resolution with the Seller over your inspection but you still want to purchase the property, you will need to withdraw your "Inspection Objection" prior to the Inspection Resolution Deadline.

Sign the withdrawal section of the "Inspection Objection" that your Real Estate Broker sends over via DocuSign.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

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After signing the withdrawal section of the "Inspection Objection" via DocuSign, save a copy of it to your property folder on Dropbox.

Mark this task as complete when done.

Contract Deadline: Inspection Resolution DeadlineInspectionUltimate Nomad ChecklistWeek 10

Previous Recordings

And this is the recording from the previous time I taught this class.

Improvements

The following are improvements I plan to make to this page based on some of my Standard Process Improvement Questions.

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