Managing Due Diligence, Repairs, and the BINSR

Set expectations before the inspection happens. Tell your buyer that most homes have inspection findings -- especially homes that have been lived in for more than a few years. The goal of the inspection is information, not perfection.

Attend the inspection when possible. Walk through with the inspector and your client. When your client sees the inspector pointing at a minor roof flashing issue and explaining it calmly, they will not panic the way they would reading 'roof deficiency identified' in a PDF report three hours later.

A BINSR that requests everything on the inspection report signals one of two things: inexperience, or a buyer who wants out. Sellers and their agents recognize both. A BINSR that requests the genuinely significant items -- safety issues, major mechanical defects, items with real cost -- is taken seriously and negotiated in good faith.

Group your requests by category: safety items, major systems, and then specific items of significance. For each, note the inspector's findings factually and state what you are requesting. A credit or price reduction rather than repairs gives the seller flexibility and often results in faster agreement.

Sellers' first reaction to a BINSR is often emotional. They feel like the buyer is attacking their home. Your job is to reframe it: this is a negotiation, not a verdict. Buyers are allowed to ask. Sellers are allowed to counter or decline.

Review each item factually. Which ones are legitimate? Which ones are overreaching? Which ones reflect something the seller knew about but did not budget to fix? Advise the seller on what to address, what to counter with a credit, and what to decline -- based on the likelihood that the deal proceeds or collapses on each item.

Not every inspection result warrants cancellation, but some do. A home with significant foundation movement, extensive undisclosed termite damage, or a roof that needs replacement in year one may be a situation where the numbers do not work -- especially if the seller is unwilling to address or credit for the issue.

Your job is not to save the deal at all costs. Your job is to help your client make an informed decision. Sometimes the right decision is to cancel within the Due Diligence period and find a better property. That is what the period is for.