377 Pages of Inspection Reports. Now What?

Your offer has been accepted, the inspections are complete, and the reports are arriving.

We recently represented buyers purchasing a large home in Beverly Hills. By the time inspections were complete, they had 9 separate reports totaling 377 pages. That's a lot of information to absorb. The number of pages often reflects the size of the home and the thoroughness of the inspectors as much as the condition of the property.

We encourage buyers to attend as many of their inspections as possible, and we attend them ourselves. A footnote or seemingly minor observation sometimes warrants a closer look once the inspector explains it, while something that reads as alarming on paper may be less concerning in person. Being there provides important context that a written report may leave out, along with the opportunity to ask questions while the inspector is standing in front of the issue.

The first question is whether a finding was reasonably anticipated when the offer was made, or is new information. Beyond the negotiation, a thorough set of reports gives a buyer a road map to the house: what needs attention now, what to keep an eye on, and which systems are in great shape and can be set aside. The reports also say a lot about the quality of the home and how well it has been maintained. In our experience, uncertainty about the scope of a problem can matter as much as the cost of the repair.

From there, we work closely with our buyers to develop a negotiating strategy. That often involves further evaluations, contractor estimates, and discussions about how best to address significant concerns. Depending on the circumstances, we may push for repairs, substantial credits, a price reduction, or some combination. Buyers and sellers don't always view the same findings through the same lens, so a request supported by estimates and documentation tends to carry more weight than one based on concern alone. When the findings give our buyers leverage, we use it, and we push back when a seller's response doesn't reflect what was discovered. A seller may agree, counter, or decline, and if the two sides can't reach agreement, the buyer decides whether to proceed or exercise any cancellation rights under the contract. In the Beverly Hills purchase, our buyers received a concession covering several of the larger items, and the sale closed.

Most purchases continue after inspections. Occasionally, however, the findings lead a buyer to reconsider. We recently represented buyers purchasing a 20-year-old home in Venice. Inspections uncovered nearly a dozen areas of water intrusion involving the roof, windows, and even areas near ground level. Taken together, the findings suggested broader waterproofing problems throughout the home. Addressing them could involve a substantial project with an uncertain scope, possible hidden damage, and a lengthy repair process. Our buyers considered their options, including whether to take on the work themselves or have the seller complete the repairs. Ultimately, they weren't comfortable with either approach. They loved the home and were disappointed, but decided not to proceed. It was a project they never wanted to take on, and it was the right decision for them. Fortunately, that's not the typical outcome.

Most inspection issues can be evaluated, addressed, or accounted for in negotiations. But the Venice experience illustrates why this process matters.